BMO Capital Markets Forecasts Strong Price Appreciation for Waste Management (NYSE:WM) Stock

Key Points

• BMO Capital Markets has raised the price target for Waste Management (NYSE:WM) from $245.00 to $248.00, indicating a potential upside of 5.56% from its current price.
• The company reported an EPS of $1.92, beating the consensus estimate of $1.89, with a revenue of $6.43 billion for the recent quarter, reflecting a 19.0% increase year-over-year.
• An abundance of analyst coverage shows a consensus rating of "Moderate Buy", with a high average price target of $253.76 following recent increases from several investment firms.

Waste Management (NYSE:WM - Free Report) had its target price hoisted by BMO Capital Markets from $245.00 to $248.00 in a research note released on Wednesday,Benzinga reports. The brokerage currently has a market perform rating on the business services provider's stock.

A number of other brokerages have also issued reports on WM. JPMorgan Chase & Co. upgraded shares of Waste Management from a "neutral" rating to an "overweight" rating and raised their target price for the stock from $225.00 to $277.00 in a research report on Friday, May 23rd. Seaport Res Ptn upgraded shares of Waste Management to a "hold" rating in a research report on Tuesday, May 6th. CIBC raised their target price on shares of Waste Management from $244.00 to $250.00 and gave the stock a "neutral" rating in a research report on Thursday, June 26th. Melius began coverage on shares of Waste Management in a research report on Monday, June 9th. They set a "buy" rating on the stock. Finally, Robert W. Baird raised their target price on shares of Waste Management from $235.00 to $245.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 30th. Eight analysts have rated the stock with a hold rating, thirteen have given a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $254.35.

Waste Management Stock Performance

NYSE WM traded down $0.62 during trading hours on Wednesday, hitting $228.55. 384,958 shares of the stock were exchanged, compared to its average volume of 1,718,162. The company has a quick ratio of 0.79, a current ratio of 0.86 and a debt-to-equity ratio of 2.51. The stock has a 50-day moving average of $231.65 and a 200 day moving average of $227.97. Waste Management has a 12-month low of $199.69 and a 12-month high of $242.58. The company has a market cap of $91.97 billion, a price-to-earnings ratio of 33.92, a price-to-earnings-growth ratio of 2.83 and a beta of 0.64.

Waste Management (NYSE:WM - Get Free Report) last issued its quarterly earnings data on Monday, July 28th. The business services provider reported $1.92 earnings per share for the quarter, topping analysts' consensus estimates of $1.89 by $0.03. Waste Management had a net margin of 11.36% and a return on equity of 34.37%. The business had revenue of $6.43 billion during the quarter, compared to analysts' expectations of $6.37 billion. During the same period last year, the company posted $1.82 EPS. The company's revenue was up 19.0% on a year-over-year basis. As a group, equities research analysts forecast that Waste Management will post 7.7 earnings per share for the current year.

Waste Management Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, June 20th. Investors of record on Friday, June 6th were paid a dividend of $0.825 per share. The ex-dividend date of this dividend was Friday, June 6th. This represents a $3.30 annualized dividend and a yield of 1.4%. Waste Management's payout ratio is 48.96%.

Insider Buying and Selling at Waste Management

In related news, SVP Rafael Carrasco sold 674 shares of Waste Management stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $236.81, for a total transaction of $159,609.94. Following the sale, the senior vice president owned 16,542 shares of the company's stock, valued at $3,917,311.02. The trade was a 3.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Devina A. Rankin sold 57,888 shares of Waste Management stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $237.36, for a total transaction of $13,740,295.68. Following the sale, the chief financial officer directly owned 83,934 shares in the company, valued at $19,922,574.24. This trade represents a 40.82% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.18% of the company's stock.

Institutional Investors Weigh In On Waste Management

Several hedge funds and other institutional investors have recently modified their holdings of the stock. T. Rowe Price Investment Management Inc. increased its position in shares of Waste Management by 1.2% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,866 shares of the business services provider's stock worth $781,000 after purchasing an additional 44 shares during the last quarter. Ascent Group LLC boosted its holdings in shares of Waste Management by 0.6% in the 4th quarter. Ascent Group LLC now owns 7,534 shares of the business services provider's stock valued at $1,520,000 after buying an additional 44 shares during the period. Insight Wealth Strategies LLC boosted its holdings in shares of Waste Management by 0.4% in the 1st quarter. Insight Wealth Strategies LLC now owns 11,655 shares of the business services provider's stock valued at $2,698,000 after buying an additional 44 shares during the period. McAdam LLC boosted its holdings in shares of Waste Management by 3.1% in the 1st quarter. McAdam LLC now owns 1,482 shares of the business services provider's stock valued at $343,000 after buying an additional 44 shares during the period. Finally, Syntegra Private Wealth Group LLC boosted its holdings in shares of Waste Management by 2.0% in the 2nd quarter. Syntegra Private Wealth Group LLC now owns 2,291 shares of the business services provider's stock valued at $524,000 after buying an additional 44 shares during the period. Institutional investors own 80.40% of the company's stock.

About Waste Management

Waste Management, Inc, through its subsidiaries, engages in the provision of environmental solutions to residential, commercial, industrial, and municipal customers in the United States and Canada. It offers collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns and operates transfer stations, as well as owns, develops, and operates landfill facilities that produce landfill gas used as renewable natural gas for generating electricity.