Royal Bank Of Canada Issues Positive Forecast for Waste Management (NYSE:WM) Stock Price

Key Points

• Royal Bank of Canada raised Waste Management’s price target from $244 to $247 while maintaining a “sector perform” rating, implying about 7.1% upside. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $256.05.
• Waste Management shares rose 2.5% to $230.68, although the stock remains below its 12-month high of $248.13. Institutional investors own approximately 80.4% of the company.
• Third-quarter revenue increased 6.3% year over year to $6.85 billion, exceeding estimates, but adjusted EPS of $2.15 missed consensus by $0.03. Higher costs and slowing waste volumes pressured results, while healthcare growth and stronger free cash flow supported the outlook.

Waste Management (NYSE:WM - Get Free Report) had its price objective lifted by analysts at Royal Bank Of Canada from $244.00 to $247.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "sector perform" rating on the business services provider's stock. Royal Bank Of Canada's target price would indicate a potential upside of 7.08% from the stock's current price.

Several other brokerages have also recently issued reports on WM. JPMorgan Chase & Co. dropped their target price on shares of Waste Management from $270.00 to $235.00 and set an "overweight" rating on the stock in a report on Thursday, October 8th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $267.00 price objective on shares of Waste Management in a research report on Thursday. BNP Paribas Exane decreased their target price on shares of Waste Management from $248.00 to $245.00 and set a "neutral" rating for the company in a research report on Thursday. Scotiabank increased their price target on Waste Management from $250.00 to $260.00 and gave the company a "sector perform" rating in a research note on Thursday, July 16th. Finally, Canadian Imperial Bank of Commerce decreased their price objective on shares of Waste Management from $250.00 to $225.00 and set a "neutral" rating for the company in a research report on Thursday, October 8th. Fourteen investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, Waste Management presently has an average rating of "Moderate Buy" and a consensus price target of $256.05.

Waste Management Trading Up 2.5%

Shares of WM stock traded up $5.53 during trading hours on Thursday, reaching $230.68. 2,800,731 shares of the stock were exchanged, 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 company's 50-day moving average price is $217.58 and its 200-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. The firm has a market capitalization of $92.21 billion, a price-to-earnings ratio of 32.67, a price-to-earnings-growth ratio of 3.06 and a beta of 0.42.

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

Insiders Place Their Bets

In other Waste Management news, CAO John Carroll sold 1,365 shares of Waste Management stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $219.90, for a total transaction of $300,163.50. Following the completion of the transaction, the chief accounting officer owned 3,509 shares in the company, valued at approximately $771,629.10. This trade represents a 28.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.18% of the company's stock.

Institutional Trading of Waste Management

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. lifted its stake in shares of Waste Management by 1.8% in the 2nd quarter. BlackRock Inc. now owns 30,733,944 shares of the business services provider's stock valued at $6,849,981,000 after purchasing an additional 535,079 shares during the period. State Street Corp boosted its position in Waste Management by 2.9% during the second quarter. State Street Corp now owns 18,008,931 shares of the business services provider's stock worth $4,013,831,000 after purchasing an additional 507,209 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Waste Management by 1.1% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,121,427 shares of the business services provider's stock valued at $695,704,000 after purchasing an additional 35,322 shares during the period. Swedbank AB lifted its position in shares of Waste Management by 17.0% during the 1st quarter. Swedbank AB now owns 2,392,868 shares of the business services provider's stock valued at $549,857,000 after buying an additional 348,183 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in Waste Management by 1.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,320,966 shares of the business services provider's stock valued at $533,340,000 after acquiring an additional 26,847 shares during the period. 80.40% of the stock is owned by institutional investors and hedge funds.

Key Waste Management News

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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