Republic Services, Inc. (NYSE:RSG) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts give Republic Services a “Moderate Buy” consensus, with 11 buy ratings and 11 hold ratings. The average 12-month price target is approximately $243.89, above the stock’s reported $210.75 price.
• Republic Services exceeded quarterly expectations, reporting $1.70 in EPS versus the $1.64 consensus and $4.11 billion in revenue. Analysts expect full-year EPS of $7.29.
• The company raised its quarterly dividend from $0.62 to $0.67 per share, bringing the annualized dividend to $2.68 and the yield to about 1.3%; major shareholder Cascade Investment also purchased 60,700 shares.

Republic Services, Inc. (NYSE:RSG - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-two ratings firms that are currently covering the stock, Marketbeat Ratings reports. Eleven research analysts have rated the stock with a hold recommendation and eleven have issued a buy recommendation on the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $243.8947.

A number of brokerages have weighed in on RSG. Citigroup raised their target price on shares of Republic Services from $247.00 to $259.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Republic Services in a report on Friday, July 24th. JPMorgan Chase & Co. boosted their price objective on shares of Republic Services from $233.00 to $245.00 and gave the stock a "neutral" rating in a research note on Friday, April 10th. Argus downgraded Republic Services from a "buy" rating to a "hold" rating in a report on Monday, May 11th. Finally, Robert W. Baird cut their target price on Republic Services from $242.00 to $240.00 and set a "neutral" rating on the stock in a report on Thursday, April 16th.

Insider Buying and Selling at Republic Services

In other Republic Services news, major shareholder Cascade Investment, L.L.C. purchased 60,700 shares of the company's stock in a transaction on Monday, May 18th. The shares were purchased at an average cost of $213.31 per share, with a total value of $12,947,917.00. Following the completion of the purchase, the insider owned 110,803,982 shares in the company, valued at $23,635,597,400.42. This represents a 0.05% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Sandra M. Volpe sold 1,800 shares of the firm's stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $211.28, for a total transaction of $380,304.00. Following the completion of the sale, the director owned 58 shares of the company's stock, valued at $12,254.24. The trade was a 96.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have bought 987,150 shares of company stock valued at $202,366,682. 0.12% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Republic Services

A number of large investors have recently modified their holdings of the company. Wealth Watch Advisors INC bought a new position in Republic Services in the 3rd quarter valued at about $26,000. Laurel Wealth Advisors LLC bought a new stake in Republic Services in the 4th quarter worth about $25,000. Prosperity Bancshares Inc bought a new position in shares of Republic Services during the 4th quarter worth approximately $30,000. Sound Income Strategies LLC purchased a new position in shares of Republic Services in the 4th quarter worth approximately $32,000. Finally, Hilton Head Capital Partners LLC bought a new position in Republic Services in the 4th quarter valued at $32,000. 57.73% of the stock is currently owned by institutional investors.

Republic Services Stock Performance

NYSE:RSG opened at $210.75 on Monday. The company has a market cap of $64.84 billion, a price-to-earnings ratio of 30.24, a PEG ratio of 3.52 and a beta of 0.40. Republic Services has a fifty-two week low of $196.41 and a fifty-two week high of $238.62. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.67 and a current ratio of 0.67. The stock has a fifty day moving average price of $212.57 and a 200-day moving average price of $215.01.

Republic Services (NYSE:RSG - Get Free Report) last issued its earnings results on Friday, May 8th. The business services provider reported $1.70 EPS for the quarter, beating the consensus estimate of $1.64 by $0.06. Republic Services had a net margin of 13.00% and a return on equity of 18.57%. The company had revenue of $4.11 billion during the quarter, compared to analysts' expectations of $4.10 billion. During the same period in the previous year, the company earned $1.58 EPS. The business's revenue for the quarter was up 2.6% compared to the same quarter last year. As a group, equities analysts anticipate that Republic Services will post 7.29 EPS for the current fiscal year.

Republic Services Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Friday, October 2nd will be issued a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a yield of 1.3%. The ex-dividend date is Friday, October 2nd. This is a positive change from Republic Services's previous quarterly dividend of $0.62. Republic Services's dividend payout ratio (DPR) is 35.87%.

Republic Services Company Profile

Republic Services, Inc is a leading provider of non-hazardous solid waste and recycling services in the United States. The company offers a broad range of waste management solutions to residential, commercial, industrial and municipal customers, positioning itself as a full-service partner for everyday waste collection as well as specialized disposal needs.

Republic's core operations include curbside and commercial collection, transfer and hauling, materials recovery and recycling facilities, and landfill disposal.

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