Waste Connections, Inc. $WCN Shares Acquired by Robeco Institutional Asset Management B.V.

Key Points

• Robeco Institutional Asset Management increased its Waste Connections stake by 25.7% in the third quarter, bringing its holdings to 29,119 shares valued at approximately $4.48 million. Institutional investors and hedge funds collectively own 86.09% of the company.
• Waste Connections exceeded quarterly expectations, reporting $1.58 in EPS versus the $1.52 consensus and $2.64 billion in revenue, up 23.8% year over year.
• The company raised its quarterly dividend from $0.35 to $0.385 per share, while analysts maintained a broadly bullish view with a consensus “Moderate Buy” rating and an average price target of $202.39.

Robeco Institutional Asset Management B.V. increased its holdings in shares of Waste Connections, Inc. (NYSE:WCN - Free Report) by 25.7% during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 29,119 shares of the business services provider's stock after acquiring an additional 5,959 shares during the period. Robeco Institutional Asset Management B.V.'s holdings in Waste Connections were worth $4,482,000 as of its most recent SEC filing.

A number of other institutional investors have also recently modified their holdings of the business. XXEC Inc. acquired a new position in Waste Connections in the 2nd quarter worth about $164,870,000. BlackRock Inc. acquired a new stake in Waste Connections in the second quarter valued at approximately $1,061,947,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Waste Connections in the second quarter valued at approximately $589,671,000. Bank of America Corp DE acquired a new position in shares of Waste Connections during the 2nd quarter worth approximately $510,526,000. Finally, Wellington Management Group LLP acquired a new position in shares of Waste Connections during the 2nd quarter worth approximately $477,944,000. 86.09% of the stock is currently owned by institutional investors and hedge funds.

Waste Connections Price Performance

Shares of Waste Connections stock opened at $186.48 on Friday. The stock has a market capitalization of $46.72 billion, a P/E ratio of 41.72, a PEG ratio of 3.28 and a beta of 0.49. The business has a 50 day simple moving average of $161.75 and a two-hundred day simple moving average of $161.73. Waste Connections, Inc. has a 12 month low of $146.89 and a 12 month high of $187.27. The company has a debt-to-equity ratio of 1.20, a current ratio of 0.67 and a quick ratio of 0.66.

Waste Connections (NYSE:WCN - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The business services provider reported $1.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.52 by $0.06. Waste Connections had a return on equity of 17.76% and a net margin of 11.40%. The firm had revenue of $2.64 billion for the quarter, compared to analyst estimates of $2.60 billion. The firm's quarterly revenue was up 23.8% compared to the same quarter last year. As a group, analysts predict that Waste Connections, Inc. will post 5.70 EPS for the current fiscal year.

Waste Connections Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 5th will be paid a dividend of $0.3850 per share. This is a boost from Waste Connections's previous quarterly dividend of $0.35. The ex-dividend date of this dividend is Thursday, November 5th. This represents a $1.54 annualized dividend and a yield of 0.8%. Waste Connections's dividend payout ratio is presently 31.32%.

Waste Connections News Summary

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

• Positive Sentiment: Analysts raised price targets: Deutsche Bank lifted its target from $191 to $205 and maintained a “buy” rating. Wells Fargo raised its target from $187 to $211 and upgraded its stance to “overweight,” while Scotiabank increased its target from $193 to $201 and retained a “sector outperform” rating. The targets imply approximately 8% to 13% upside from the referenced share price.
• Positive Sentiment: Third-quarter results exceeded expectations: Waste Connections reported adjusted earnings of $1.58 per share, up from $1.44 a year earlier and ahead of the $1.52 consensus estimate. Revenue rose 23.8% year over year to $2.64 billion, also surpassing analyst expectations. Waste Connections Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Improved operating outlook: Management raised its outlook as landfill volumes improved, supporting expectations for continued revenue and profit growth. Acquisitions are also contributing to earnings growth and expanding the company’s disposal-services platform. Waste Connections Raises Outlook as Landfill Volumes Improve
• Positive Sentiment: Dividend increased 10%: Waste Connections raised its quarterly dividend to $0.385 per share from $0.35, equivalent to $1.54 annually. The increase signals confidence in cash flow and enhances shareholder returns. Waste Connections Raised Its Dividend 10%

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on WCN. Royal Bank Of Canada reissued an "outperform" rating and issued a $221.00 price target (up from $218.00) on shares of Waste Connections in a research note on Friday. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Waste Connections from $191.00 to $205.00 and gave the stock a "buy" rating in a research report on Friday. Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating and set a $207.00 price objective (up from $184.00) on shares of Waste Connections in a report on Friday. Morgan Stanley reaffirmed an "overweight" rating and set a $200.00 price objective (up from $195.00) on shares of Waste Connections in a report on Friday. Finally, Raymond James Financial set a $189.00 target price on shares of Waste Connections in a research report on Friday, October 9th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Waste Connections presently has a consensus rating of "Moderate Buy" and an average price target of $202.39.

Insiders Place Their Bets

In other news, SVP Robert Cloninger sold 2,811 shares of the stock in a transaction dated Tuesday, July 28th. The shares were 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 directly owned 11,666 shares in the company, valued at $1,995,119.32. This represents a 19.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Philip Rivard sold 2,500 shares of the firm's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $166.57, for a total transaction of $416,425.00. Following the completion of the transaction, the senior vice president directly owned 734 shares in the company, valued at approximately $122,262.38. This represents a 77.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.27% of the stock is owned by corporate insiders.

Waste Connections Company Profile

Waste Connections, Inc is a North American provider of solid waste collection, transfer, disposal and recycling services. The company serves residential, commercial, industrial and construction customers, offering scheduled and on-demand collection as well as waste management solutions tailored to municipalities and businesses.

Its operations include local collection fleets, transfer stations, recycling and resource-recovery facilities, and landfills. Waste Connections also provides non-hazardous oilfield waste services, including the collection, transportation, treatment and disposal of waste generated by energy-production activities.

Founded in 1997, Waste Connections has grown through a combination of internal development and acquisitions.

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