Barclays Initiates Coverage on Casella Waste Systems (NASDAQ:CWST)

Key Points

• Barclays has initiated coverage on Casella Waste Systems with an "underweight" rating and a price target of $88.00, indicating a potential downside from the current stock price.
• Casella Waste Systems reported a strong quarterly performance, with earnings per share of $0.36, beating estimates, and 23.4% year-over-year revenue growth.
• The stock has garnered a consensus rating of "Moderate Buy" from analysts, with a mix of ratings including one "Strong Buy" and five "Buy" ratings.

Barclays initiated coverage on shares of Casella Waste Systems (NASDAQ:CWST - Free Report) in a research note released on Friday, Marketbeat reports. The firm issued an underweight rating and a $88.00 price target on the industrial products company's stock.

Several other analysts also recently commented on the stock. William Blair reiterated an "outperform" rating on shares of Casella Waste Systems in a research report on Tuesday, July 15th. Raymond James Financial set a $125.00 price target on shares of Casella Waste Systems and gave the stock a "strong-buy" rating in a research note on Monday, August 4th. Finally, Cowen reissued a "buy" rating on shares of Casella Waste Systems in a research note on Friday, June 6th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Casella Waste Systems has a consensus rating of "Moderate Buy" and an average target price of $114.38.

Casella Waste Systems Price Performance

Shares of NASDAQ:CWST traded down $1.77 during midday trading on Friday, hitting $86.69. The company's stock had a trading volume of 1,023,933 shares, compared to its average volume of 453,522. The business's 50 day simple moving average is $100.19 and its 200 day simple moving average is $109.22. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.61 and a current ratio of 1.70. The company has a market cap of $5.50 billion, a P/E ratio of 481.61 and a beta of 0.84. Casella Waste Systems has a 12-month low of $85.21 and a 12-month high of $121.24.

Casella Waste Systems (NASDAQ:CWST - Get Free Report) last issued its earnings results on Thursday, July 31st. The industrial products company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.31 by $0.05. The company had revenue of $465.33 million for the quarter, compared to the consensus estimate of $454.01 million. Casella Waste Systems had a net margin of 0.64% and a return on equity of 4.97%. Casella Waste Systems's quarterly revenue was up 23.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.22 earnings per share. Casella Waste Systems has set its FY 2025 guidance at EPS. On average, analysts forecast that Casella Waste Systems will post 1.16 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Alliancebernstein L.P. increased its position in Casella Waste Systems by 1,106.7% in the second quarter. Alliancebernstein L.P. now owns 867,285 shares of the industrial products company's stock worth $100,067,000 after purchasing an additional 795,414 shares during the period. Norges Bank bought a new stake in shares of Casella Waste Systems during the 2nd quarter valued at $55,948,000. Bank of New York Mellon Corp raised its position in shares of Casella Waste Systems by 157.6% during the 1st quarter. Bank of New York Mellon Corp now owns 740,000 shares of the industrial products company's stock valued at $82,517,000 after acquiring an additional 452,776 shares during the last quarter. Invesco Ltd. raised its position in shares of Casella Waste Systems by 20.0% during the 2nd quarter. Invesco Ltd. now owns 2,597,599 shares of the industrial products company's stock valued at $299,711,000 after acquiring an additional 432,589 shares during the last quarter. Finally, Wasatch Advisors LP raised its position in shares of Casella Waste Systems by 14.4% during the 2nd quarter. Wasatch Advisors LP now owns 3,412,123 shares of the industrial products company's stock valued at $393,691,000 after acquiring an additional 428,909 shares during the last quarter. 99.51% of the stock is owned by institutional investors.

About Casella Waste Systems

Casella Waste Systems, Inc, together with its subsidiaries, operates as a vertically integrated solid waste services company in the United States. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers.