Republic Services (NYSE:RSG) was downgraded by Zacks Investment Research from a "buy" rating to a "hold" rating in a report released on Wednesday, Zacks.com reports. They currently have a $128.00 price target on the business services provider's stock. Zacks Investment Research's price objective indicates a potential upside of 4.62% from the stock's previous close.
According to Zacks, "Republic Services' shares have outperformed its industry in the past year, partly due to earnings beat in the past four quarters and raised guidance. The company is focused on increasing its operational efficiency by shifting to compressed natural gas collection vehicles and converting rear-loading trucks to automated-side loaders to reduce costs. The company continues to grow internally with the help of long-term contracts for collection, recycling and disposal of solid waste materials. Consistency in dividend payments and share buybacks boost investors’ confidence and positively impact earnings per share. However, the company's operation in a highly-competitive solid waste industry is a concern. High debt may limit the company’s future expansion and worsen its risk profile. Seasoanlity continues to act as a major headwind."
A number of other analysts also recently commented on the stock. Morgan Stanley boosted their target price on shares of Republic Services from $126.00 to $134.00 and gave the stock an "overweight" rating in a report on Friday, July 30th. Royal Bank of Canada boosted their target price on shares of Republic Services from $111.00 to $118.00 and gave the stock a "sector perform" rating in a report on Friday, July 30th. They noted that the move was a valuation call. Raymond James reiterated an "outperform" rating and issued a $116.14 target price (down from $117.00) on shares of Republic Services in a report on Monday, July 26th. Oppenheimer boosted their target price on shares of Republic Services from $117.00 to $121.00 and gave the stock an "outperform" rating in a report on Friday, July 16th. Finally, The Goldman Sachs Group upgraded shares of Republic Services from a "buy" rating to a "conviction-buy" rating in a report on Tuesday, August 24th. Four analysts have rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $116.18.
Republic Services stock traded up $1.48 during midday trading on Wednesday, reaching $122.35. 16,047 shares of the stock traded hands, compared to its average volume of 1,158,377. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 1.01. The firm has a fifty day moving average price of $121.38 and a two-hundred day moving average price of $112.00. The firm has a market cap of $38.95 billion, a price-to-earnings ratio of 34.86, a PEG ratio of 2.88 and a beta of 0.71. Republic Services has a fifty-two week low of $86.18 and a fifty-two week high of $126.25.
Republic Services (NYSE:RSG) last issued its quarterly earnings results on Thursday, July 29th. The business services provider reported $1.09 earnings per share for the quarter, topping analysts' consensus estimates of $0.94 by $0.15. The company had revenue of $2.81 billion during the quarter, compared to analyst estimates of $2.72 billion. Republic Services had a net margin of 10.64% and a return on equity of 15.01%. Analysts anticipate that Republic Services will post 4.06 earnings per share for the current year.
In related news, CFO Brian M. Delghiaccio sold 2,074 shares of the company's stock in a transaction on Wednesday, July 7th. The shares were sold at an average price of $114.00, for a total transaction of $236,436.00. Following the completion of the transaction, the chief financial officer now directly owns 3,379 shares in the company, valued at approximately $385,206. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.20% of the stock is currently owned by corporate insiders.
Several hedge funds have recently made changes to their positions in RSG. Ameritas Investment Company LLC acquired a new position in shares of Republic Services in the 1st quarter valued at $26,000. Strategic Blueprint LLC acquired a new stake in shares of Republic Services during the 2nd quarter worth about $28,000. McIlrath & Eck LLC increased its position in shares of Republic Services by 61.4% during the 1st quarter. McIlrath & Eck LLC now owns 305 shares of the business services provider's stock worth $30,000 after purchasing an additional 116 shares in the last quarter. E Fund Management Co. Ltd. acquired a new stake in shares of Republic Services during the 1st quarter worth about $37,000. Finally, CSat Investment Advisory L.P. increased its position in shares of Republic Services by 37.0% during the 1st quarter. CSat Investment Advisory L.P. now owns 422 shares of the business services provider's stock worth $42,000 after purchasing an additional 114 shares in the last quarter. Institutional investors own 57.60% of the company's stock.
About Republic Services
Republic Services, Inc engages in the provision of services in the domestic non-hazardous solid waste industry. It provides integrated waste management services, which offers non-hazardous solid waste collection, transfer, recycling, disposal and energy services. The firm operates through the following segments: Group 1, Group 2, and Corporate Entities & Other.
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