Casella Waste Systems (NASDAQ:CWST) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Quarterly beat: Casella reported EPS of $0.20 vs. a $0.10 consensus and revenue of $457.33M (up 9.6% YoY), though profitability remains thin with a net margin of 0.43%.
• Shares jumped to $79.25 on the print; the company has a $5.03B market cap, a 52‑week range of $74.05–$121.24 and an elevated PE ratio of 660.47, while analysts’ consensus is a "Moderate Buy" with an average price target of $111.00.
• Insiders sold roughly 15,830 shares (~$1.45M) in the last quarter, even as institutional ownership is very high at 99.51% and several funds (notably Jane Street and AQR) materially increased positions.

Casella Waste Systems (NASDAQ:CWST - Get Free Report) announced its quarterly earnings results on Thursday. The industrial products company reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.10, FiscalAI reports. The business had revenue of $457.33 million for the quarter, compared to the consensus estimate of $454.57 million. Casella Waste Systems had a return on equity of 5.17% and a net margin of 0.43%.The business's revenue was up 9.6% on a year-over-year basis. During the same quarter last year, the business posted $0.19 EPS.

Casella Waste Systems Stock Performance

CWST traded up $1.14 during trading hours on Thursday, hitting $79.25. The company's stock had a trading volume of 852,763 shares, compared to its average volume of 829,303. Casella Waste Systems has a fifty-two week low of $74.05 and a fifty-two week high of $121.24. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $5.03 billion, a PE ratio of 660.47 and a beta of 0.84. The company has a 50-day simple moving average of $85.11 and a 200 day simple moving average of $92.91.

Analysts Set New Price Targets

Several analysts recently issued reports on CWST shares. Jefferies Financial Group set a $120.00 price target on Casella Waste Systems and gave the stock a "buy" rating in a report on Tuesday, January 6th. UBS Group cut their price target on Casella Waste Systems from $140.00 to $130.00 and set a "buy" rating on the stock in a report on Tuesday, March 10th. Barclays raised their price target on Casella Waste Systems from $95.00 to $101.00 and gave the stock an "equal weight" rating in a report on Monday, February 23rd. JPMorgan Chase & Co. cut their price target on Casella Waste Systems from $112.00 to $110.00 and set a "neutral" rating on the stock in a report on Monday, February 23rd. Finally, Raymond James Financial reissued a "strong-buy" rating and issued a $115.00 price target on shares of Casella Waste Systems in a report on Monday, February 23rd. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $111.00.

Insiders Place Their Bets

In related news, CFO Bradford John Helgeson sold 405 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $87.73, for a total value of $35,530.65. Following the sale, the chief financial officer directly owned 7,342 shares in the company, valued at $644,113.66. This trade represents a 5.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John W. Casella sold 1,744 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $87.77, for a total value of $153,070.88. Following the completion of the sale, the director owned 30,795 shares in the company, valued at approximately $2,702,877.15. This represents a 5.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 15,830 shares of company stock valued at $1,454,208 in the last quarter. 3.81% of the stock is owned by insiders.

Institutional Trading of Casella Waste Systems

Large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC increased its position in shares of Casella Waste Systems by 57.7% during the 1st quarter. AQR Capital Management LLC now owns 9,283 shares of the industrial products company's stock valued at $1,035,000 after purchasing an additional 3,395 shares during the period. Jones Financial Companies Lllp increased its position in shares of Casella Waste Systems by 1,601.9% during the 1st quarter. Jones Financial Companies Lllp now owns 5,412 shares of the industrial products company's stock valued at $603,000 after purchasing an additional 5,094 shares during the period. Jane Street Group LLC increased its position in shares of Casella Waste Systems by 3,226.1% during the 1st quarter. Jane Street Group LLC now owns 69,849 shares of the industrial products company's stock valued at $7,789,000 after purchasing an additional 67,749 shares during the period. Geneos Wealth Management Inc. increased its position in shares of 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 during the period. Finally, Quantbot Technologies LP acquired a new position in shares of Casella Waste Systems during the 2nd quarter valued at $63,000. 99.51% of the stock is currently owned by institutional investors and hedge funds.

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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