Republic Services, Inc. $RSG Shares Bought by Alyeska Investment Group L.P.

Key Points

• Alyeska Investment Group increased its Republic Services stake by 16.3% in the second quarter, acquiring 155,046 shares and bringing its holdings to 1.1 million shares worth approximately $235.3 million.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating from 22 analysts and an average price target of $245.26. However, Republic Services trades at a premium valuation of roughly 31 times earnings.
• Republic Services reported quarterly revenue growth of 4.6% and an earnings beat, while raising its quarterly dividend to $0.67 per share from $0.62, equivalent to a 1.2% annual yield.

Alyeska Investment Group L.P. lifted its stake in Republic Services, Inc. (NYSE:RSG - Free Report) by 16.3% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,104,254 shares of the business services provider's stock after purchasing an additional 155,046 shares during the period. Republic Services comprises about 0.6% of Alyeska Investment Group L.P.'s holdings, making the stock its 29th largest holding. Alyeska Investment Group L.P. owned about 0.36% of Republic Services worth $235,294,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Wealth Watch Advisors INC purchased a new position in Republic Services in the third quarter valued at approximately $26,000. Bell Investment Advisors Inc acquired a new position in shares of Republic Services in the 2nd quarter valued at $25,000. Laurel Wealth Advisors LLC acquired a new stake in shares of Republic Services during the fourth quarter worth about $25,000. Edmond DE Rothschild Holding S.A. purchased a new stake in shares of Republic Services in the 2nd quarter valued at about $27,000. Finally, Compass Financial Management LLC acquired a new stake in shares of Republic Services in the 2nd quarter valued at about $27,000. 57.73% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on RSG shares. UBS Group lifted their target price on shares of Republic Services from $233.00 to $235.00 and gave the company a "neutral" rating in a report on Tuesday, August 11th. Citigroup lifted their price objective on shares of Republic Services from $247.00 to $259.00 and gave the company a "buy" rating in a research note on Friday, July 10th. Morgan Stanley set a $232.00 price objective on shares of Republic Services in a research report on Friday, August 7th. Royal Bank Of Canada lifted their target price on shares of Republic Services from $265.00 to $267.00 and gave the company an "outperform" rating in a report on Friday, May 8th. Finally, Barclays lifted their price objective on 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 stock. Based on data from MarketBeat.com, Republic Services presently has an average rating of "Moderate Buy" and an average price target of $245.26.

Key Republic Services News

Here are the key news stories impacting Republic Services this week:

• Positive Sentiment: Cascade Investment continued its aggressive accumulation of RSG. The major shareholder purchased 284,600 shares on August 27 for approximately $62.5 million and 275,500 shares on August 26 for about $61.0 million. These purchases followed a $59.8 million acquisition on August 25 and a series of additional open-market buys. Recent disclosures indicate Cascade has bought more than 3.5 million shares worth approximately $764 million over six months, a potential signal of long-term confidence in Republic Services. Major Investment Powerhouse Makes Massive New Move Into Republic Services Stock
• Positive Sentiment: Analyst sentiment remains constructive. Republic Services carries a consensus “Moderate Buy” rating, with 12 Buy ratings and 10 Holds. The average price target is approximately $245, above recent trading levels, while Citigroup and RBC Capital Markets have set targets of $259 and $267, respectively. Republic Services Receives Consensus Rating of Moderate Buy
• Positive Sentiment: The dividend was raised. Republic Services increased its quarterly dividend to $0.67 from $0.62, equivalent to $2.68 annually and a yield of about 1.2%. The increase reinforces the company’s shareholder-return profile.
• Neutral Sentiment: Recent coverage also highlighted Republic Services as a participant in the broader circular-economy and recycling investment theme. The company’s latest quarter included revenue growth of 4.6% and an EPS beat, but those results were reported earlier and are likely already reflected in the valuation.
• Negative Sentiment: At roughly 31 times earnings and a PEG ratio above 3.5, RSG is priced at a premium. Some institutional investors reduced holdings recently, and UBS maintains a neutral rating, limiting the potential impact of the bullish signals.

Insider Activity

In other news, major shareholder Cascade Investment, L.L.C. bought 284,600 shares of Republic Services stock in a transaction on Thursday, August 27th. The shares were bought at an average price of $219.52 per share, with a total value of $62,475,392.00. Following the acquisition, the insider directly owned 113,935,127 shares in the company, valued at approximately $25,011,039,079.04. This represents a 0.25% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last quarter, insiders have bought 3,131,145 shares of company stock valued at $685,244,030. Corporate insiders own 0.12% of the company's stock.

Republic Services Price Performance

Shares of NYSE:RSG opened at $222.24 on Friday. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.64 and a current ratio of 0.64. The business's fifty day moving average price is $216.42 and its two-hundred day moving average price is $215.19. The stock has a market cap of $68.05 billion, a PE ratio of 31.48, a price-to-earnings-growth ratio of 3.68 and a beta of 0.40. Republic Services, Inc. has a one year low of $196.41 and a one year high of $235.18.

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

Republic Services Increases Dividend

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

Republic Services 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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