Waste Management (WM) Downgraded by Zacks Investment Research to “Hold”

Waste Management (NYSE:WM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Saturday.

According to Zacks, “Waste Management continues to execute its core operating objectives and instill price and cost discipline to achieve better margins. The company's successful cost-reduction initiatives have helped it achieve EBITDA growth. Its solid waste business is in great shape. Waste Management continues to enjoy a dominant market capitalization and a steady annual dividend policy. The company is increasingly focusing on maximizing return on disposal network.  The stock has outperformed the industry in the past year. On the flip side, high debt remains a major concern. Also, the company faces seasonal fluctuations in revenues.”

Several other analysts have also recently commented on WM. ValuEngine upgraded Waste Management from a “hold” rating to a “buy” rating in a research report on Tuesday, September 18th. BMO Capital Markets boosted their price target on Waste Management to $98.00 and gave the stock an “overweight” rating in a research report on Monday, October 8th. They noted that the move was a valuation call. Two equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $94.38.

Shares of WM stock traded up $0.51 during trading hours on Friday, hitting $88.55. 2,724,035 shares of the company’s stock were exchanged, compared to its average volume of 2,093,874. The company has a debt-to-equity ratio of 1.48, a current ratio of 0.75 and a quick ratio of 0.72. The company has a market cap of $38.74 billion, a price-to-earnings ratio of 27.50, a PEG ratio of 1.86 and a beta of 0.70. Waste Management has a fifty-two week low of $76.54 and a fifty-two week high of $92.85.

Waste Management (NYSE:WM) last announced its earnings results on Wednesday, July 25th. The business services provider reported $1.01 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.99 by $0.02. The business had revenue of $3.74 billion during the quarter, compared to the consensus estimate of $3.76 billion. Waste Management had a return on equity of 27.38% and a net margin of 14.94%. The business’s quarterly revenue was up 1.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.81 EPS. Analysts anticipate that Waste Management will post 4.08 earnings per share for the current fiscal year.

In other Waste Management news, Director Patrick W. Gross sold 406 shares of the company’s stock in a transaction on Wednesday, July 18th. The stock was sold at an average price of $83.22, for a total value of $33,787.32. Following the completion of the sale, the director now directly owns 24,149 shares in the company, valued at approximately $2,009,679.78. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 0.30% of the stock is owned by corporate insiders.

Large investors have recently modified their holdings of the business. Canton Hathaway LLC purchased a new position in shares of Waste Management during the 3rd quarter worth $596,000. Berkshire Asset Management LLC PA grew its holdings in shares of Waste Management by 5.4% during the 3rd quarter. Berkshire Asset Management LLC PA now owns 357,716 shares of the business services provider’s stock worth $32,323,000 after purchasing an additional 18,440 shares during the period. Bank of Montreal Can grew its holdings in shares of Waste Management by 3.4% during the 3rd quarter. Bank of Montreal Can now owns 923,438 shares of the business services provider’s stock worth $83,442,000 after purchasing an additional 30,366 shares during the period. Wendell David Associates Inc. purchased a new position in shares of Waste Management during the 3rd quarter worth $221,000. Finally, Vigilant Capital Management LLC grew its holdings in shares of Waste Management by 200.0% during the 3rd quarter. Vigilant Capital Management LLC now owns 1,500 shares of the business services provider’s stock worth $136,000 after purchasing an additional 1,000 shares during the period. Institutional investors own 74.62% of the company’s stock.

Waste Management Company Profile

Waste Management, Inc, through its subsidiaries, provides waste management environmental services to residential, commercial, industrial, and municipal customers in North America. It provides collection services, including picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility (MRF), or disposal site; and owns, develops, and operates landfill gas-to-energy facilities in the United States, as well as owns and operates transfer stations.

Featured Story: How is the S&P 500 index different from the DJIA?

Get a free copy of the Zacks research report on Waste Management (WM)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Waste Management (NYSE:WM)

Receive News & Ratings for Waste Management Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Waste Management and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply