Waste Connections (NYSE:WCN) Reaches New 12-Month High - Here's Why

Key Points

• Waste Connections reached a new 52-week high, trading as high as $188.20, while analysts maintained a generally bullish outlook. The stock has a consensus “Moderate Buy” rating and an average price target of $203.22.
• The company beat quarterly expectations, reporting adjusted EPS of $1.58 versus the $1.52 consensus estimate and revenue of $2.64 billion, up 23.8% year over year.
• Waste Connections increased its quarterly dividend to $0.385 per share, representing an annualized dividend of $1.54 and a 0.8% yield; insiders, however, sold 5,500 shares worth about $973,635 over the past 90 days.

Waste Connections, Inc. (NYSE:WCN - Get Free Report) reached a new 52-week high during trading on Friday. The stock traded as high as $188.20 and last traded at $183.5120, with a volume of 78,886 shares trading hands. The stock had previously closed at $181.97.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Wolfe Research started coverage on shares of Waste Connections in a report on Tuesday, September 15th. They set an "outperform" rating and a $204.00 target price for the company. Wells Fargo & Company raised their price target on shares of Waste Connections from $187.00 to $211.00 and gave the stock an "overweight" rating in a report on Friday, October 23rd. Weiss Ratings raised shares of Waste Connections from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 15th. TD Cowen reaffirmed a "buy" rating and set a $215.00 target price (up from $210.00) on shares of Waste Connections in a research note on Friday, October 23rd. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $200.00 price objective (up from $195.00) on shares of Waste Connections in a research report on Friday, October 23rd. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Waste Connections currently has a consensus rating of "Moderate Buy" and an average price target of $203.22.

Waste Connections Stock Up 1.0%

The business's fifty day moving average is $163.05 and its two-hundred day moving average is $163.43. The stock has a market cap of $46.03 billion, a price-to-earnings ratio of 40.90, a PEG ratio of 3.29 and a beta of 0.49. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 1.20.

Waste Connections (NYSE:WCN - Get Free Report) last posted its quarterly earnings results on Wednesday, October 21st. The business services provider reported $1.58 EPS for the quarter, topping the consensus estimate of $1.52 by $0.06. Waste Connections had a net margin of 11.40% and a return on equity of 17.76%. The business had revenue of $2.64 billion during the quarter, compared to the consensus estimate of $2.60 billion. The business's revenue for the quarter was up 23.8% on a year-over-year basis. Equities analysts forecast that Waste Connections, Inc. will post 5.70 earnings per share for the current fiscal year.

Waste Connections Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, November 5th will be issued a dividend of $0.3850 per share. This is a positive change from Waste Connections's previous quarterly dividend of $0.35. The ex-dividend date of this dividend is Thursday, November 5th. This represents a $1.54 dividend on an annualized basis and a yield of 0.8%. Waste Connections's dividend payout ratio (DPR) is presently 31.32%.

Insider Buying and Selling

In other Waste Connections news, VP James Little sold 2,000 shares of the company's stock in a transaction on Tuesday, October 27th. The shares were sold at an average price of $185.22, for a total value of $370,440.00. Following the completion of the transaction, the vice president owned 32,395 shares in the company, valued at $6,000,201.90. This represents a 5.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Philip Rivard sold 2,500 shares of the firm's stock in a transaction that occurred 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 owned 734 shares in the company, valued at $122,262.38. This represents a 77.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 5,500 shares of company stock worth $973,635 over the last 90 days. 0.27% of the stock is owned by insiders.

Institutional Trading of Waste Connections

Several institutional investors and hedge funds have recently bought and sold shares of WCN. EverSource Wealth Advisors LLC increased its holdings in Waste Connections by 1.5% in the first quarter. EverSource Wealth Advisors LLC now owns 4,312 shares of the business services provider's stock valued at $701,000 after buying an additional 65 shares in the last quarter. AA Financial Advisors LLC increased its position in Waste Connections by 3.9% during the 3rd quarter. AA Financial Advisors LLC now owns 2,219 shares of the business services provider's stock worth $342,000 after purchasing an additional 84 shares in the last quarter. GAMMA Investing LLC grew its holdings in shares of Waste Connections by 2.0% during the second quarter. GAMMA Investing LLC now owns 5,030 shares of the business services provider's stock worth $838,000 after buying an additional 99 shares in the last quarter. Athena Wealth Management LLC boosted its position in Waste Connections by 6.7% during the third quarter. Athena Wealth Management LLC now owns 1,829 shares of the business services provider's stock worth $282,000 after acquiring an additional 115 shares during the last quarter. Finally, Private Advisor Group LLC grew its position in shares of Waste Connections by 9.2% in the first quarter. Private Advisor Group LLC now owns 1,519 shares of the business services provider's stock valued at $247,000 after purchasing an additional 128 shares during the period. Hedge funds and other institutional investors own 86.09% of the company's stock.

Waste Connections Company Profile

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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