Trust Co. of Vermont Makes New Investment in Waste Management, Inc. $WM

Key Points

• Trust Co. of Vermont acquired 30,592 Waste Management shares worth approximately $6.8 million in the second quarter. Institutional investors collectively own 80.4% of the company, with several major funds also increasing their positions.
• Waste Management reported quarterly EPS of $2.02, beating estimates of $1.98, while revenue rose 4% year over year to $6.68 billion, slightly below expectations.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $258.89 price target versus the stock’s $225.05 price. However, valuation remains a concern, as the shares trade at a relatively high earnings multiple near their 50- and 200-day moving averages.

Trust Co. of Vermont acquired a new stake in Waste Management, Inc. (NYSE:WM - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 30,592 shares of the business services provider's stock, valued at approximately $6,818,000.

Several other hedge funds have also added to or reduced their stakes in the business. Norges Bank acquired a new stake in Waste Management during the 4th quarter worth approximately $1,022,916,000. Corient Private Wealth LLC boosted its holdings in Waste Management by 279.0% during the fourth quarter. Corient Private Wealth LLC now owns 1,075,906 shares of the business services provider's stock worth $236,387,000 after purchasing an additional 792,037 shares during the last quarter. Diamant Asset Management Inc. grew its position in Waste Management by 23,051.5% in the first quarter. Diamant Asset Management Inc. now owns 770,945 shares of the business services provider's stock valued at $17,716,000 after purchasing an additional 767,615 shares in the last quarter. Balyasny Asset Management L.P. increased its stake in Waste Management by 3,209.2% in the 3rd quarter. Balyasny Asset Management L.P. now owns 681,366 shares of the business services provider's stock valued at $150,466,000 after buying an additional 660,776 shares during the last quarter. Finally, Vanguard Group Inc. increased its stake in Waste Management by 1.4% in the 4th quarter. Vanguard Group Inc. now owns 38,990,067 shares of the business services provider's stock valued at $8,566,508,000 after buying an additional 553,605 shares during the last quarter. Institutional investors and hedge funds own 80.40% of the company's stock.

Waste Management Price Performance

Shares of NYSE:WM opened at $225.05 on Thursday. The firm has a 50 day moving average of $227.84 and a 200-day moving average of $227.77. Waste Management, Inc. has a 12 month low of $194.11 and a 12 month high of $248.13. The company has a current ratio of 0.91, a quick ratio of 0.87 and a debt-to-equity ratio of 2.24. The stock has a market capitalization of $89.95 billion, a PE ratio of 31.88, a PEG ratio of 2.75 and a beta of 0.44.

Waste Management (NYSE:WM - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.02 earnings per share for the quarter, beating analysts' consensus estimates of $1.98 by $0.04. Waste Management had a net margin of 11.11% and a return on equity of 31.68%. The company had revenue of $6.68 billion for the quarter, compared to the consensus estimate of $6.71 billion. During the same period last year, the company posted $1.92 EPS. The firm's quarterly revenue was up 4.0% compared to the same quarter last year. On average, equities research analysts predict that Waste Management, Inc. will post 8.14 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Stifel Nicolaus upped their price objective on Waste Management from $252.00 to $261.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Scotiabank raised their target price on shares of Waste Management from $250.00 to $260.00 and gave the company a "sector perform" rating in a research note on Thursday, July 16th. Weiss Ratings upgraded shares of Waste Management from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, August 7th. Oppenheimer decreased their price objective on shares of Waste Management from $264.00 to $263.00 and set an "outperform" rating for the company in a research report on Wednesday, July 8th. Finally, Citigroup boosted their price objective on shares of Waste Management from $263.00 to $269.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. Thirteen analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Waste Management presently has a consensus rating of "Moderate Buy" and a consensus price target of $258.89.

Key Headlines Impacting Waste Management

Here are the key news stories impacting Waste Management this week:

• Positive Sentiment: Waste Management has generated a 58.6% total stock gain over the past five years, reflecting the company’s defensive business profile and relatively consistent long-term performance. Its discounted-cash-flow valuation was described as approximately in line with the share price, which may support the view that the stock is not materially overvalued under cash-flow assumptions. Where Does Waste Management (WM) Value Sit After A 59% Gain?
• Neutral Sentiment: Recent “waste management stocks” coverage provides general sector context but does not identify a new development specific to Waste Management that would materially change its earnings outlook. Waste Management Stocks To Consider - August 15th
• Negative Sentiment: The valuation analysis flags a low value score and indicates that earnings-based multiples place WM at a premium. With the stock trading near its 50-day and 200-day averages and at a forward earnings valuation that is not inexpensive, concerns about limited upside or elevated valuation could weigh on investor enthusiasm.

Waste Management 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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