Waste Management, Inc. $WM Shares Sold by Diamond Hill Capital Management LLC Investment Advisor

Key Points

• Diamond Hill Capital Management cut its Waste Management stake by 25.5% in the second quarter, selling 402,925 shares and retaining 1.18 million shares worth about $262.1 million. Institutional investors and hedge funds collectively own 80.4% of WM.
• Analysts remain broadly positive, with 13 Buy ratings and seven Holds, producing a “Moderate Buy” consensus and an average price target of $258.89.
• Waste Management’s latest quarterly results exceeded expectations, with EPS of $2.02 versus the $1.98 consensus and revenue of $6.68 billion, up 4% year over year. Shares opened at $225.05, though valuation concerns remain given the stock’s elevated earnings multiples.

Diamond Hill Capital Management LLC Investment Advisor reduced its position in shares of Waste Management, Inc. (NYSE:WM - Free Report) by 25.5% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,176,163 shares of the business services provider's stock after selling 402,925 shares during the period. Waste Management comprises about 2.1% of Diamond Hill Capital Management LLC Investment Advisor's investment portfolio, making the stock its 9th biggest position. Diamond Hill Capital Management LLC Investment Advisor owned 0.29% of Waste Management worth $262,143,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Financial Network Wealth Advisors LLC increased its holdings in shares of Waste Management by 55.3% during the fourth quarter. Financial Network Wealth Advisors LLC now owns 132 shares of the business services provider's stock worth $29,000 after buying an additional 47 shares in the last quarter. RHL Group LLC acquired a new position in shares of Waste Management in the 4th quarter worth approximately $29,000. Mcguire Capital Advisors Inc. bought a new stake in Waste Management during the 4th quarter worth approximately $29,000. JPL Wealth Management LLC bought a new stake in Waste Management during the 3rd quarter worth approximately $30,000. Finally, Main Street Group LTD acquired a new stake in Waste Management during the 1st quarter valued at $31,000. 80.40% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts have commented on the company. Citigroup boosted their price objective on Waste Management from $263.00 to $269.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. Barclays raised their target price on Waste Management from $270.00 to $277.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. UBS Group lifted their price target on Waste Management from $265.00 to $270.00 and gave the company a "buy" rating in a report on Tuesday, August 4th. Wells Fargo & Company reduced their price target on shares of Waste Management from $273.00 to $268.00 and set an "overweight" rating on the stock in a research report on Thursday, April 30th. Finally, Royal Bank Of Canada increased their price objective on shares of Waste Management from $240.00 to $244.00 and gave the stock a "sector perform" rating in a report on Thursday, July 30th. Thirteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, Waste Management currently has an average rating of "Moderate Buy" and a consensus target price of $258.89.

Waste Management Stock Up 0.7%

NYSE WM opened at $225.05 on Thursday. The stock has a fifty day moving average of $227.84 and a 200-day moving average of $227.77. The stock has a market capitalization of $89.95 billion, a P/E ratio of 31.88, a price-to-earnings-growth ratio of 2.75 and a beta of 0.44. Waste Management, Inc. has a 52 week low of $194.11 and a 52 week high of $248.13. The company has a debt-to-equity ratio of 2.24, a quick ratio of 0.87 and a current ratio of 0.91.

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

Waste Management News Summary

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 Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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