California State Teachers Retirement System Boosts Position in Republic Services, Inc. $RSG

Key Points

• California State Teachers Retirement System dramatically increased its Republic Services stake by 49.5 million shares in the second quarter, bringing its ownership to 16.26%, or approximately $10.6 billion. Institutional investors collectively own 57.73% of the company.
• Republic Services exceeded quarterly expectations, reporting $1.85 in adjusted earnings per share and $4.43 billion in revenue, with revenue up 4.6% year over year. The company guided to fiscal 2026 EPS of $7.23–$7.28.
• The company raised its quarterly dividend from $0.62 to $0.67 per share, equivalent to an annualized $2.68 payout and a 1.2% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $245.26.

California State Teachers Retirement System raised its stake in Republic Services, Inc. (NYSE:RSG - Free Report) by 19,694.6% during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 49,796,796 shares of the business services provider's stock after purchasing an additional 49,545,228 shares during the period. California State Teachers Retirement System owned 16.26% of Republic Services worth $10,610,701,000 as of its most recent SEC filing.

A number of other hedge funds have also recently modified their holdings of RSG. BlackRock Inc. acquired a new position in Republic Services in the second quarter valued at $3,798,092,000. Bank of America Corp DE acquired a new stake in shares of Republic Services during the second quarter worth about $682,573,000. Norges Bank acquired a new stake in shares of Republic Services in the 4th quarter valued at about $617,165,000. Capital World Investors boosted its position in shares of Republic Services by 27.7% in the 4th quarter. Capital World Investors now owns 8,765,623 shares of the business services provider's stock valued at $1,857,698,000 after purchasing an additional 1,899,183 shares during the period. Finally, Morgan Stanley grew its stake in Republic Services by 38.6% during the 4th quarter. Morgan Stanley now owns 5,348,501 shares of the business services provider's stock worth $1,133,509,000 after buying an additional 1,490,719 shares during the last quarter. 57.73% of the stock is owned by hedge funds and other institutional investors.

Republic Services Trading Down 0.5%

NYSE:RSG opened at $221.69 on Wednesday. Republic Services, Inc. has a 12-month low of $196.41 and a 12-month high of $233.42. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 1.12. The stock's 50 day simple moving average is $217.91 and its 200-day simple moving average is $215.18. The firm has a market cap of $67.88 billion, a P/E ratio of 31.40, a PEG ratio of 3.69 and a beta of 0.40.

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

Republic Services Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Friday, October 2nd will be issued 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 dividend yield of 1.2%. Republic Services's payout ratio is presently 35.41%.

Insider Buying and Selling at Republic Services

In other news, major shareholder Cascade Investment, L.L.C. purchased 365,039 shares of the company's stock in a transaction dated Friday, September 4th. The shares were acquired at an average cost of $223.16 per share, for a total transaction of $81,462,103.24. Following the completion of the purchase, the insider directly owned 115,756,830 shares in the company, valued at $25,832,294,182.80. The trade was a 0.32% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders have bought a total of 4,952,848 shares of company stock valued at $1,091,421,414 over the last quarter. 0.12% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Citigroup boosted their price objective 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 raised shares of Republic Services from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, August 21st. Morgan Stanley set a $232.00 price target on shares of Republic Services in a research report on Friday, August 7th. UBS Group increased 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. Finally, Barclays upped their target price on shares of Republic Services from $233.00 to $240.00 and gave the company an "equal weight" rating in a report on Friday, August 7th. Twelve research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $245.26.

About Republic Services

Republic Services, Inc is a provider of non-hazardous solid waste collection, transfer, disposal and recycling services. The company serves residential, commercial, industrial and municipal customers, offering scheduled and on-demand waste pickup, roll-off containers, transfer-station services and landfill disposal.

Its recycling and environmental services include the collection and processing of recyclable materials, organics management, waste reduction programs and related sustainability solutions.

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