GFL Environmental Inc. (NYSE:GFL) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Fifteen brokerages give GFL Environmental a consensus “Moderate Buy” rating, with 11 buys, two holds and two sells. The average 12-month price target is $54.75 versus a recent share price of $41.19.
• Quarterly results were mixed: GFL reported revenue of $1.37 billion, up 16.3% year over year and above estimates, but earnings per share of $0.14 fell short of the $0.17 consensus.
• Institutional ownership remains substantial: Hedge funds and other institutions own 64.7% of the company, with several major investors increasing their stakes. GFL also pays a small quarterly dividend of $0.0169 per share, yielding about 0.2% annually.

GFL Environmental Inc. (NYSE:GFL - Get Free Report) has received a consensus rating of "Moderate Buy" from the fifteen ratings firms that are presently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation, two have assigned a hold recommendation and eleven have given a buy recommendation to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $54.75.

A number of analysts recently weighed in on the stock. Scotiabank reaffirmed an "outperform" rating on shares of GFL Environmental in a research note on Friday, July 31st. Zacks Research downgraded shares of GFL Environmental from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 22nd. Canadian Imperial Bank of Commerce restated an "outperform" rating on shares of GFL Environmental in a report on Friday, July 31st. Weiss Ratings raised shares of GFL Environmental from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 29th. Finally, Citigroup set a $51.00 price objective on shares of GFL Environmental and gave the company a "buy" rating in a research note on Monday, July 6th.

GFL Environmental Trading Down 0.3%

Shares of NYSE GFL opened at $41.19 on Tuesday. GFL Environmental has a twelve month low of $33.33 and a twelve month high of $51.51. The firm has a market cap of $14.87 billion, a PE ratio of -77.72, a price-to-earnings-growth ratio of 2.68 and a beta of 0.68. The business has a fifty day simple moving average of $38.21 and a two-hundred day simple moving average of $40.03. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 1.34.

GFL Environmental (NYSE:GFL - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.17 by ($0.03). The firm had revenue of $1.37 billion for the quarter, compared to the consensus estimate of $1.33 billion. GFL Environmental had a positive return on equity of 4.14% and a negative net margin of 3.28%.GFL Environmental's quarterly revenue was up 16.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.26 EPS. Analysts expect that GFL Environmental will post 0.65 earnings per share for the current fiscal year.

GFL Environmental Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Monday, July 13th were issued a dividend of $0.0169 per share. The ex-dividend date was Monday, July 13th. This represents a $0.07 dividend on an annualized basis and a yield of 0.2%. GFL Environmental's dividend payout ratio is currently -13.21%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Capital Research Global Investors lifted its stake in shares of GFL Environmental by 17.6% during the 4th quarter. Capital Research Global Investors now owns 21,863,632 shares of the company's stock worth $939,043,000 after purchasing an additional 3,267,936 shares during the last quarter. Vanguard Group Inc. grew its stake in GFL Environmental by 0.9% in the fourth quarter. Vanguard Group Inc. now owns 11,156,675 shares of the company's stock valued at $479,255,000 after purchasing an additional 97,020 shares during the last quarter. Pictet Asset Management Holding SA grew its stake in GFL Environmental by 2.2% in the fourth quarter. Pictet Asset Management Holding SA now owns 8,511,198 shares of the company's stock valued at $365,595,000 after purchasing an additional 185,169 shares during the last quarter. CIBC Asset Management Inc raised its holdings in GFL Environmental by 25.8% in the fourth quarter. CIBC Asset Management Inc now owns 5,101,264 shares of the company's stock worth $219,360,000 after purchasing an additional 1,047,180 shares in the last quarter. Finally, Maverick Capital Ltd. raised its holdings in GFL Environmental by 216.5% in the fourth quarter. Maverick Capital Ltd. now owns 5,023,417 shares of the company's stock worth $215,761,000 after purchasing an additional 3,436,419 shares in the last quarter. 64.70% of the stock is currently owned by hedge funds and other institutional investors.

About GFL Environmental

GFL Environmental Inc is a leading North American provider of diversified environmental services, offering comprehensive solutions across solid waste management, liquid waste management, soil remediation and infrastructure services. The company's core business activities include residential, commercial and industrial waste collection, recycling, composting and landfill management. In addition to traditional waste services, GFL provides specialized liquid waste hauling, treatment and disposal services as well as environmental consulting to support industrial and municipal clients in meeting regulatory and sustainability goals.

Founded in 2007 by entrepreneur Patrick Dovigi, GFL Environmental has pursued an aggressive growth strategy driven by strategic acquisitions and organic expansion.

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