Waste Connections, Inc. $WCN Stock: EULAV Asset Management Reduces Holdings

Key Points

• EULAV Asset Management reduced its Waste Connections stake by 6.3% in the third quarter, selling 21,415 shares and retaining 321,047 shares valued at approximately $49.4 million.
• Institutional ownership remains high at 86.09%, although insider selling was also reported as two senior vice presidents sold shares, reducing their holdings by 19.42% and 77.30%, respectively.
• Waste Connections reported stronger-than-expected third-quarter results, with adjusted EPS of $1.58 and revenue of $2.64 billion, while analysts maintained a generally bullish outlook and the company raised its quarterly dividend 10% to $0.385 per share.

EULAV Asset Management lowered its position in shares of Waste Connections, Inc. (NYSE:WCN - Free Report) by 6.3% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 321,047 shares of the business services provider's stock after selling 21,415 shares during the quarter. Waste Connections comprises 1.8% of EULAV Asset Management's investment portfolio, making the stock its 13th biggest holding. EULAV Asset Management owned about 0.13% of Waste Connections worth $49,419,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Citizens Financial Group Inc. RI grew its stake in shares of Waste Connections by 37.4% in the 3rd quarter. Citizens Financial Group Inc. RI now owns 8,320 shares of the business services provider's stock valued at $1,281,000 after buying an additional 2,266 shares during the period. Middleton & Co. Inc. MA raised its holdings in shares of Waste Connections by 11.9% in the third quarter. Middleton & Co. Inc. MA now owns 46,856 shares of the business services provider's stock valued at $7,213,000 after purchasing an additional 4,992 shares during the last quarter. Carderock Capital Management Inc. lifted its position in shares of Waste Connections by 1.3% during the 3rd quarter. Carderock Capital Management Inc. now owns 35,474 shares of the business services provider's stock worth $5,461,000 after buying an additional 447 shares in the last quarter. MBL Wealth LLC lifted its holdings in Waste Connections by 93.6% during the third quarter. MBL Wealth LLC now owns 3,384 shares of the business services provider's stock worth $521,000 after acquiring an additional 1,636 shares during the period. Finally, Lmcg Investments LLC boosted its holdings in shares of Waste Connections by 11.4% in the 3rd quarter. Lmcg Investments LLC now owns 62,580 shares of the business services provider's stock worth $9,633,000 after buying an additional 6,388 shares during the last quarter. 86.09% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, SVP Robert Cloninger sold 2,811 shares of the company's 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 sale, the senior vice president owned 11,666 shares in the company, valued at $1,995,119.32. This represents a 19.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Philip Rivard sold 2,500 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $166.57, for a total value of $416,425.00. Following the completion of the sale, 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 disclosure for this sale is available in the SEC filing. Insiders own 0.27% of the company's stock.

Trending Headlines about Waste Connections

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%

Wall Street Analyst Weigh In

A number of research firms have weighed in on WCN. Wells Fargo & Company boosted their target price on shares of Waste Connections from $187.00 to $211.00 and gave the company an "overweight" rating in a research note on Friday. JPMorgan Chase & Co. reduced their target price on Waste Connections from $195.00 to $180.00 and set an "overweight" rating for the company in a report on Thursday, October 8th. Scotiabank reiterated an "outperform" rating and set a $201.00 price target on shares of Waste Connections in a research report on Friday. Raymond James Financial set a $189.00 target price on shares of Waste Connections in a research report on Friday, October 9th. Finally, TD Cowen reiterated a "buy" rating and set a $215.00 price target (up from $210.00) on shares of Waste Connections in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Waste Connections presently has an average rating of "Moderate Buy" and a consensus price target of $202.39.

Waste Connections Price Performance

WCN stock opened at $186.48 on Monday. Waste Connections, Inc. has a 12-month low of $146.89 and a 12-month high of $187.27. The stock has a market capitalization of $46.72 billion, a price-to-earnings ratio of 41.72, a PEG ratio of 3.35 and a beta of 0.49. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 1.20. The firm's 50-day moving average price is $161.75 and its two-hundred day moving average price is $161.71.

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

Waste Connections Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 5th will be paid a $0.3850 dividend. This represents a $1.54 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 5th. This is a boost from Waste Connections's previous quarterly dividend of $0.35. Waste Connections's dividend payout ratio (DPR) is 31.32%.

Waste Connections 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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