Republic Services Inc. (RSG) Rating Lowered to Hold at Zacks Investment Research
Republic Services Inc. (NYSE:RSG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued 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 brokerages also recently commented on RSG. Imperial Capital lifted their target price 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 initiated coverage on shares of Republic Services in a report on Thursday, August 25th. They issued a “neutral” rating and a $53.00 target price on the stock. Finally, Barclays PLC lifted their target price on shares of Republic Services from $52.00 to $56.00 and gave the stock an “overweight” rating in a report on Tuesday, August 9th. Seven analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $51.90.
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Shares of Republic Services (NYSE:RSG) traded up 0.18% during trading on Tuesday, reaching $50.24. 696,301 shares of the company’s stock were exchanged. Republic Services has a 52-week low of $41.82 and a 52-week high of $52.92. The company has a 50 day moving average price of $50.35 and a 200-day moving average price of $49.63. The company has a market capitalization of $17.22 billion, a PE ratio of 24.14 and a beta of 0.54.
Republic Services (NYSE:RSG) last released its quarterly earnings data on Thursday, July 28th. The company reported $0.55 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.55. Republic Services had a net margin of 7.85% and a return on equity of 9.21%. The business earned $2.35 billion during the quarter, compared to analyst estimates of $2.38 billion. During the same quarter in the previous year, the business earned $0.54 EPS. Republic Services’s quarterly revenue was up 1.7% compared to the same quarter last year. On average, equities analysts forecast that Republic Services will post $2.16 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Friday, October 14th. Investors of record on Monday, October 3rd were paid a $0.32 dividend. The ex-dividend date of this dividend was Thursday, September 29th. This represents a $1.28 dividend on an annualized basis and a yield of 2.55%. This is a boost from Republic Services’s previous quarterly dividend of $0.30. Republic Services’s payout ratio is presently 61.84%.
In related news, insider Donald W. Slager sold 26,000 shares of the company’s stock in a transaction dated Monday, October 3rd. The shares were sold at an average price of $50.37, for a total value of $1,309,620.00. Following the sale, the insider now owns 234,397 shares of the company’s stock, valued at $11,806,576.89. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.50% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of the stock. AMP Capital Investors Ltd boosted its stake in Republic Services by 171.3% in the first quarter. AMP Capital Investors Ltd now owns 217,500 shares of the company’s stock worth $10,516,000 after buying an additional 137,345 shares during the last quarter. Reynolds Capital Management LLC acquired a new stake in Republic Services during the first quarter worth $210,000. Prudential PLC boosted its stake in Republic Services by 16.1% in the first quarter. Prudential PLC now owns 26,719 shares of the company’s stock worth $1,273,000 after buying an additional 3,700 shares during the last quarter. Geode Capital Management LLC boosted its stake in Republic Services by 1.3% in the first quarter. Geode Capital Management LLC now owns 2,082,515 shares of the company’s stock worth $99,046,000 after buying an additional 26,552 shares during the last quarter. Finally, Cleararc Capital Inc. boosted its stake in Republic Services by 7.1% in the first quarter. Cleararc Capital Inc. now owns 34,173 shares of the company’s stock worth $1,628,000 after buying an additional 2,273 shares during the last quarter. 61.02% of the stock is currently owned by institutional investors and hedge funds.
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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