Republic Services Inc. (RSG) Downgraded by Zacks Investment Research
Republic Services Inc. (NYSE:RSG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Republic Services is focused on enhancing its operations by streamlining the cost structure, improving revenue quality and seeking growth through profitable investment opportunities. The company is realigning its field support functions by combining two organizational layers into one and expects these initiatives to contribute about $25 million of annual cost savings from 2018. Republic Services reaffirmed its earlier 2016 adjusted earnings per share and adjusted free cash flow guidance. The company has a positive earnings history in the trailing four quarters. Earnings estimates have also remained steady over the last 30 days. However, it remains exposed to commodity price headwinds and protracted weakness in special waste, industrial volumes and tight municipal budgets, which will likely have a negative impact on earnings. Margins are also expected to remain constrained in the future quarters as well.”
Several other research firms have also issued reports on RSG. Imperial Capital raised their price target on shares of Republic Services from $52.00 to $58.00 and gave the stock an “outperform” rating in a report on Tuesday, August 2nd. Macquarie began coverage on shares of Republic Services in a research report on Thursday, August 25th. They set a “neutral” rating and a $53.00 price objective for the company. Finally, Barclays PLC raised their price objective on shares of Republic Services from $52.00 to $56.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 9th. Seven analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Republic Services presently has an average rating of “Hold” and a consensus price target of $51.70.
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Republic Services (NYSE:RSG) traded up 0.345% during mid-day trading on Tuesday, reaching $50.885. 850,976 shares of the company’s stock traded hands. The stock has a market cap of $17.45 billion, a P/E ratio of 24.452 and a beta of 0.59. The company has a 50 day moving average price of $50.84 and a 200-day moving average price of $49.27. Republic Services has a 12 month low of $40.05 and a 12 month high of $52.92.
Republic Services (NYSE:RSG) last released its quarterly earnings results on Thursday, July 28th. The company reported $0.55 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.55. Republic Services had a net margin of 7.85% and a return on equity of 9.21%. The firm earned $2.35 billion during the quarter, compared to analyst estimates of $2.38 billion. During the same quarter last year, the business earned $0.54 EPS. The company’s revenue was up 1.7% compared to the same quarter last year. On average, analysts anticipate that Republic Services will post $2.16 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, October 14th. Investors of record on Monday, October 3rd will be given a $0.32 dividend. The ex-dividend date is Thursday, September 29th. This represents a $1.28 annualized dividend and a yield of 2.52%. This is an increase from Republic Services’s previous quarterly dividend of $0.30. Republic Services’s dividend payout ratio (DPR) is presently 57.97%.
In other Republic Services news, CAO Brian A. Goebel sold 3,780 shares of the firm’s stock in a transaction on Thursday, June 30th. The stock was sold at an average price of $50.83, for a total transaction of $192,137.40. Following the transaction, the chief accounting officer now directly owns 7,671 shares in the company, valued at approximately $389,916.93. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Brian A. Goebel sold 1,695 shares of the firm’s stock in a transaction on Tuesday, July 5th. The shares were sold at an average price of $52.10, for a total value of $88,309.50. Following the transaction, the chief accounting officer now owns 6,391 shares in the company, valued at $332,971.10. The disclosure for this sale can be found here. 0.50% of the stock is currently owned by corporate insiders.
Institutional investors have recently modified their holdings of the stock. Thomas White International Ltd. boosted its position in shares of Republic Services by 28.0% in the first quarter. Thomas White International Ltd. now owns 18,300 shares of the company’s stock valued at $872,000 after buying an additional 4,000 shares during the period. Mn Services Vermogensbeheer B.V. bought a new position in shares of Republic Services during the first quarter valued at $253,000. Aperio Group LLC boosted its position in shares of Republic Services by 7.5% in the first quarter. Aperio Group LLC now owns 222,246 shares of the company’s stock valued at $10,590,000 after buying an additional 15,548 shares during the period. Commonwealth Equity Services Inc boosted its position in shares of Republic Services by 4.2% in the first quarter. Commonwealth Equity Services Inc now owns 32,343 shares of the company’s stock valued at $1,541,000 after buying an additional 1,315 shares during the period. Finally, Glenmede Trust Co. NA boosted its position in shares of Republic Services by 1.2% in the first quarter. Glenmede Trust Co. NA now owns 290,654 shares of the company’s stock valued at $13,848,000 after buying an additional 3,405 shares during the period. Institutional investors and hedge funds own 61.46% of the company’s stock.
Republic Services Company Profile
Republic Services, Inc is a provider of non-hazardous solid waste collection, transfer, disposal, recycling and energy services in the United States. The Company operates through three segments: East, Central and West. The Company operates in over 40 states and Puerto Rico through approximately 340 collection operations, over 200 transfer stations, over 190 active landfills, approximately 70 recycling centers, approximately 10 treatment, recovery and disposal facilities, and over 10 salt water disposal wells.
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