Waste Management (NYSE:WM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Sunday. The brokerage presently has a $99.00 target price on the business services provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 12.42% from the stock’s previous close.
According to Zacks, “Waste Management is focusing on the core business activities to instill price and cost discipline in order to achieve better margins. The acquisition of Deffenbaugh Disposal will enable Waste Management to extend its geographic footprint and make a foray in the attractive market of Kansas City, where it has limited presence. A steady stream of such accretive acquisitions is likely to drive earnings for the company in the future. The company's successful cost-reduction initiatives have helped it in accomplishing remarkable gross margin expansion and EBITDA growth over the quarters. With strong yield and cost performance in the third quarter, the company has lifted its guidance for 2017. Waste Management has also outperformed the industry in the last three months. However, stringent government regulations are likely to erode profitability as compliance with such regulations increases operating costs.”
Other analysts also recently issued reports about the company. Stifel Nicolaus restated a “buy” rating and issued a $100.00 price target on shares of Waste Management in a research note on Thursday, January 4th. Credit Suisse Group set a $90.00 target price on Waste Management and gave the company a “buy” rating in a research report on Monday, October 30th. KeyCorp reiterated a “buy” rating and set a $88.00 target price on shares of Waste Management in a research report on Friday, October 27th. BMO Capital Markets reiterated a “buy” rating and set a $85.00 target price on shares of Waste Management in a research report on Friday, October 13th. Finally, Bank of America cut their target price on Waste Management from $85.00 to $83.00 and set a “buy” rating for the company in a research report on Thursday, October 5th. Two analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. The stock has an average rating of “Buy” and an average target price of $86.78.
Waste Management (NYSE:WM) last released its quarterly earnings results on Thursday, October 26th. The business services provider reported $0.90 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.88 by $0.02. The business had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.71 billion. Waste Management had a return on equity of 25.61% and a net margin of 9.66%. The firm’s quarterly revenue was up 4.7% on a year-over-year basis. During the same period in the previous year, the company posted $0.84 EPS. equities analysts predict that Waste Management will post 3.2 earnings per share for the current fiscal year.
Waste Management announced that its board has authorized a share repurchase plan on Thursday, December 14th that authorizes the company to buyback $1.25 billion in shares. This buyback authorization authorizes the business services provider to repurchase shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its stock is undervalued.
In other news, Director Patrick W. Gross sold 387 shares of the company’s stock in a transaction on Wednesday, January 17th. The stock was sold at an average price of $88.30, for a total transaction of $34,172.10. Following the completion of the sale, the director now directly owns 30,673 shares in the company, valued at approximately $2,708,425.90. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Barry H. Caldwell sold 1,650 shares of the company’s stock in a transaction on Tuesday, November 28th. The shares were sold at an average price of $81.10, for a total value of $133,815.00. The disclosure for this sale can be found here. Corporate insiders own 0.19% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. California Public Employees Retirement System raised its holdings in shares of Waste Management by 6.2% during the 3rd quarter. California Public Employees Retirement System now owns 1,466,158 shares of the business services provider’s stock worth $114,756,000 after buying an additional 85,636 shares in the last quarter. Yellowstone Partners LLC acquired a new position in shares of Waste Management during the 3rd quarter worth $449,000. Cambria Investment Management L.P. acquired a new position in shares of Waste Management during the 2nd quarter worth $5,535,000. Personal Capital Advisors Corp raised its holdings in shares of Waste Management by 24.0% during the 3rd quarter. Personal Capital Advisors Corp now owns 163,337 shares of the business services provider’s stock worth $12,784,000 after buying an additional 31,585 shares in the last quarter. Finally, Moody Lynn & Lieberson LLC raised its holdings in shares of Waste Management by 20.1% during the 3rd quarter. Moody Lynn & Lieberson LLC now owns 171,716 shares of the business services provider’s stock worth $13,440,000 after buying an additional 28,760 shares in the last quarter. 74.93% of the stock is owned by institutional investors.
WARNING: This piece was originally reported by American Banking News and is the sole property of of American Banking News. If you are accessing this piece on another publication, it was copied illegally and reposted in violation of international copyright & trademark legislation. The legal version of this piece can be viewed at https://www.americanbankingnews.com/2018/01/21/waste-management-wm-upgraded-to-buy-by-zacks-investment-research.html.
Waste Management Company Profile
Waste Management, Inc (WM) is a holding company. The Company, through its subsidiaries, is a provider of waste management environmental services. The Company’s segments include Solid Waste and Other. The Company’s Solid Waste segment includes its solid waste business. The Other segment includes its Strategic Business Solutions (WMSBS) organization; its landfill gas-to-energy operations and third-party subcontract and administration services managed by its Energy and Environmental Services and WM Renewable Energy organizations; its recycling brokerage services, and its service offerings and solutions, such as portable self-storage and long distance moving services, fluorescent lamp recycling and interests it holds in oil and gas producing properties.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
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.