Waste Management (WM) Lowered to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Waste Management (NYSE:WM) from a buy rating to a hold rating in a report released on Friday.

According to Zacks, “Waste Management continues to execute its core operating initiatives 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 dominant market capitalization and has 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, seasonality causes considerable fluctuations in Waste Management’s revenues. A debt-laden balance sheet remains a major concern.”

Several other research firms also recently commented on WM. UBS Group set a $90.00 price objective on Waste Management and gave the company a hold rating in a research note on Friday, October 26th. BMO Capital Markets reissued a buy rating and issued a $93.00 price objective on shares of Waste Management in a research note on Thursday, July 26th. Raymond James reissued a buy rating on shares of Waste Management in a research note on Monday, October 29th. Oppenheimer reaffirmed a buy rating and issued a $95.00 target price on shares of Waste Management in a research note on Thursday, October 25th. Finally, ValuEngine raised Waste Management from a hold rating to a buy rating in a research note on Saturday, July 28th. Two investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Waste Management has a consensus rating of Buy and an average target price of $96.83.

NYSE WM opened at $90.84 on Friday. Waste Management has a one year low of $78.39 and a one year high of $93.29. The company has a debt-to-equity ratio of 1.53, a current ratio of 0.87 and a quick ratio of 0.84. The firm has a market capitalization of $38.84 billion, a P/E ratio of 23.24, a PEG ratio of 1.79 and a beta of 0.64.

Waste Management (NYSE:WM) last posted its quarterly earnings data on Thursday, October 25th. The business services provider reported $1.15 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.11 by $0.04. Waste Management had a return on equity of 27.93% and a net margin of 15.60%. The firm had revenue of $3.82 billion during the quarter, compared to the consensus estimate of $3.82 billion. On average, sell-side analysts forecast that Waste Management will post 4.14 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, December 14th. Shareholders of record on Friday, November 30th will be paid a $0.465 dividend. This represents a $1.86 dividend on an annualized basis and a dividend yield of 2.05%. The ex-dividend date of this dividend is Thursday, November 29th. Waste Management’s dividend payout ratio (DPR) is presently 57.76%.

In other Waste Management news, VP Jeff M. Harris sold 24,500 shares of the firm’s stock in a transaction on Thursday, November 8th. The stock was sold at an average price of $90.00, for a total value of $2,205,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.30% of the stock is owned by company insiders.

Several large investors have recently modified their holdings of the stock. Windward Capital Management Co. CA increased its position in shares of Waste Management by 2.3% during the 3rd quarter. Windward Capital Management Co. CA now owns 25,359 shares of the business services provider’s stock worth $2,291,000 after purchasing an additional 563 shares during the last quarter. Exeter Financial LLC increased its position in shares of Waste Management by 3.5% during the 2nd quarter. Exeter Financial LLC now owns 16,994 shares of the business services provider’s stock worth $1,382,000 after purchasing an additional 569 shares during the last quarter. Hall Laurie J Trustee increased its position in shares of Waste Management by 3.0% during the 3rd quarter. Hall Laurie J Trustee now owns 20,055 shares of the business services provider’s stock worth $1,812,000 after purchasing an additional 575 shares during the last quarter. Charter Trust Co. increased its position in shares of Waste Management by 7.7% during the 3rd quarter. Charter Trust Co. now owns 8,021 shares of the business services provider’s stock worth $725,000 after purchasing an additional 575 shares during the last quarter. Finally, State of Alaska Department of Revenue increased its position in shares of Waste Management by 0.7% during the 3rd quarter. State of Alaska Department of Revenue now owns 78,651 shares of the business services provider’s stock worth $7,105,000 after purchasing an additional 583 shares during the last quarter. 75.00% of the stock is owned by hedge funds and other institutional investors.

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.

Further Reading: How to calculate the intrinsic value of a stock

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