Waste Connections, Inc. (NYSE:WCN) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts rate Waste Connections “Moderate Buy”: Of 19 covering firms, 16 recommend buying and one strongly recommends buying; the average 12-month price target is $203.22.
• The company beat quarterly estimates, reporting EPS of $1.58 versus $1.52 expected and revenue of $2.64 billion versus $2.60 billion expected. Revenue rose 23.8% year over year.
• Waste Connections raised its quarterly dividend from $0.35 to $0.385 per share, equivalent to $1.54 annually and a 0.8% yield.

Waste Connections, Inc. (NYSE:WCN - Get Free Report) has received an average rating of "Moderate Buy" from the nineteen research firms that are currently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $203.22.

A number of research analysts have recently issued reports on the company. Scotiabank reissued an "outperform" rating and issued a $201.00 price objective on shares of Waste Connections in a research note on Friday, October 23rd. The Goldman Sachs Group reaffirmed a "buy" rating and set a $205.00 target price on shares of Waste Connections in a research note on Thursday, October 22nd. Deutsche Bank Aktiengesellschaft lifted their target price on Waste Connections from $191.00 to $205.00 and gave the stock a "buy" rating in a report on Friday, October 23rd. Canadian Imperial Bank of Commerce reissued an "outperform" rating and issued a $207.00 price target (up from $184.00) on shares of Waste Connections in a research note on Friday, October 23rd. Finally, UBS Group restated a "buy" rating and set a $215.00 price target (up from $200.00) on shares of Waste Connections in a report on Tuesday, October 27th.

Insider Activity at Waste Connections

In related news, SVP Philip Rivard sold 2,500 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $166.57, for a total transaction of $416,425.00. Following the transaction, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Matthew Black sold 11,000 shares of the firm's stock in a transaction on Thursday, October 29th. The stock was sold at an average price of $180.60, for a total transaction of $1,986,600.00. Following the completion of the sale, the senior vice president owned 32,530 shares of the company's stock, valued at $5,874,918. The trade was a 25.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 16,500 shares of company stock worth $2,960,235 over the last quarter. 0.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Waste Connections

Institutional investors and hedge funds have recently made changes to their positions in the stock. Group One Trading LLC bought a new stake in Waste Connections in the 2nd quarter valued at about $30,000. Western Wealth Management LLC bought a new position in Waste Connections in the first quarter worth approximately $41,000. Johnson Financial Group Inc. bought a new position in Waste Connections in the second quarter worth approximately $45,000. Wellington Altus USA Inc. boosted its holdings in Waste Connections by 205.6% in the second quarter. Wellington Altus USA Inc. now owns 275 shares of the business services provider's stock worth $48,000 after acquiring an additional 185 shares in the last quarter. Finally, Burkett Financial Services LLC acquired a new stake in Waste Connections in the third quarter valued at approximately $50,000. Institutional investors own 86.09% of the company's stock.

Waste Connections Trading Up 0.5%

WCN opened at $191.01 on Wednesday. Waste Connections has a twelve month low of $146.89 and a twelve month high of $195.34. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 1.20. The company has a fifty day moving average of $166.52 and a 200-day moving average of $164.34. The stock has a market cap of $47.69 billion, a PE ratio of 42.73, a price-to-earnings-growth ratio of 3.48 and a beta of 0.43.

Waste Connections (NYSE:WCN - Get Free Report) last released its earnings results on Wednesday, October 21st. The business services provider reported $1.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.52 by $0.06. The business had revenue of $2.64 billion for the quarter, compared to analyst estimates of $2.60 billion. Waste Connections had a net margin of 11.40% and a return on equity of 17.76%. The company's revenue was up 23.8% on a year-over-year basis. On average, sell-side analysts predict that Waste Connections will post 5.70 EPS for the current year.

Waste Connections Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 5th will be given a dividend of $0.3850 per share. This represents a $1.54 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 5th. This is a boost from Waste Connections's previous quarterly dividend of $0.35. Waste Connections's dividend payout ratio is presently 34.45%.

About Waste Connections

Waste Connections, Inc. is a North American provider of non-hazardous solid waste services. The company serves residential, commercial, industrial and municipal customers, with operations across the United States and Canada, particularly in secondary markets and rural communities. Its services include waste collection, transfer and disposal, as well as recycling and resource recovery. In select regions, Waste Connections also provides treatment, recovery and disposal services for waste generated by oil and gas exploration and production.

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