JPMorgan Chase & Co. has increased its price target for Waste Management (NYSE:WM) from $255.00 to $265.00, reflecting a positive outlook for the waste management company. The assessment was part of a research report issued on October 30, 2023, where JPMorgan reaffirmed an “overweight” rating for the stock. This adjustment comes amidst a backdrop of mixed evaluations from various financial analysts regarding the company’s future performance.
Several other analysts have recently provided their insights on Waste Management. On October 31, 2023, UBS Group reduced its price target from $240.00 to $225.00, maintaining a “neutral” rating. In contrast, Oppenheimer reaffirmed an “outperform” rating with a target price of $262.00 in a report dated October 29, 2023. Additionally, Royal Bank of Canada lowered its target from $234.00 to $223.00 while offering a “sector perform” rating. CIBC also adjusted its target price down to $231.00 on the same date, holding a “neutral” stance.
Analyst coverage indicates a generally favorable sentiment towards Waste Management. Currently, three analysts rate the stock as a “Strong Buy,” while eighteen suggest a “Buy” rating, and nine recommend holding the stock. According to MarketBeat.com, Waste Management holds an average rating of “Moderate Buy” with an average target price of $249.14.
Recent Performance and Earnings Report
Waste Management’s stock opened at $215.69 on Monday, October 30, 2023. The company’s 50-day moving average stands at $212.38, while the 200-day average is $223.12. Over the past year, shares have fluctuated between a low of $194.11 and a high of $242.58. The company boasts a market capitalization of $86.89 billion and a price-to-earnings (P/E) ratio of 33.97.
On October 27, 2023, Waste Management released its quarterly earnings, reporting $1.98 in earnings per share (EPS), which fell short of analysts’ expectations of $2.01. Revenue for the quarter reached $6.44 billion, lower than the anticipated $6.51 billion. Despite the miss, the company still achieved a year-over-year revenue growth of 14.9%.
Waste Management has established its fiscal year 2025 guidance projecting an EPS of approximately $7.70.
Dividend Announcement and Insider Activity
In a related financial update, Waste Management has declared a quarterly dividend of $0.825 per share, which will be distributed on December 19, 2023. Shareholders on record as of December 5, 2023 will be eligible for this payment, translating to an annualized dividend of $3.30 and a yield of 1.5%. The company’s dividend payout ratio stands at 51.97%.
In corporate governance news, Senior Vice President Rafael Carrasco sold 1,380 shares on November 20, 2023, at an average price of $217.06, amounting to approximately $299,542.80. Post-transaction, Carrasco holds 15,540 shares valued at about $3,373,112.40, marking an 8.16% decrease in his holdings. Company insiders currently own 0.18% of Waste Management’s stock.
Institutional investors have actively adjusted their positions in Waste Management. Notably, ARQ Wealth Advisors LLC acquired a new stake valued at approximately $700,000. Kimelman & Baird LLC increased its holdings by 0.6%, bringing its total to 211,121 shares worth approximately $46.62 million. Other firms, such as CIBC Bancorp USA Inc. and Achmea Investment Management B.V., have also increased their stakes, reflecting a growing institutional interest in the company.
As Waste Management continues to navigate a competitive landscape, analysts and investors alike are closely monitoring its performance and strategic decisions in the coming months.
