Waste Connections, Inc. $WCN Stock: Sustainable Growth Advisers LP Cuts Holdings

Key Points

• Sustainable Growth Advisers LP reduced its Waste Connections stake by 27.9% in the third quarter, selling 30,682 shares and retaining 79,251 shares valued at approximately $12.2 million. Institutional investors and hedge funds collectively own 86.09% of the company.
• Analyst sentiment remains favorable overall, with one Strong Buy, 14 Buy and three Hold ratings; the consensus is “Moderate Buy” with an average price target of $198.61. However, several firms recently lowered their targets, including Citigroup to $175 and Morgan Stanley to $195.
• Waste Connections exceeded quarterly expectations, reporting $1.50 in EPS versus the $1.35 consensus and $2.56 billion in revenue, up 6.4% year over year. The company also pays a quarterly dividend of $0.35, equivalent to a 0.8% annual yield.

Sustainable Growth Advisers LP cut its stake in shares of Waste Connections, Inc. (NYSE:WCN - Free Report) by 27.9% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 79,251 shares of the business services provider's stock after selling 30,682 shares during the quarter. Sustainable Growth Advisers LP's holdings in Waste Connections were worth $12,199,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of WCN. Evolve Private Wealth LLC acquired a new stake in Waste Connections in the second quarter valued at approximately $1,022,000. Oppenheimer Asset Management Inc. bought a new stake in Waste Connections in the second quarter worth approximately $12,398,000. Varenne Capital Partners bought a new stake in Waste Connections in the second quarter worth approximately $5,714,000. Legacy Wealth Asset Management LLC grew its position in Waste Connections by 68.1% in the second quarter. Legacy Wealth Asset Management LLC now owns 15,966 shares of the business services provider's stock worth $2,661,000 after acquiring an additional 6,470 shares in the last quarter. Finally, Focus Partners Advisor Solutions LLC acquired a new position in shares of Waste Connections during the 2nd quarter worth $2,315,000. 86.09% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts have recently weighed in on WCN shares. Weiss Ratings restated a "hold (c)" rating on shares of Waste Connections in a report on Friday, August 7th. Barclays lifted their price objective on shares of Waste Connections from $180.00 to $187.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 28th. JPMorgan Chase & Co. decreased their price objective on shares of Waste Connections from $195.00 to $180.00 and set an "overweight" rating for the company in a report on Thursday, October 8th. Citigroup decreased their price objective on shares of Waste Connections from $182.00 to $175.00 and set a "neutral" rating for the company in a report on Thursday. Finally, Wolfe Research initiated coverage on shares of Waste Connections in a research report on Tuesday, September 15th. They set an "outperform" rating and a $204.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $198.61.

Waste Connections News Roundup

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

• Positive Sentiment: Bernstein initiated or reiterated a Buy rating on Waste Connections, providing a positive analyst endorsement. Waste Connections Receives a Buy from Bernstein
• Positive Sentiment: Zacks identified WCN as a top-ranked momentum stock, suggesting favorable recent price and trading trends that could attract growth and momentum investors. Waste Connections Is a Top-Ranked Momentum Stock
• Positive Sentiment: Waste Connections was featured among dividend stocks viewed as capable of continuing to grow while passing higher costs on to customers, reinforcing the appeal of its defensive, recurring-revenue business model. Dividend Stocks That Could Keep Growing
• Neutral Sentiment: Morgan Stanley lowered its price target to $195, but the revised target remains above the current trading level. The change signals more cautious valuation expectations rather than an outright bearish view. Morgan Stanley Cuts Waste Connections Stock Target
• Negative Sentiment: Citigroup reduced its price target from $182 to $175 and assigned a Neutral rating, limiting the perceived near-term upside and adding pressure to the valuation narrative. Citigroup Lowers Waste Connections Price Target
• Negative Sentiment: Recent previews indicate that WCN may not have the combination of factors typically associated with an earnings beat, creating a risk ahead of next week’s results. Waste Connections Earnings Preview

Insider Buying and Selling at Waste Connections

In related news, SVP Robert Cloninger sold 2,811 shares of the company's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $171.02, for a total transaction of $480,737.22. Following the completion of the sale, the senior vice president directly 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 Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Philip Rivard sold 2,500 shares of the firm's stock in a transaction on Tuesday, August 18th. The shares were 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 owned 734 shares in the company, valued at $122,262.38. The trade was a 77.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.27% of the stock is currently owned by corporate insiders.

Waste Connections Stock Up 5.6%

Shares of WCN stock opened at $165.62 on Friday. The stock's 50 day simple moving average is $160.81 and its 200 day simple moving average is $161.29. Waste Connections, Inc. has a twelve month low of $146.89 and a twelve month high of $179.74. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.66 and a current ratio of 0.66. The company has a market capitalization of $41.57 billion, a price-to-earnings ratio of 39.91, a PEG ratio of 2.75 and a beta of 0.49.

Waste Connections (NYSE:WCN - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The business services provider reported $1.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.35 by $0.15. The firm had revenue of $2.56 billion during the quarter, compared to analysts' expectations of $2.51 billion. Waste Connections had a return on equity of 17.31% and a net margin of 10.86%. The company's revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.29 earnings per share. As a group, research analysts predict that Waste Connections, Inc. will post 5.65 EPS for the current year.

Waste Connections Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th were paid a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Thursday, August 6th. Waste Connections's payout ratio is presently 33.73%.

About Waste Connections

Waste Connections, Inc is a North American provider of solid waste collection, transfer, disposal, recycling and resource recovery services. The company serves residential, commercial, industrial and construction customers through local operations and provides services under municipal and other contracted arrangements.

Its business includes curbside and commercial waste collection, transfer stations, solid waste landfills, recycling facilities and organics processing. Waste Connections also provides environmental services for energy-producing customers, including the management and disposal of non-hazardous oilfield waste, and operates resource recovery and renewable energy projects in connection with certain waste facilities.

Founded in 1997, Waste Connections serves communities across the United States and Canada.

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