Waste Connections (NYSE:WCN) Stock Price Crosses Below Fifty Day Moving Average - Time to Sell?

Key Points

• Waste Connections shares fell below their 50-day moving average, trading as low as $149.39 and last changing hands around $150.63, compared with the $163.32 moving average.
• Despite the technical weakness, analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $202.42.
• The company recently beat quarterly earnings and revenue expectations, while paying a $0.35 quarterly dividend, equivalent to a 0.9% annual yield.

Waste Connections, Inc. (NYSE:WCN - Get Free Report)'s stock price crossed below its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $163.32 and traded as low as $149.39. Waste Connections shares last traded at $150.6310, with a volume of 1,818,077 shares.

Wall Street Analyst Weigh In

Several research firms have recently commented on WCN. UBS Group raised shares of Waste Connections from a "neutral" rating to a "buy" rating and upped their price objective for the company from $176.00 to $200.00 in a report on Friday, September 18th. TD Cowen restated a "buy" rating and issued a $210.00 price objective (up from $200.00) on shares of Waste Connections in a research report on Friday, July 24th. Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating and issued a $199.00 price target on shares of Waste Connections in a research note on Friday, July 24th. Wolfe Research began coverage on Waste Connections in a report on Tuesday, September 15th. They issued an "outperform" rating and a $204.00 price objective on the stock. Finally, Barclays raised their target price on shares of Waste Connections from $180.00 to $187.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 28th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $202.42.

Waste Connections Stock Performance

The firm has a market capitalization of $37.89 billion, a PE ratio of 36.30, a price-to-earnings-growth ratio of 2.64 and a beta of 0.49. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 1.17. The firm has a 50-day moving average price of $163.32 and a 200 day moving average price of $161.72.

Waste Connections (NYSE:WCN - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $1.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.35 by $0.15. Waste Connections had a net margin of 10.86% and a return on equity of 17.31%. The business had revenue of $2.56 billion for the quarter, compared to analysts' expectations of $2.51 billion. During the same quarter in the prior year, the company earned $1.29 earnings per share. The business's quarterly revenue was up 6.4% on a year-over-year basis. Research analysts expect that Waste Connections, Inc. will post 5.62 earnings per share for the current year.

Waste Connections Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were issued a dividend of $0.35 per share. The ex-dividend date was Thursday, August 6th. This represents a $1.40 annualized dividend and a yield of 0.9%. Waste Connections's dividend payout ratio is 33.73%.

Insider Buying and Selling

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

Institutional Trading of Waste Connections

Institutional investors and hedge funds have recently bought and sold shares of the business. Group One Trading LLC purchased a new stake in shares of Waste Connections in the second quarter valued at about $30,000. Whipplewood Advisors LLC lifted its holdings in shares of Waste Connections by 1,166.7% in the 1st quarter. Whipplewood Advisors LLC now owns 190 shares of the business services provider's stock valued at $31,000 after buying an additional 175 shares during the period. Western Wealth Management LLC purchased a new stake in shares of Waste Connections during the 1st quarter worth $41,000. Johnson Financial Group Inc. purchased a new stake in Waste Connections during the second quarter worth about $45,000. Finally, Wellington Altus USA Inc. boosted its stake in shares of Waste Connections by 205.6% during the 2nd quarter. Wellington Altus USA Inc. now owns 275 shares of the business services provider's stock worth $48,000 after acquiring an additional 185 shares in the last quarter. 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, recycling and resource recovery services. The company serves residential, commercial, industrial and construction customers through local operations and provides services under municipal and other contracted arrangements.

Its business includes curbside and commercial waste collection, transfer stations, solid waste landfills, recycling facilities and organics processing. Waste Connections also provides environmental services for energy-producing customers, including the management and disposal of non-hazardous oilfield waste, and operates resource recovery and renewable energy projects in connection with certain waste facilities.

Founded in 1997, Waste Connections serves communities across the United States and Canada.

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