GFL Environmental (NYSE:GFL) Shares Gap Down - What's Next?

Key Points

• GFL shares gapped down at the open from $43.08 to $41.19 and were last trading around $40.16 on heavy volume (~480,735 shares), signaling near-term selling pressure.
• The company reported a mixed quarter—$0.26 EPS vs. $0.14 expected (beat) but revenue of $1.23B vs. $1.67B expected (miss)—and shows a low current ratio (0.58) with a market cap of $14.04B and a PE of 5.77.
• Analysts have a consensus of "Moderate Buy" with an average price target of $56.78; several firms raised targets while Weiss downgraded the stock to a hold.

GFL Environmental Inc. (NYSE:GFL - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $43.08, but opened at $41.19. GFL Environmental shares last traded at $40.1580, with a volume of 480,735 shares.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on GFL. Citigroup cut their price target on shares of GFL Environmental from $58.00 to $56.00 and set a "buy" rating on the stock in a report on Friday, January 16th. Royal Bank Of Canada boosted their price target on shares of GFL Environmental from $59.00 to $60.00 and gave the stock an "outperform" rating in a report on Thursday, February 12th. Barclays boosted their price target on shares of GFL Environmental from $62.00 to $63.00 and gave the stock an "overweight" rating in a report on Thursday, February 12th. Weiss Ratings downgraded shares of GFL Environmental from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, February 9th. Finally, JPMorgan Chase & Co. boosted their price target on shares of GFL Environmental from $48.00 to $49.00 and gave the stock a "neutral" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $56.78.

GFL Environmental Price Performance

The company has a current ratio of 0.58, a quick ratio of 0.58 and a debt-to-equity ratio of 1.05. The business has a 50-day moving average price of $42.93 and a 200 day moving average price of $43.86. The stock has a market cap of $14.04 billion, a PE ratio of 5.77, a PEG ratio of 3.32 and a beta of 0.84.

GFL Environmental (NYSE:GFL - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.14 by $0.12. The business had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.67 billion. GFL Environmental had a net margin of 56.61% and a return on equity of 3.66%. The company's revenue was up 7.3% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.58) earnings per share. As a group, research analysts forecast that GFL Environmental Inc. will post 0.58 earnings per share for the current fiscal year.

GFL Environmental Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Monday, April 13th will be given a dividend of $0.0169 per share. This is a boost from GFL Environmental's previous quarterly dividend of $0.02. This represents a $0.07 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date is Monday, April 13th. GFL Environmental's dividend payout ratio (DPR) is 0.88%.

Hedge Funds Weigh In On GFL Environmental

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GFL. Jones Financial Companies Lllp boosted its position in GFL Environmental by 684.5% during the first quarter. Jones Financial Companies Lllp now owns 2,573 shares of the company's stock worth $124,000 after purchasing an additional 2,245 shares during the period. Goldman Sachs Group Inc. boosted its position in GFL Environmental by 94.1% during the first quarter. Goldman Sachs Group Inc. now owns 714,438 shares of the company's stock worth $34,514,000 after purchasing an additional 346,394 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in GFL Environmental by 3.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 458,936 shares of the company's stock worth $22,171,000 after purchasing an additional 14,252 shares during the period. Invesco Ltd. boosted its position in GFL Environmental by 22.7% during the second quarter. Invesco Ltd. now owns 86,967 shares of the company's stock worth $4,388,000 after purchasing an additional 16,096 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its position in GFL Environmental by 43.1% during the second quarter. EverSource Wealth Advisors LLC now owns 727 shares of the company's stock worth $37,000 after purchasing an additional 219 shares during the period. Institutional investors own 64.70% of the company's stock.

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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