Capital Innovations LLC Purchases New Stake in Waste Management, Inc. $WM

Key Points

• Capital Innovations LLC opened a new position in Waste Management during the fourth quarter, buying 31,389 shares worth about $6.9 million. The stake represents roughly 2.0% of the firm’s holdings.
• Waste Management’s latest quarterly results topped earnings expectations, posting $1.81 EPS versus the $1.75 forecast, while revenue rose 3.5% year over year to $6.23 billion. The company also announced a quarterly dividend of $0.945 per share, payable June 18.
• Analysts remain broadly constructive on the stock, with a consensus rating of Moderate Buy and an average price target of $255.67. Despite that optimism, shares were down slightly and opened at $211.79.

Capital Innovations LLC purchased a new stake in Waste Management, Inc. (NYSE:WM - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 31,389 shares of the business services provider's stock, valued at approximately $6,896,000. Waste Management accounts for about 2.0% of Capital Innovations LLC's holdings, making the stock its 19th largest holding.

Several other hedge funds have also recently bought and sold shares of the business. Calton & Associates Inc. raised its holdings in Waste Management by 10.1% in the fourth quarter. Calton & Associates Inc. now owns 1,795 shares of the business services provider's stock valued at $394,000 after buying an additional 164 shares during the period. Natixis Advisors LLC raised its stake in shares of Waste Management by 22.4% during the fourth quarter. Natixis Advisors LLC now owns 704,977 shares of the business services provider's stock valued at $154,890,000 after purchasing an additional 129,124 shares during the period. Root Financial Partners LLC raised its stake in shares of Waste Management by 20.6% during the fourth quarter. Root Financial Partners LLC now owns 872 shares of the business services provider's stock valued at $192,000 after purchasing an additional 149 shares during the period. BNP Paribas raised its stake in shares of Waste Management by 6.0% during the fourth quarter. BNP Paribas now owns 46,843 shares of the business services provider's stock valued at $10,293,000 after purchasing an additional 2,647 shares during the period. Finally, Sage Investment Advisers LLC purchased a new stake in shares of Waste Management during the fourth quarter valued at approximately $1,554,000. Hedge funds and other institutional investors own 80.40% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. JPMorgan Chase & Co. lifted their price objective on shares of Waste Management from $265.00 to $270.00 and gave the company an "overweight" rating in a research note on Friday, April 10th. TD Cowen lifted their price objective on shares of Waste Management from $270.00 to $275.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Wells Fargo & Company dropped their price objective on shares of Waste Management from $273.00 to $268.00 and set an "overweight" rating on the stock in a research note on Thursday, April 30th. Barclays lifted their price objective on shares of Waste Management from $266.00 to $270.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. Finally, Robert W. Baird lifted their price objective on shares of Waste Management from $248.00 to $260.00 and gave the company an "outperform" rating in a research note on Thursday, April 16th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, Waste Management currently has a consensus rating of "Moderate Buy" and a consensus price target of $255.67.

Waste Management Stock Down 0.3%

Shares of NYSE:WM opened at $211.79 on Wednesday. The company has a current ratio of 0.93, a quick ratio of 0.89 and a debt-to-equity ratio of 2.22. The company has a fifty day simple moving average of $224.39 and a 200 day simple moving average of $224.27. The firm has a market cap of $85.05 billion, a PE ratio of 30.65, a price-to-earnings-growth ratio of 2.22 and a beta of 0.45. Waste Management, Inc. has a 12-month low of $194.11 and a 12-month high of $248.13.

Waste Management (NYSE:WM - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The business services provider reported $1.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.75 by $0.06. The business had revenue of $6.23 billion during the quarter, compared to analyst estimates of $6.28 billion. Waste Management had a net margin of 10.99% and a return on equity of 31.90%. The business's revenue was up 3.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.67 earnings per share. On average, equities research analysts anticipate that Waste Management, Inc. will post 8.15 EPS for the current fiscal year.

Waste Management Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Friday, June 5th will be paid a $0.945 dividend. This represents a $3.78 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Friday, June 5th. Waste Management's payout ratio is 54.70%.

Insiders Place Their Bets

In related news, COO John J. Morris sold 4,211 shares of Waste Management stock in a transaction on Monday, March 9th. The shares were sold at an average price of $243.38, for a total value of $1,024,873.18. Following the completion of the sale, the chief operating officer owned 99,929 shares in the company, valued at approximately $24,320,720.02. The trade was a 4.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Johnson Varkey sold 121 shares of Waste Management stock in a transaction on Monday, March 9th. The stock was sold at an average price of $245.27, for a total transaction of $29,677.67. Following the completion of the sale, the senior vice president owned 9,293 shares of the company's stock, valued at approximately $2,279,294.11. This trade represents a 1.29% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 12,494 shares of company stock valued at $3,054,863. Insiders own 0.18% of the company's stock.

Waste Management Company Profile

Waste Management, Inc NYSE: WM is a leading provider of integrated waste management and environmental services in North America. The company offers end-to-end solutions that span collection, transfer, disposal and recycling, along with landfill operations and related infrastructure. Headquartered in Houston, Texas, Waste Management serves a broad customer base that includes residential, commercial, industrial and municipal clients.

Core services include curbside and commercial waste collection, roll-off and temporary container services, materials recovery and recycling, and engineered landfill disposal.

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