BlackRock Inc. Invests $3.80 Billion in Republic Services, Inc. $RSG

Key Points

• BlackRock acquired 17.8 million Republic Services shares worth approximately $3.8 billion, giving it a 5.79% stake. Institutional investors collectively own 57.73% of the company.
• Republic Services posted quarterly EPS of $1.85, exceeding estimates by $0.04, while revenue rose 4.6% year over year to $4.43 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $245.26.
• The company increased its quarterly dividend from $0.62 to $0.67 per share, implying an annualized dividend of $2.68 and a 1.2% yield.

BlackRock Inc. acquired a new stake in Republic Services, Inc. (NYSE:RSG - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 17,824,725 shares of the business services provider's stock, valued at approximately $3,798,092,000. BlackRock Inc. owned 5.79% of Republic Services as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Brighton Jones LLC raised its holdings in shares of Republic Services by 75.8% in the fourth quarter. Brighton Jones LLC now owns 19,822 shares of the business services provider's stock valued at $3,988,000 after purchasing an additional 8,547 shares during the last quarter. Federated Hermes Inc. lifted its holdings in Republic Services by 23.2% during the second quarter. Federated Hermes Inc. now owns 17,553 shares of the business services provider's stock valued at $4,329,000 after purchasing an additional 3,303 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in Republic Services by 3.6% in the 2nd quarter. NewEdge Advisors LLC now owns 29,690 shares of the business services provider's stock worth $7,322,000 after buying an additional 1,044 shares during the period. Treasurer of the State of North Carolina boosted its holdings in shares of Republic Services by 0.7% in the second quarter. Treasurer of the State of North Carolina now owns 94,626 shares of the business services provider's stock worth $23,336,000 after acquiring an additional 688 shares during the period. Finally, Ieq Capital LLC boosted its stake in Republic Services by 68.4% in the 2nd quarter. Ieq Capital LLC now owns 11,643 shares of the business services provider's stock worth $2,871,000 after purchasing an additional 4,729 shares during the period. 57.73% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

RSG has been the subject of a number of recent analyst reports. Canadian Imperial Bank of Commerce restated an "outperform" rating and set a $249.00 price target on shares of Republic Services in a research report on Friday, May 8th. UBS Group lifted their price target on shares of Republic Services from $233.00 to $235.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. Citigroup boosted their target price on Republic Services from $247.00 to $259.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Weiss Ratings reissued a "hold (c+)" rating on shares of Republic Services in a research report on Friday, July 24th. Finally, Morgan Stanley set a $232.00 target price on Republic Services in a research note on Friday, August 7th. Eleven analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $245.26.

Insider Activity at Republic Services

In related news, major shareholder Cascade Investment, L.L.C. acquired 206,800 shares of the firm's stock in a transaction dated Monday, August 17th. The shares were purchased at an average price of $214.92 per share, with a total value of $44,445,456.00. Following the completion of the purchase, the insider directly owned 112,024,656 shares of the company's stock, valued at $24,076,339,067.52. This represents a 0.18% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Sandra M. Volpe sold 1,800 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $211.28, for a total transaction of $380,304.00. Following the sale, the director owned 58 shares in the company, valued at approximately $12,254.24. The trade was a 96.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have purchased 1,220,674 shares of company stock valued at $263,117,588 over the last 90 days. 0.12% of the stock is currently owned by company insiders.

Republic Services Stock Up 0.9%

NYSE:RSG opened at $217.17 on Wednesday. Republic Services, Inc. has a fifty-two week low of $196.41 and a fifty-two week high of $238.62. The firm has a market cap of $66.50 billion, a P/E ratio of 30.76, a P/E/G ratio of 3.51 and a beta of 0.40. The firm has a 50-day simple moving average of $214.36 and a two-hundred day simple moving average of $214.94. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.64 and a current ratio of 0.64.

Republic Services (NYSE:RSG - Get Free Report) last issued its earnings results on Thursday, August 6th. The business services provider reported $1.85 EPS for the quarter, beating the consensus estimate of $1.81 by $0.04. Republic Services had a return on equity of 18.69% and a net margin of 12.94%.The business had revenue of $4.43 billion for the quarter, compared to the consensus estimate of $4.36 billion. During the same period last year, the business posted $1.77 EPS. The company's revenue was up 4.6% compared to the same quarter last year. Republic Services has set its FY 2026 guidance at 7.230-7.280 EPS. Analysts predict that Republic Services, Inc. will post 7.27 earnings per share for the current fiscal year.

Republic Services Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Friday, October 2nd will be given a $0.67 dividend. The ex-dividend date of this dividend is Friday, October 2nd. This is a positive change from Republic Services's previous quarterly dividend of $0.62. This represents a $2.68 annualized dividend and a yield of 1.2%. Republic Services's payout ratio is 35.41%.

Republic Services Company Profile

Republic Services, Inc is a leading provider of non-hazardous solid waste and recycling services in the United States. The company offers a broad range of waste management solutions to residential, commercial, industrial and municipal customers, positioning itself as a full-service partner for everyday waste collection as well as specialized disposal needs.

Republic's core operations include curbside and commercial collection, transfer and hauling, materials recovery and recycling facilities, and landfill disposal.

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