Waste Management (NYSE:WM) Stock Crosses Below 200-Day Moving Average on Disappointing Earnings

Waste Management, Inc. (NYSE:WM) shares passed below its 200-day moving average during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $225.01 and traded as low as $224.64. Waste Management shares last traded at $224.99, with a volume of 3,669,807 shares trading hands.

The business services provider reported $2.15 earnings per share for the quarter, missing analysts’ consensus estimates of $2.18 by ($0.03). Waste Management had a return on equity of 31.68% and a net margin of 11.11%. The company had revenue of $6.85 billion during the quarter, compared to analyst estimates of $6.81 billion. During the same period last year, the company posted $1.98 earnings per share. The company’s revenue was up 6.3% compared to the same quarter last year.

Waste Management Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 11th were given a dividend of $0.9450 per share. The ex-dividend date of this dividend was Friday, September 11th. This represents a $3.78 dividend on an annualized basis and a yield of 1.7%. Waste Management’s dividend payout ratio (DPR) is presently 53.54%.

Trending Headlines about Waste Management

Here are the key news stories impacting Waste Management this week:

• Positive Sentiment: Revenue increased 6.3% year over year to $6.846 billion, exceeding the $6.81 billion analyst consensus. The company also reported third-quarter earnings of approximately $820 million and adjusted earnings of $2.15 per share, up from $1.98 a year earlier. Waste Management Q3 Earnings Snapshot
• Positive Sentiment: Waste Management’s ongoing share-repurchase program remains a potential support for per-share earnings and shareholder returns, although the latest update did not indicate a major change to the overall plan. Buyback Plan Tranche Update

Analysts Set New Price Targets

WM has been the topic of several research reports. Canadian Imperial Bank of Commerce dropped their target price on Waste Management from $250.00 to $225.00 and set a “neutral” rating on the stock in a research report on Thursday, October 8th. Royal Bank Of Canada boosted their price target on Waste Management from $240.00 to $244.00 and gave the company a “sector perform” rating in a research note on Thursday, July 30th. Barclays increased their price objective on Waste Management from $270.00 to $277.00 and gave the stock an “overweight” rating in a report on Thursday, July 30th. JPMorgan Chase & Co. cut their price objective on shares of Waste Management from $270.00 to $235.00 and set an “overweight” rating on the stock in a research report on Thursday, October 8th. Finally, Oppenheimer reduced their target price on shares of Waste Management from $264.00 to $263.00 and set an “outperform” rating for the company in a research note on Wednesday, July 8th. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Waste Management currently has a consensus rating of “Moderate Buy” and a consensus price target of $256.06.

Insiders Place Their Bets

In related news, CAO John Carroll sold 1,365 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $219.90, for a total value of $300,163.50. Following the completion of the sale, the chief accounting officer directly owned 3,509 shares in the company, valued at approximately $771,629.10. The trade was a 28.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On Waste Management

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Main Street Group LTD bought a new position in shares of Waste Management in the first quarter valued at approximately $31,000. Balance Wealth Partners LLC acquired a new stake in shares of Waste Management in the third quarter worth $31,000. Cape Investment Advisory Inc. bought a new stake in shares of Waste Management during the 2nd quarter worth $36,000. Markowski Investments bought a new stake in shares of Waste Management during the 2nd quarter worth $38,000. Finally, Bogart Wealth LLC grew its stake in Waste Management by 93.5% in the 1st quarter. Bogart Wealth LLC now owns 180 shares of the business services provider’s stock valued at $41,000 after buying an additional 87 shares during the last quarter. Institutional investors and hedge funds own 80.40% of the company’s stock.

Waste Management Stock Down 4.6%

The firm has a market capitalization of $89.93 billion, a price-to-earnings ratio of 31.87, a price-to-earnings-growth ratio of 3.06 and a beta of 0.42. The company has a debt-to-equity ratio of 2.24, a quick ratio of 0.87 and a current ratio of 0.91. The business’s 50 day moving average is $217.58 and its 200-day moving average is $225.01.

Waste Management Company Profile

Waste Management, Inc, doing business as WM (NYSE:WM), is an environmental services company that provides waste collection, transportation, disposal, recycling and resource-recovery services. The company serves residential, commercial, industrial and municipal customers through a network of collection operations, transfer stations, landfills, recycling facilities and other environmental infrastructure.

WM’s services include curbside and commercial waste collection, construction and demolition debris management, recycling, organics processing and landfill disposal.