Waste Connections (NYSE:WCN) Stock Price Target Cut by Morgan Stanley

Key Points

• Morgan Stanley cut Waste Connections’ price target from $205 to $195 while maintaining an “overweight” rating, implying 26.62% potential upside from the stock’s $154 trading price.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $199.22, despite several firms recently adjusting their targets.
• Waste Connections exceeded quarterly expectations, reporting $1.50 in earnings per share versus the $1.35 consensus estimate and $2.56 billion in revenue, up 6.4% year over year.

Waste Connections (NYSE:WCN - Get Free Report) had its price objective cut by research analysts at Morgan Stanley from $205.00 to $195.00 in a report released on Tuesday, Benzinga reports. The firm currently has an "overweight" rating on the business services provider's stock. Morgan Stanley's price objective would indicate a potential upside of 26.62% from the stock's current price.

A number of other analysts have also recently weighed in on WCN. JPMorgan Chase & Co. reduced their price objective on shares of Waste Connections from $195.00 to $180.00 and set an "overweight" rating for the company in a research note on Thursday, October 8th. Canadian Imperial Bank of Commerce set a $184.00 target price on shares of Waste Connections and gave the company an "outperformer" rating in a research note on Thursday. UBS Group upgraded shares of Waste Connections from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $176.00 to $200.00 in a report on Friday, September 18th. Wolfe Research initiated coverage on shares of Waste Connections in a research report on Tuesday, September 15th. They set an "outperform" rating and a $204.00 target price for the company. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Waste Connections in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $199.22.

Waste Connections Stock Performance

Shares of WCN stock traded up $0.29 during trading on Tuesday, reaching $154.00. The company had a trading volume of 519,778 shares, compared to its average volume of 1,533,569. The firm's 50 day simple moving average is $161.24 and its two-hundred day simple moving average is $161.25. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.66 and a quick ratio of 0.66. Waste Connections has a one year low of $146.89 and a one year high of $179.74. The company has a market capitalization of $38.65 billion, a PE ratio of 37.08, a PEG ratio of 2.62 and a beta of 0.49.

Waste Connections (NYSE:WCN - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The business services provider reported $1.50 earnings per share for the quarter, topping the consensus estimate of $1.35 by $0.15. The firm had revenue of $2.56 billion during the quarter, compared to analyst estimates of $2.51 billion. Waste Connections had a return on equity of 17.31% and a net margin of 10.86%. The company's revenue for the quarter was up 6.4% on a year-over-year basis. During the same period in the previous year, the company earned $1.29 EPS. Sell-side analysts forecast that Waste Connections will post 5.63 earnings per share for the current year.

Insider Buying and Selling

In other news, SVP Robert Cloninger sold 2,811 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $171.02, for a total value of $480,737.22. Following the completion of the sale, the senior vice president directly owned 11,666 shares of the company's stock, valued at approximately $1,995,119.32. This represents a 19.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Philip Rivard sold 2,500 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $166.57, for a total value of $416,425.00. Following the completion of the sale, the senior vice president directly owned 734 shares of the company's stock, valued at $122,262.38. This represents a 77.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.27% of the stock is owned by insiders.

Institutional Trading of Waste Connections

A number of hedge funds have recently bought and sold shares of WCN. XXEC Inc. bought a new stake in Waste Connections in the 2nd quarter valued at $164,870,000. BlackRock Inc. bought a new position in shares of Waste Connections during the 2nd quarter worth about $1,061,947,000. The Manufacturers Life Insurance Company bought a new position in shares of Waste Connections during the 2nd quarter worth about $589,671,000. Bank of America Corp DE bought a new position in shares of Waste Connections during the 2nd quarter worth about $510,526,000. Finally, Wellington Management Group LLP acquired a new stake in shares of Waste Connections during the 2nd quarter valued at about $477,944,000. 86.09% of the stock is owned by institutional investors.

About Waste Connections

Waste Connections, Inc is a North American provider of solid waste collection, transfer, disposal, recycling and resource recovery services. The company serves residential, commercial, industrial and construction customers through local operations and provides services under municipal and other contracted arrangements.

Its business includes curbside and commercial waste collection, transfer stations, solid waste landfills, recycling facilities and organics processing. Waste Connections also provides environmental services for energy-producing customers, including the management and disposal of non-hazardous oilfield waste, and operates resource recovery and renewable energy projects in connection with certain waste facilities.

Founded in 1997, Waste Connections serves communities across the United States and Canada.

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