Waste Management (NYSE:WM) Stock Crosses Below Two Hundred Day Moving Average on Disappointing Earnings

Key Points

• Waste Management shares fell below their 200-day moving average after quarterly EPS of $2.15 missed analysts’ $2.18 estimate, although revenue rose 6.3% year over year to $6.85 billion and exceeded expectations.
• The company declared a quarterly dividend of $0.945 per share, equivalent to an annualized $3.78 dividend and a 1.7% yield, with a 53.54% payout ratio.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $256.06 versus the recent share price near $225; institutional investors own about 80.4% of the stock.

Waste Management, Inc. (NYSE:WM - Get Free Report)'s share price crossed below its 200-day moving average during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $225.01 and traded as low as $224.64. Waste Management shares last traded at $224.99, with a volume of 3,669,807 shares.

The business services provider reported $2.15 EPS for the quarter, missing analysts' consensus estimates of $2.18 by ($0.03). The company had revenue of $6.85 billion for the quarter, compared to analyst estimates of $6.81 billion. Waste Management had a net margin of 11.11% and a return on equity of 31.68%. Waste Management's revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the company posted $1.98 EPS.

Waste Management Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 11th were given a dividend of $0.9450 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $3.78 dividend on an annualized basis and a dividend yield of 1.7%. Waste Management's payout ratio is 53.54%.

Key Waste Management News

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

• Positive Sentiment: Revenue increased 6.3% year over year to $6.846 billion, exceeding the $6.81 billion analyst consensus. The company also reported third-quarter earnings of approximately $820 million and adjusted earnings of $2.15 per share, up from $1.98 a year earlier. Waste Management Q3 Earnings Snapshot
• Positive Sentiment: Waste Management’s ongoing share-repurchase program remains a potential support for per-share earnings and shareholder returns, although the latest update did not indicate a major change to the overall plan. Buyback Plan Tranche Update

Wall Street Analyst Weigh In

WM has been the subject of a number of recent analyst reports. Stifel Nicolaus increased their price target on Waste Management from $252.00 to $261.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Scotiabank boosted their price objective on Waste Management from $250.00 to $260.00 and gave the stock a "sector perform" rating in a report on Thursday, July 16th. Barclays upped their price objective on shares of Waste Management from $270.00 to $277.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Royal Bank Of Canada raised their target price on shares of Waste Management from $240.00 to $244.00 and gave the stock a "sector perform" rating in a report on Thursday, July 30th. Finally, Morgan Stanley cut their price target on shares of Waste Management from $230.00 to $220.00 and set an "equal weight" rating on the stock in a report on Tuesday, October 13th. Thirteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $256.06.

Insider Activity at Waste Management

In other news, CAO John Carroll sold 1,365 shares of Waste Management stock in a transaction on Friday, September 4th. The stock was sold at an average price of $219.90, for a total transaction of $300,163.50. Following the transaction, the chief accounting officer owned 3,509 shares in the company, valued at approximately $771,629.10. The trade was a 28.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Waste Management

Several hedge funds have recently bought and sold shares of WM. Main Street Group LTD acquired a new position in shares of Waste Management in the 1st quarter valued at about $31,000. Balance Wealth Partners LLC purchased a new stake in shares of Waste Management in the third quarter worth approximately $31,000. Cape Investment Advisory Inc. acquired a new stake in shares of Waste Management during the second quarter worth approximately $36,000. Markowski Investments acquired a new stake in shares of Waste Management during the second quarter worth approximately $38,000. Finally, Bogart Wealth LLC grew its position in Waste Management by 93.5% during the first quarter. Bogart Wealth LLC now owns 180 shares of the business services provider's stock valued at $41,000 after purchasing an additional 87 shares in the last quarter. 80.40% of the stock is owned by hedge funds and other institutional investors.

Waste Management Price Performance

The stock has a market capitalization of $89.93 billion, a PE ratio of 31.87, a P/E/G ratio of 3.06 and a beta of 0.42. The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.24. The stock's 50-day moving average is $217.58 and its 200 day moving average is $225.01.

Waste Management Company Profile

Waste Management, Inc, doing business as WM NYSE: WM, is an environmental services company that provides waste collection, transportation, disposal, recycling and resource-recovery services. The company serves residential, commercial, industrial and municipal customers through a network of collection operations, transfer stations, landfills, recycling facilities and other environmental infrastructure.

WM's services include curbside and commercial waste collection, construction and demolition debris management, recycling, organics processing and landfill disposal.

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