Waste Connections (NYSE:WCN) Reaches New 12-Month Low - What's Next?

Key Points

• Waste Connections hit a new 52-week low, trading as low as $150.25 and ending near $151.08, even as the stock remains widely covered by analysts with an average Buy rating and a consensus price target of about $203.35.
• The company’s latest quarterly results beat EPS expectations at $1.23 per share, but revenue of $2.33 billion came in below estimates. Revenue still grew 6.4% year over year, and analysts expect full-year EPS of 5.5.
• Waste Connections also announced a $0.35 quarterly dividend payable May 21, while insider selling was reported by two executives and institutional ownership remained high at 86.09%.

Waste Connections, Inc. (NYSE:WCN - Get Free Report) shares reached a new 52-week low on Tuesday . The company traded as low as $150.25 and last traded at $151.0750, with a volume of 1445627 shares traded. The stock had previously closed at $151.82.

Analyst Ratings Changes

A number of research firms have weighed in on WCN. Deutsche Bank Aktiengesellschaft set a $212.00 price target on shares of Waste Connections in a research report on Friday, February 13th. TD Cowen dropped their price target on shares of Waste Connections from $210.00 to $200.00 and set a "buy" rating for the company in a research report on Friday, February 13th. Weiss Ratings upgraded shares of Waste Connections from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, April 29th. Citigroup reiterated a "neutral" rating and issued a $183.00 price target (down from $196.00) on shares of Waste Connections in a research report on Friday, January 16th. Finally, Wolfe Research began coverage on shares of Waste Connections in a research report on Friday, March 13th. They issued an "outperform" rating and a $199.00 price target for the company. Four equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $203.35.

Waste Connections Trading Down 0.5%

The company has a market cap of $38.56 billion, a PE ratio of 36.85, a P/E/G ratio of 2.70 and a beta of 0.55. The stock's 50 day moving average is $163.01 and its 200-day moving average is $167.87. The company has a quick ratio of 0.69, a current ratio of 0.69 and a debt-to-equity ratio of 1.13.

Waste Connections (NYSE:WCN - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The business services provider reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.19 by $0.04. The company had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.50 billion. Waste Connections had a net margin of 10.97% and a return on equity of 16.49%. Waste Connections's revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.13 earnings per share. As a group, sell-side analysts anticipate that Waste Connections, Inc. will post 5.5 EPS for the current year.

Waste Connections Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 21st. Stockholders of record on Wednesday, May 6th will be issued a $0.35 dividend. The ex-dividend date is Wednesday, May 6th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 0.9%. Waste Connections's payout ratio is 34.15%.

Insider Buying and Selling

In other news, VP James Little sold 2,605 shares of Waste Connections stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $163.98, for a total value of $427,167.90. Following the completion of the transaction, the vice president owned 34,395 shares in the company, valued at approximately $5,640,092.10. The trade was a 7.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Eric Hansen sold 6,000 shares of the stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $164.82, for a total transaction of $988,920.00. Following the completion of the sale, the senior vice president directly owned 13,350 shares in the company, valued at approximately $2,200,347. This represents a 31.01% decrease in their position. The SEC filing for this sale provides additional information. 0.27% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Waste Connections

Several hedge funds and other institutional investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. raised its stake in shares of Waste Connections by 0.6% in the first quarter. PNC Financial Services Group Inc. now owns 85,668 shares of the business services provider's stock valued at $13,916,000 after acquiring an additional 475 shares during the period. Puzo Michael J purchased a new stake in shares of Waste Connections in the first quarter valued at $1,385,000. Dimensional Fund Advisors LP raised its stake in shares of Waste Connections by 19.7% in the first quarter. Dimensional Fund Advisors LP now owns 745,441 shares of the business services provider's stock valued at $121,086,000 after acquiring an additional 122,829 shares during the period. Broderick Brian C purchased a new stake in shares of Waste Connections in the first quarter valued at $972,000. Finally, SEB Asset Management AB purchased a new stake in shares of Waste Connections in the first quarter valued at $8,701,000. Hedge funds and other institutional investors own 86.09% of the company's stock.

About Waste Connections

Waste Connections NYSE: WCN is a North American integrated waste services company that provides a range of solid waste and environmental services to municipal, commercial, industrial and residential customers. The company offers collection, transportation, transfer, disposal and recycling services, and operates an extensive network of transfer stations and disposal facilities. Waste Connections positions itself as a provider of infrastructure-driven waste solutions across many regions of the United States and Canada.

The company's operating activities include routine curbside and commercial collection, roll-off and container services, operation of landfills and transfer stations, and recycling and resource recovery programs.

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