Waste Management, Inc. (NYSE:WM) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst consensus: Waste Management carries a consensus recommendation of "Moderate Buy" from 25 analysts (16 buy, 8 hold, 1 strong buy) with an average 1‑year price target of $254.59.
• Insiders sold 98,042 shares worth about $23.04 million over the last quarter (including sales by the COO and an SVP), leaving insiders with just 0.18% ownership.
• The company raised its quarterly dividend to $0.945 (annualized $3.78, yield 1.6%), and its latest quarter showed a slight EPS miss ($1.93 vs. $1.95) with revenue up 7.1% year‑over‑year.

Waste Management, Inc. (NYSE:WM - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the twenty-five analysts that are presently covering the company, Marketbeat Ratings reports. Eight equities research analysts have rated the stock with a hold recommendation, sixteen have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $254.5909.

A number of research firms recently weighed in on WM. Royal Bank Of Canada lifted their target price on shares of Waste Management from $223.00 to $235.00 and gave the stock a "sector perform" rating in a report on Friday, January 30th. Scotiabank reaffirmed a "sector perform" rating and issued a $250.00 target price (down from $254.00) on shares of Waste Management in a research report on Wednesday, January 21st. UBS Group upgraded Waste Management from a "neutral" rating to a "buy" rating and increased their target price for the stock from $225.00 to $260.00 in a research note on Friday, January 9th. DZ Bank initiated coverage on Waste Management in a report on Tuesday, November 25th. They set a "buy" rating and a $250.00 price target for the company. Finally, Wolfe Research initiated coverage on Waste Management in a report on Friday, March 13th. They issued a "peer perform" rating on the stock.

Insider Buying and Selling at Waste Management

In related news, COO John J. Morris sold 7,979 shares of the firm's stock in a transaction on Friday, March 6th. The stock was sold at an average price of $245.07, for a total transaction of $1,955,413.53. Following the sale, the chief operating officer owned 98,656 shares of the company's stock, valued at $24,177,625.92. This trade represents a 7.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Rafael Carrasco sold 7,352 shares of the business's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $234.50, for a total value of $1,724,044.00. Following the sale, the senior vice president owned 15,540 shares in the company, valued at $3,644,130. This represents a 32.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 98,042 shares of company stock valued at $23,039,777. 0.18% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Waste Management

A number of hedge funds have recently made changes to their positions in WM. Norges Bank bought a new stake in shares of Waste Management in the 4th quarter valued at $1,022,916,000. Vontobel Holding Ltd. grew its holdings in Waste Management by 444.3% in the third quarter. Vontobel Holding Ltd. now owns 2,206,026 shares of the business services provider's stock worth $487,157,000 after purchasing an additional 1,800,728 shares during the period. Capital International Investors grew its holdings in Waste Management by 218.3% in the third quarter. Capital International Investors now owns 1,369,805 shares of the business services provider's stock worth $302,494,000 after purchasing an additional 939,455 shares during the period. Holocene Advisors LP increased its stake in Waste Management by 163.7% in the third quarter. Holocene Advisors LP now owns 1,400,701 shares of the business services provider's stock valued at $309,317,000 after purchasing an additional 869,453 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its holdings in shares of Waste Management by 982.3% during the third quarter. Assenagon Asset Management S.A. now owns 886,164 shares of the business services provider's stock valued at $195,692,000 after purchasing an additional 804,285 shares during the period. 80.40% of the stock is currently owned by institutional investors.

Waste Management Stock Performance

WM stock opened at $233.89 on Friday. Waste Management has a twelve month low of $194.11 and a twelve month high of $248.13. The business's fifty day moving average is $231.18 and its 200-day moving average is $220.66. The company has a quick ratio of 0.85, a current ratio of 0.89 and a debt-to-equity ratio of 2.22. The company has a market cap of $94.34 billion, a P/E ratio of 34.91, a price-to-earnings-growth ratio of 2.47 and a beta of 0.57.

Waste Management (NYSE:WM - Get Free Report) last released its quarterly earnings data on Wednesday, January 28th. The business services provider reported $1.93 earnings per share for the quarter, missing the consensus estimate of $1.95 by ($0.02). The business had revenue of $6.31 billion for the quarter, compared to the consensus estimate of $6.39 billion. Waste Management had a net margin of 10.74% and a return on equity of 32.45%. The company's revenue for the quarter was up 7.1% on a year-over-year basis. During the same quarter last year, the firm earned $1.70 EPS. Equities research analysts forecast that Waste Management will post 7.7 EPS for the current year.

Waste Management Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 27th. Investors of record on Friday, March 13th will be given a $0.945 dividend. The ex-dividend date is Friday, March 13th. This is an increase from Waste Management's previous quarterly dividend of $0.83. This represents a $3.78 dividend on an annualized basis and a dividend yield of 1.6%. Waste Management's dividend payout ratio (DPR) is 56.42%.

About Waste Management

Waste Management, Inc NYSE: WM is a leading provider of integrated waste management and environmental services in North America. The company offers end-to-end solutions that span collection, transfer, disposal and recycling, along with landfill operations and related infrastructure. Headquartered in Houston, Texas, Waste Management serves a broad customer base that includes residential, commercial, industrial and municipal clients.

Core services include curbside and commercial waste collection, roll-off and temporary container services, materials recovery and recycling, and engineered landfill disposal.

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