Varenne Capital Partners Acquires New Holdings in Waste Connections, Inc. $WCN

Key Points

• Varenne Capital Partners initiated a $5.7 million stake in Waste Connections during the second quarter, purchasing 34,303 shares. Institutional investors and hedge funds collectively own 86.09% of the company.
• Waste Connections exceeded quarterly expectations, reporting $1.50 in EPS versus the $1.35 consensus estimate and $2.56 billion in revenue, up 6.4% year over year.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $200.89, compared with the stock’s reported price of $164.85.

Varenne Capital Partners bought a new stake in Waste Connections, Inc. (NYSE:WCN - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 34,303 shares of the business services provider's stock, valued at approximately $5,714,000. Waste Connections makes up about 0.9% of Varenne Capital Partners' investment portfolio, making the stock its 20th largest position.

Several other hedge funds also recently bought and sold shares of WCN. XXEC Inc. acquired a new position in shares of Waste Connections in the 2nd quarter valued at $164,870,000. BlackRock Inc. acquired a new stake in Waste Connections during the 2nd quarter worth $1,061,947,000. Norges Bank acquired a new stake in Waste Connections during the 4th quarter worth $697,519,000. The Manufacturers Life Insurance Company bought a new position in Waste Connections during the second quarter worth about $589,671,000. Finally, Bank of America Corp DE bought a new position in Waste Connections during the second quarter worth about $510,526,000. 86.09% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, SVP Robert Cloninger sold 2,811 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $171.02, for a total value of $480,737.22. Following the completion of the sale, the senior vice president owned 11,666 shares of the company's stock, valued at approximately $1,995,119.32. This represents a 19.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Philip Rivard sold 2,500 shares of the business's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $166.57, for a total transaction of $416,425.00. Following the transaction, the senior vice president owned 734 shares in the company, valued at approximately $122,262.38. The trade was a 77.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.27% of the company's stock.

Analyst Ratings Changes

A number of research firms have issued reports on WCN. Weiss Ratings reissued a "hold (c)" rating on shares of Waste Connections in a research note on Friday, August 7th. TD Cowen reiterated a "buy" rating and set a $210.00 price objective (up from $200.00) on shares of Waste Connections in a report on Friday, July 24th. Canadian Imperial Bank of Commerce reiterated an "outperform" rating and set a $199.00 price objective on shares of Waste Connections in a report on Friday, July 24th. JPMorgan Chase & Co. decreased their price objective on Waste Connections from $210.00 to $195.00 and set an "overweight" rating for the company in a research report on Monday, July 13th. Finally, Citigroup increased their target price on Waste Connections from $180.00 to $182.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $200.89.

Waste Connections Price Performance

Shares of WCN opened at $164.85 on Monday. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 1.17. Waste Connections, Inc. has a twelve month low of $146.89 and a twelve month high of $181.28. The stock has a market capitalization of $41.47 billion, a P/E ratio of 39.72, a P/E/G ratio of 2.83 and a beta of 0.48. The company has a 50 day moving average of $167.96 and a 200-day moving average of $163.08.

Waste Connections (NYSE:WCN - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The business services provider reported $1.50 EPS for the quarter, topping the consensus estimate of $1.35 by $0.15. The business had revenue of $2.56 billion during the quarter, compared to analysts' expectations of $2.51 billion. Waste Connections had a net margin of 10.86% and a return on equity of 17.31%. The firm's revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.29 earnings per share. As a group, equities research analysts forecast that Waste Connections, Inc. will post 5.62 EPS for the current fiscal year.

Waste Connections Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Thursday, August 6th were issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 0.8%. The ex-dividend date was Thursday, August 6th. Waste Connections's dividend payout ratio is presently 33.73%.

About Waste Connections

Waste Connections NYSE: WCN is a North American integrated waste services company that provides a range of solid waste and environmental services to municipal, commercial, industrial and residential customers. The company offers collection, transportation, transfer, disposal and recycling services, and operates an extensive network of transfer stations and disposal facilities. Waste Connections positions itself as a provider of infrastructure-driven waste solutions across many regions of the United States and Canada.

The company's operating activities include routine curbside and commercial collection, roll-off and container services, operation of landfills and transfer stations, and recycling and resource recovery programs.

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