Norges Bank Makes New Investment in Republic Services, Inc. $RSG

Key Points

• Norges Bank initiated a large new position in Republic Services during the fourth quarter, buying 2.91 million shares valued at about $617.2 million and ending with roughly 0.94% ownership.
• Republic Services reported better-than-expected quarterly results, with EPS of $1.70 versus estimates of $1.64 and revenue of $4.11 billion, up 2.6% from a year earlier.
• The company also declared a quarterly dividend of $0.625 per share, which annualizes to $2.50 and implies a yield of about 1.2%.

Norges Bank bought a new stake in Republic Services, Inc. (NYSE:RSG - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 2,912,119 shares of the business services provider's stock, valued at approximately $617,165,000. Norges Bank owned about 0.94% of Republic Services as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in the business. Eurizon Capital SGR S.p.A. bought a new stake in shares of Republic Services in the fourth quarter valued at approximately $13,626,000. Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. bought a new stake in shares of Republic Services in the fourth quarter valued at approximately $200,000. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund boosted its position in shares of Republic Services by 14.0% in the fourth quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund now owns 207,272 shares of the business services provider's stock valued at $43,927,000 after acquiring an additional 25,505 shares during the period. Jupiter Asset Management Ltd. boosted its position in shares of Republic Services by 10.1% in the fourth quarter. Jupiter Asset Management Ltd. now owns 126,088 shares of the business services provider's stock valued at $26,722,000 after acquiring an additional 11,563 shares during the period. Finally, Foundations Investment Advisors LLC boosted its position in shares of Republic Services by 16.9% in the fourth quarter. Foundations Investment Advisors LLC now owns 1,373 shares of the business services provider's stock valued at $291,000 after acquiring an additional 198 shares during the period. 57.73% of the stock is owned by institutional investors.

Republic Services Stock Down 0.1%

Shares of RSG stock opened at $200.32 on Monday. The stock has a market cap of $61.63 billion, a P/E ratio of 28.74, a price-to-earnings-growth ratio of 3.30 and a beta of 0.41. Republic Services, Inc. has a one year low of $196.41 and a one year high of $258.75. The stock has a fifty day moving average price of $211.11 and a 200 day moving average price of $214.88. The company has a debt-to-equity ratio of 1.11, a current ratio of 0.67 and a quick ratio of 0.67.

Republic Services (NYSE:RSG - Get Free Report) last issued its earnings results on Friday, May 8th. The business services provider reported $1.70 EPS for the quarter, topping the consensus estimate of $1.64 by $0.06. The firm had revenue of $4.11 billion during the quarter, compared to analysts' expectations of $4.10 billion. Republic Services had a return on equity of 18.57% and a net margin of 13.00%.Republic Services's quarterly revenue was up 2.6% compared to the same quarter last year. During the same period last year, the business earned $1.58 earnings per share. Analysts predict that Republic Services, Inc. will post 7.27 earnings per share for the current year.

Republic Services Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Thursday, July 2nd will be paid a dividend of $0.625 per share. This represents a $2.50 annualized dividend and a yield of 1.2%. The ex-dividend date is Thursday, July 2nd. Republic Services's dividend payout ratio is currently 36.15%.

Insider Transactions at Republic Services

In related news, major shareholder Cascade Investment, L.L.C. acquired 366,000 shares of the company's stock in a transaction on Wednesday, May 13th. The stock was purchased at an average cost of $202.24 per share, for a total transaction of $74,019,840.00. Following the completion of the purchase, the insider directly owned 110,315,982 shares of the company's stock, valued at $22,310,304,199.68. The trade was a 0.33% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders acquired 987,150 shares of company stock worth $202,366,682 in the last three months. Corporate insiders own 0.12% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Canadian Imperial Bank of Commerce reissued an "outperform" rating and issued a $249.00 price objective on shares of Republic Services in a research report on Friday, May 8th. JPMorgan Chase & Co. increased their price objective on Republic Services from $233.00 to $245.00 and gave the company a "neutral" rating in a research report on Friday, April 10th. Wells Fargo & Company increased their price objective on Republic Services from $238.00 to $252.00 and gave the company an "overweight" rating in a research report on Wednesday, March 18th. Barclays raised their target price on Republic Services from $227.00 to $233.00 and gave the stock an "equal weight" rating in a research report on Monday, May 11th. Finally, UBS Group reduced their target price on Republic Services from $240.00 to $223.00 and set a "neutral" rating for the company in a research report on Tuesday, May 12th. Eleven analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $245.15.

About Republic Services

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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