Waste Connections (NYSE:WCN) Reaches New 1-Year High on Earnings Beat

Key Points

• Waste Connections exceeded quarterly expectations: Earnings came in at $1.58 per share versus the $1.52 consensus, while revenue rose 23.8% year over year to $2.64 billion. The strong results pushed the stock to a new 52-week high.
• Management raised its outlook amid improving operations: Higher landfill activity, stronger solid-waste volumes and increased commodity-related revenue supported the improved full-year forecast.
• The company increased its dividend by 10%: The quarterly payout rose from $0.35 to $0.385 per share, equal to $1.54 annually and a yield of approximately 0.9%, though the stock’s elevated valuation may leave less room for disappointment.

Waste Connections, Inc. (NYSE:WCN - Get Free Report) reached a new 52-week high on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $179.57 and last traded at $180.1170, with a volume of 165,673 shares changing hands. The stock had previously closed at $168.28.

The business services provider reported $1.58 earnings per share for the quarter, beating analysts' consensus estimates of $1.52 by $0.06. The company had revenue of $2.64 billion during the quarter, compared to analysts' expectations of $2.60 billion. Waste Connections had a net margin of 10.86% and a return on equity of 17.31%. The firm's revenue was up 23.8% on a year-over-year basis.

Waste Connections Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 5th will be issued a $0.3850 dividend. This is a boost from Waste Connections's previous quarterly dividend of $0.35. This represents a $1.54 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, November 5th. Waste Connections's dividend payout ratio is presently 33.73%.

Key Headlines Impacting Waste Connections

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

• Positive Sentiment: Q3 earnings and revenue beat estimates: Adjusted earnings rose to $1.58 per share, above the $1.52–$1.54 analyst estimates and up from $1.44 a year earlier. Revenue reached approximately $2.64 billion, exceeding expectations near $2.60–$2.61 billion and increasing 23.8% year over year. Waste Connections Reports Third Quarter 2026 Results and Raises Full Year Outlook
• Positive Sentiment: Improving operating trends lifted the outlook: Management cited stronger operational execution, improving landfill activity, a 70-basis-point sequential improvement in solid-waste volumes, and higher commodity-related revenue. The company also raised its full-year outlook, signaling confidence in continued growth. Waste Connections raises outlook as landfill volumes improve
• Positive Sentiment: Dividend increased 10%: Waste Connections raised its quarterly dividend from $0.35 to $0.385 per share, equivalent to $1.54 annually and a yield of approximately 0.9%. The dividend is payable November 19 to shareholders of record November 5. Waste Connections Announces 10.0% Increase in Quarterly Dividend
• Neutral Sentiment: Valuation remains demanding: WCN trades at roughly 40.6 times earnings, with a PEG ratio near 3.0. Strong results and guidance support the premium, but the valuation leaves less room for disappointment.
• Negative Sentiment: Insider selling is a cautionary signal: Recent reported insider transactions show substantially more sales than purchases over the past six months, although such activity may reflect compensation or portfolio diversification rather than a change in business expectations.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on WCN shares. Citigroup lowered their target price on Waste Connections from $182.00 to $175.00 and set a "neutral" rating for the company in a report on Thursday, October 15th. Canadian Imperial Bank of Commerce set a $184.00 price target on Waste Connections and gave the stock an "outperformer" rating in a research report on Thursday, October 8th. Raymond James Financial set a $189.00 price target on Waste Connections in a report on Friday, October 9th. Morgan Stanley reduced their price objective on Waste Connections from $205.00 to $195.00 and set an "overweight" rating for the company in a research report on Tuesday, October 13th. Finally, Wolfe Research initiated coverage on Waste Connections in a research report on Tuesday, September 15th. They set an "outperform" rating and a $204.00 price objective for the company. One 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 MarketBeat, Waste Connections currently has a consensus rating of "Moderate Buy" and an average target price of $198.61.

Insider Buying and Selling at Waste Connections

In related news, SVP Philip Rivard sold 2,500 shares of Waste Connections stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $166.57, for a total value of $416,425.00. Following the transaction, the senior vice president directly owned 734 shares in the company, valued at $122,262.38. The trade was a 77.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Robert Cloninger sold 2,811 shares of Waste Connections stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $171.02, for a total value of $480,737.22. Following the completion of the transaction, the senior vice president directly owned 11,666 shares in the company, valued at $1,995,119.32. This represents a 19.42% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.27% of the company's stock.

Institutional Investors Weigh In On Waste Connections

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

Waste Connections Trading Up 7.0%

The company's fifty day moving average price is $160.94 and its two-hundred day moving average price is $161.42. The company has a current ratio of 0.66, a quick ratio of 0.66 and a debt-to-equity ratio of 1.17. The firm has a market cap of $45.21 billion, a P/E ratio of 43.41, a price-to-earnings-growth ratio of 2.97 and a beta of 0.49.

About Waste Connections

Waste Connections, Inc is a North American provider of solid waste collection, transfer, disposal and recycling services. The company serves residential, commercial, industrial and construction customers, offering scheduled and on-demand collection as well as waste management solutions tailored to municipalities and businesses.

Its operations include local collection fleets, transfer stations, recycling and resource-recovery facilities, and landfills. Waste Connections also provides non-hazardous oilfield waste services, including the collection, transportation, treatment and disposal of waste generated by energy-production activities.

Founded in 1997, Waste Connections has grown through a combination of internal development and acquisitions.

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