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

Key Points

• Waste Management received a consensus analyst rating of “Moderate Buy” from 24 brokerages, with 15 buy ratings, one strong buy, and an average 1-year price target of about $255.67.
• The company recently reported quarterly EPS of $1.81, topping estimates, while revenue came in slightly below expectations at $6.23 billion. Revenue still rose 3.5% year over year.
• Waste Management also increased its quarterly dividend to $0.945 per share, up from $0.83, which implies an annualized dividend of $3.78 and a yield of about 1.8%.

Shares of Waste Management, Inc. (NYSE:WM - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the twenty-four brokerages that are covering the firm, MarketBeat reports. Eight equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $255.6667.

Several research firms have issued reports on WM. Scotiabank reaffirmed a "sector perform" rating and issued a $250.00 price target (down from $254.00) on shares of Waste Management in a report on Wednesday, January 21st. TD Cowen upped their price target on Waste Management from $270.00 to $275.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Wells Fargo & Company dropped their price target on Waste Management from $273.00 to $268.00 and set an "overweight" rating on the stock in a report on Thursday, April 30th. Oppenheimer boosted their target price on shares of Waste Management from $263.00 to $264.00 and gave the company an "outperform" rating in a research note on Friday, January 30th. Finally, Wolfe Research assumed coverage on shares of Waste Management in a research note on Friday, March 13th. They set a "peer perform" rating on the stock.

Insider Activity at Waste Management

In other Waste Management news, SVP Tara J. Hemmer sold 4,818 shares of the business's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $241.83, for a total transaction of $1,165,136.94. Following the sale, the senior vice president directly owned 78,918 shares of the company's stock, valued at $19,084,739.94. The trade was a 5.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Donald J. Smith sold 12,194 shares of the business's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $233.48, for a total transaction of $2,847,055.12. Following the sale, the vice president directly owned 6,024 shares in the company, valued at approximately $1,406,483.52. This trade represents a 66.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 91,959 shares of company stock worth $21,698,005. Insiders own 0.18% of the company's stock.

Hedge Funds Weigh In On Waste Management

Several institutional investors and hedge funds have recently modified their holdings of WM. Lockheed Martin Investment Management Co. acquired a new position in shares of Waste Management during the third quarter valued at about $3,092,000. Guerra Advisors Inc raised its position in shares of Waste Management by 59.5% during the third quarter. Guerra Advisors Inc now owns 9,037 shares of the business services provider's stock valued at $1,996,000 after buying an additional 3,371 shares during the last quarter. Capital Advisors Inc. OK raised its position in shares of Waste Management by 2.0% during the fourth quarter. Capital Advisors Inc. OK now owns 196,585 shares of the business services provider's stock valued at $43,192,000 after buying an additional 3,880 shares during the last quarter. Compass Wealth Management LLC raised its position in shares of Waste Management by 537.0% during the third quarter. Compass Wealth Management LLC now owns 95,721 shares of the business services provider's stock valued at $21,138,000 after buying an additional 80,695 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. raised its position in Waste Management by 19.1% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 69,287 shares of the business services provider's stock worth $15,301,000 after purchasing an additional 11,135 shares in the last quarter. 80.40% of the stock is currently owned by hedge funds and other institutional investors.

Waste Management Price Performance

NYSE WM opened at $215.18 on Friday. The stock has a market capitalization of $86.41 billion, a P/E ratio of 31.14, a P/E/G ratio of 2.32 and a beta of 0.49. Waste Management has a 1 year low of $194.11 and a 1 year high of $248.13. The business's fifty day moving average is $231.84 and its two-hundred day moving average is $222.91. The company has a debt-to-equity ratio of 2.22, a quick ratio of 0.89 and a current ratio of 0.93.

Waste Management (NYSE:WM - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The business services provider reported $1.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.75 by $0.06. The company had revenue of $6.23 billion for the quarter, compared to analysts' expectations of $6.28 billion. Waste Management had a return on equity of 31.90% and a net margin of 10.99%.The firm's revenue was up 3.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.67 earnings per share. On average, research analysts forecast that Waste Management will post 8.15 earnings per share for the current fiscal year.

Waste Management Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were paid a dividend of $0.945 per share. This is an increase from Waste Management's previous quarterly dividend of $0.83. The ex-dividend date of this dividend was Friday, March 13th. This represents a $3.78 annualized dividend and a yield of 1.8%. Waste Management's dividend payout ratio (DPR) is presently 54.70%.

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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