Casella Waste Systems, Inc. (NASDAQ:CWST) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• "Moderate Buy" consensus from 12 analysts with an average 1-year price target of $111, comprised of 1 sell, 2 holds, 7 buys and 2 strong buys.
• Company insiders have been net sellers recently — CEO John W. Casella sold 6,726 shares at about $93.10 (a 19.37% reduction) and insiders sold 15,830 shares worth roughly $1.45M over the quarter.
• Casella topped EPS estimates ($0.30 vs. $0.22) while revenue was slightly below expectations; shares trade near $81 with a 1-year range of $74.05–$121.24 and a very high trailing P/E (~677), signaling rich valuation given current earnings.

Casella Waste Systems, Inc. (NASDAQ:CWST - Get Free Report) has received an average rating of "Moderate Buy" from the twelve analysts that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, seven have assigned a buy rating and two have issued a strong buy rating on the company. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $111.00.

CWST has been the subject of several analyst reports. Weiss Ratings downgraded Casella Waste Systems from a "hold (c-)" rating to a "sell (d)" rating in a research report on Monday, February 23rd. Zacks Research upgraded Casella Waste Systems from a "hold" rating to a "strong-buy" rating in a research report on Thursday, January 1st. UBS Group cut their target price on Casella Waste Systems from $140.00 to $130.00 and set a "buy" rating for the company in a research report on Tuesday, March 10th. Jefferies Financial Group set a $120.00 target price on Casella Waste Systems and gave the stock a "buy" rating in a research report on Tuesday, January 6th. Finally, Raymond James Financial reissued a "strong-buy" rating and set a $115.00 price target on shares of Casella Waste Systems in a report on Monday, February 23rd.

Insider Activity

In related news, CEO John W. Casella sold 6,726 shares of Casella Waste Systems stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $93.10, for a total transaction of $626,190.60. Following the completion of the transaction, the chief executive officer directly owned 27,989 shares of the company's stock, valued at $2,605,775.90. This trade represents a 19.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Kevin Drohan sold 675 shares of Casella Waste Systems stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $92.61, for a total transaction of $62,511.75. Following the transaction, the chief accounting officer directly owned 7,462 shares of the company's stock, valued at $691,055.82. This represents a 8.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 15,830 shares of company stock valued at $1,454,208. Company insiders own 3.81% of the company's stock.

Institutional Investors Weigh In On Casella Waste Systems

Hedge funds and other institutional investors have recently bought and sold shares of the business. Hilton Head Capital Partners LLC acquired a new stake in Casella Waste Systems during the 4th quarter valued at $25,000. Smartleaf Asset Management LLC increased its holdings in Casella Waste Systems by 180.2% during the 3rd quarter. Smartleaf Asset Management LLC now owns 297 shares of the industrial products company's stock valued at $27,000 after purchasing an additional 191 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in Casella Waste Systems by 301.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 245 shares of the industrial products company's stock valued at $27,000 after purchasing an additional 184 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in Casella Waste Systems during the 4th quarter valued at $27,000. Finally, First Horizon Corp acquired a new stake in Casella Waste Systems during the 3rd quarter valued at $31,000. 99.51% of the stock is owned by institutional investors and hedge funds.

Casella Waste Systems Price Performance

Shares of NASDAQ:CWST opened at $81.22 on Friday. Casella Waste Systems has a 1-year low of $74.05 and a 1-year high of $121.24. The firm has a market capitalization of $5.16 billion, a PE ratio of 676.89 and a beta of 0.84. The business's 50 day moving average is $89.48 and its 200-day moving average is $93.66. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.72.

Casella Waste Systems (NASDAQ:CWST - Get Free Report) last posted its earnings results on Thursday, February 19th. The industrial products company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.22 by $0.08. The business had revenue of $469.06 million during the quarter, compared to the consensus estimate of $471.32 million. Casella Waste Systems had a return on equity of 5.17% and a net margin of 0.43%.Casella Waste Systems's revenue was up 9.7% on a year-over-year basis. During the same quarter last year, the company earned $0.41 EPS. Sell-side analysts predict that Casella Waste Systems will post 1.16 earnings per share for the current year.

About Casella Waste Systems

Casella Waste Systems, Inc is a regional resource management company headquartered in Rutland, Vermont. Established in 1975, the company has grown from a single-truck operation into a multi-state provider of integrated waste management solutions. Casella offers a comprehensive range of services, including residential, commercial and industrial waste collection, transfer station operations, landfill disposal, recycling processing and organics management.

Through a network of solid waste transfer stations, recycling facilities and landfills, Casella serves communities primarily across the northeastern United States and parts of the mid-Atlantic region.

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