JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Waste Management (NYSE:WM) Stock

Key Points

• JPMorgan raised Waste Management’s price target from $235 to $260 and maintained an “overweight” rating, implying 12.71% upside from the prior close.
• Analyst sentiment is broadly positive, with 14 Buy ratings and six Holds producing a “Moderate Buy” consensus and an average price target of $257.37, although some firms have lowered targets.
• Waste Management’s quarterly revenue rose 6.3% year over year to $6.85 billion and exceeded estimates, but adjusted EPS of $2.15 fell short of consensus amid higher costs and slowing waste volumes.

Waste Management (NYSE:WM - Get Free Report) had its target price raised by analysts at JPMorgan Chase & Co. from $235.00 to $260.00 in a research report issued on Thursday, Benzinga reports. The brokerage currently has an "overweight" rating on the business services provider's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 12.71% from the stock's previous close.

A number of other research firms also recently commented on WM. Morgan Stanley cut their target price on shares of Waste Management from $230.00 to $220.00 and set an "equal weight" rating for the company in a research report on Tuesday, October 13th. Stifel Nicolaus increased their price target on Waste Management from $252.00 to $261.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Citigroup raised their price target on Waste Management from $263.00 to $269.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. Raymond James Financial set a $251.00 price objective on Waste Management in a report on Thursday. Finally, Wolfe Research assumed coverage on Waste Management in a research report on Tuesday, September 15th. They set a "peer perform" rating for the company. Fourteen investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, Waste Management has a consensus rating of "Moderate Buy" and a consensus price target of $257.37.

Waste Management Stock Performance

NYSE:WM traded up $5.53 during mid-day trading on Thursday, reaching $230.68. The company's stock had a trading volume of 2,800,920 shares, compared to its average volume of 2,208,013. The company has a current ratio of 0.91, a quick ratio of 0.87 and a debt-to-equity ratio of 2.24. The stock has a market cap of $92.21 billion, a P/E ratio of 32.67, a PEG ratio of 3.06 and a beta of 0.42. The firm's fifty day moving average price is $217.58 and its two-hundred day moving average price is $225.01. Waste Management has a 12-month low of $194.11 and a 12-month high of $248.13.

Waste Management (NYSE:WM - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The business services provider reported $2.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.18 by ($0.03). Waste Management had a net margin of 11.11% and a return on equity of 31.68%. The company had revenue of $6.85 billion for the quarter, compared to analysts' expectations of $6.81 billion. During the same period in the previous year, the business earned $1.98 EPS. The business's revenue was up 6.3% compared to the same quarter last year. On average, equities analysts forecast that Waste Management will post 8.09 EPS for the current fiscal year.

Insider Activity

In other news, CAO John Carroll sold 1,365 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $219.90, for a total transaction of $300,163.50. Following the completion of the sale, the chief accounting officer owned 3,509 shares of the company's stock, valued at $771,629.10. The trade was a 28.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.18% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Waste Management

A number of institutional investors have recently bought and sold shares of the stock. Main Street Group LTD purchased a new stake in shares of Waste Management in the 1st quarter valued at $31,000. Balance Wealth Partners LLC purchased a new position in Waste Management during the 3rd quarter valued at about $31,000. Cape Investment Advisory Inc. purchased a new position in Waste Management during the 2nd quarter valued at about $36,000. Markowski Investments acquired a new position in Waste Management in the 2nd quarter valued at about $38,000. Finally, Bogart Wealth LLC grew its position in Waste Management by 93.5% in the 1st quarter. Bogart Wealth LLC now owns 180 shares of the business services provider's stock valued at $41,000 after acquiring an additional 87 shares in the last quarter. 80.40% of the stock is owned by institutional investors.

Waste Management News Roundup

Here are the key news stories impacting Waste Management this week:

• Positive Sentiment: WM reported third-quarter revenue of $6.85 billion, above the $6.81 billion consensus estimate and up 6.3% year over year. Management also expects full-year revenue and free cash flow toward the high ends of its guidance ranges. Waste Management: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: The healthcare business remains a key growth driver, with operating EBITDA increasing 33% year over year. Nine-month free cash flow also jumped more than 42%, supporting the company’s financial outlook. WM Q3 Earnings Call Highlights Healthcare Gains and Volume Pressure
• Neutral Sentiment: Analyst views are divided. Barclays raised its price target to $283 and kept an “overweight” rating, while BNP Paribas Exane lowered its target to $245 and maintained a “neutral” rating, indicating limited upside from its revised valuation. Barclays Waste Management ratings
• Negative Sentiment: Adjusted earnings of $2.15 per share missed the $2.18 consensus estimate. Higher fuel and risk-management costs pressured margins, while slowing waste volumes remain a concern for operating performance. WM Q3 Earnings Miss Estimates, Revenues Increase 6.3% Year Over Year

Waste Management Company Profile

Waste Management, Inc, doing business as WM NYSE: WM, is an environmental services company that provides waste collection, transportation, disposal, recycling and resource-recovery services. The company serves residential, commercial, industrial and municipal customers through a network of collection operations, transfer stations, landfills, recycling facilities and other environmental infrastructure.

WM's services include curbside and commercial waste collection, construction and demolition debris management, recycling, organics processing and landfill disposal.

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