Zacks Investment Research upgraded shares of Republic Services Inc. (NYSE:RSG) from a hold rating to a buy rating in a research report sent to investors on Wednesday. The firm currently has $57.00 price target on the stock.
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.”
Other research analysts have also issued reports about the company. Macquarie assumed coverage on Republic Services in a report on Thursday, August 25th. They set a neutral rating and a $53.00 price target on the stock. Imperial Capital raised their price target on Republic Services from $52.00 to $58.00 and gave the company an outperform rating in a report on Tuesday, August 2nd. Finally, Barclays PLC raised their price target on Republic Services from $52.00 to $56.00 and gave the company an overweight rating in a report on Tuesday, August 9th. Six investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The stock presently has an average rating of Buy and a consensus price target of $51.90.
Republic Services (NYSE:RSG) opened at 50.40 on Wednesday. The firm has a 50-day moving average of $50.71 and a 200-day moving average of $49.52. Republic Services has a 12-month low of $41.64 and a 12-month high of $52.92. The stock has a market capitalization of $17.28 billion, a price-to-earnings ratio of 24.22 and a beta of 0.54.
Republic Services (NYSE:RSG) last posted its earnings results on Thursday, July 28th. The company reported $0.55 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.55. The company had revenue of $2.35 billion for the quarter, compared to analysts’ expectations of $2.38 billion. Republic Services had a return on equity of 9.21% and a net margin of 7.85%. The firm’s quarterly revenue was up 1.7% compared to the same quarter last year. During the same period last year, the business posted $0.54 earnings per share. Equities research analysts forecast that Republic Services will post $2.16 earnings per share for the current fiscal year.
The business 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. This is a positive change from Republic Services’s previous quarterly dividend of $0.30. The ex-dividend date is Thursday, September 29th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.54%. Republic Services’s dividend payout ratio (DPR) is 61.84%.
Institutional investors have recently added to or reduced their stakes in the stock. Cohen & Steers Inc. raised its position in Republic Services by 77,955.4% in the second quarter. Cohen & Steers Inc. now owns 2,107,495 shares of the company’s stock worth $134,711,000 after buying an additional 2,104,795 shares during the period. BlackRock Fund Advisors raised its stake in shares of Republic Services by 21.9% in the second quarter. BlackRock Fund Advisors now owns 7,074,214 shares of the company’s stock worth $362,978,000 after buying an additional 1,270,660 shares during the last quarter. Bank of Montreal Can acquired a new stake in shares of Republic Services during the second quarter worth approximately $46,588,000. JPMorgan Chase & Co. raised its stake in shares of Republic Services by 19.1% in the second quarter. JPMorgan Chase & Co. now owns 4,423,451 shares of the company’s stock worth $226,969,000 after buying an additional 708,511 shares during the last quarter. Finally, AQR Capital Management LLC raised its stake in shares of Republic Services by 24.2% in the second quarter. AQR Capital Management LLC now owns 3,247,368 shares of the company’s stock worth $166,622,000 after buying an additional 631,716 shares during the last quarter. Institutional investors and hedge funds own 61.01% 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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Republic Services Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Republic Services Inc. and related companies with MarketBeat.com's FREE daily email newsletter.