Waste Management, Inc. (NYSE:WM) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is moderately bullish: Nineteen brokerages rate Waste Management a consensus “Moderate Buy,” with 13 buy ratings and six holds. The average 12-month price target is $258.89.
• Quarterly earnings exceeded expectations: Waste Management reported adjusted EPS of $2.02, ahead of the $1.98 consensus, while revenue rose 4% year over year to $6.68 billion, slightly below estimates.
• The company declared a quarterly dividend of $0.945 per share, equivalent to $3.78 annually and a 1.8% yield. The dividend is scheduled for payment on September 25 to shareholders of record as of September 11.

Waste Management, Inc. (NYSE:WM - Get Free Report) has earned an average rating of "Moderate Buy" from the nineteen brokerages that are covering the firm, MarketBeat Ratings reports. Six equities research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $258.8889.

A number of research firms have recently issued reports on WM. Canadian Imperial Bank of Commerce downgraded shares of Waste Management from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 29th. Royal Bank Of Canada raised their price target on Waste Management from $240.00 to $244.00 and gave the company a "sector perform" rating in a research report on Thursday, July 30th. Scotiabank upped their price objective on Waste Management from $250.00 to $260.00 and gave the stock a "sector perform" rating in a report on Thursday, July 16th. UBS Group increased their price objective on Waste Management from $265.00 to $270.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. Finally, Weiss Ratings cut Waste Management from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, August 25th.

Waste Management Price Performance

NYSE:WM opened at $214.56 on Friday. Waste Management has a 52-week low of $194.11 and a 52-week high of $248.13. The company has a debt-to-equity ratio of 2.24, a quick ratio of 0.87 and a current ratio of 0.91. The firm has a market capitalization of $85.76 billion, a price-to-earnings ratio of 30.39, a P/E/G ratio of 2.73 and a beta of 0.42. The stock has a fifty day moving average of $227.81 and a 200 day moving average of $226.67.

Waste Management (NYSE:WM - Get Free Report) last announced its earnings results on Tuesday, July 28th. The business services provider reported $2.02 earnings per share for the quarter, beating analysts' consensus estimates of $1.98 by $0.04. Waste Management had a net margin of 11.11% and a return on equity of 31.68%. The business had revenue of $6.68 billion for the quarter, compared to the consensus estimate of $6.71 billion. During the same period last year, the firm posted $1.92 earnings per share. Waste Management's quarterly revenue was up 4.0% on a year-over-year basis. On average, research analysts expect that Waste Management will post 8.13 EPS for the current fiscal year.

Waste Management Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 11th will be paid a dividend of $0.945 per share. The ex-dividend date of this dividend is Friday, September 11th. This represents a $3.78 annualized dividend and a dividend yield of 1.8%. Waste Management's dividend payout ratio (DPR) is 53.54%.

Insider Activity

In other news, CAO John Carroll sold 1,365 shares of the company's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $219.90, for a total value of $300,163.50. Following the completion of the sale, the chief accounting officer owned 3,509 shares of the company's stock, valued at approximately $771,629.10. This represents a 28.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.18% of the company's stock.

Institutional Trading of Waste Management

Several hedge funds have recently added to or reduced their stakes in the business. RHL Group LLC purchased a new position in shares of Waste Management in the fourth quarter worth about $29,000. Financial Network Wealth Advisors LLC boosted its holdings in Waste Management by 55.3% during the 4th quarter. Financial Network Wealth Advisors LLC now owns 132 shares of the business services provider's stock valued at $29,000 after acquiring an additional 47 shares during the period. Mcguire Capital Advisors Inc. bought a new position in Waste Management during the 4th quarter worth approximately $29,000. JPL Wealth Management LLC purchased a new position in Waste Management in the 3rd quarter worth approximately $30,000. Finally, Main Street Group LTD bought a new stake in Waste Management in the first quarter valued at approximately $31,000. 80.40% of the stock is owned by institutional investors.

About Waste Management

WM, Inc, formerly known as Waste Management, Inc, is an environmental services company that provides waste collection, transfer, disposal and recycling services. The company serves residential, commercial, industrial and municipal customers, helping manage everyday refuse as well as certain specialized waste streams.

Its operations include curbside and commercial waste collection, transfer stations, recycling facilities, landfills and waste-related energy services. WM also develops renewable natural gas and electricity projects that capture landfill gas for use as an energy source.

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