Waste Management Inc. (NYSE: WM): Hunting Genuine Value In Market Debris

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Cascade Investment LLC recently announced the acquisition of new stake in Waste Management Inc. (NYSE:WM). The institutional investor has increased its shareholding in the Industrials company by 0.69% to 14.58 million shares with purchase of 100000.0 shares. This fresh investment now brings its stake to 3.46% valued currently at $1.54 billion. In addition, Northern Trust Investments, Inc.(. raised its holdings by 12701.0 to 4.98 million shares. And Norges Bank Investment Management has lifted its position by 4.91% or 0.22 million shares – to 4.59 million shares.

With over 1.4 million Waste Management Inc. (WM) shares trading Tuesday and a closing price of $107.52 on the day, the dollar volume was approximately $150.7 million. The shares have shown a negative weekly performance of 0.00% and its price on 07/28/20 gained nearly 0.42%. Currently, there are 424.20M common shares owned by the public and among those 421.37M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for WM have a consensus price objective of $111.36. The analysts have set the share’s price value over the next 12 months at a high of $125.00 and a low of $103.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Waste Management Inc. stock is 2.20 for the next 12 months. The average price target is 2.86% above its last price level and an upside to the estimated low will see the stock lose -4.39% over that period. But an upside of 13.98% will see the stock hit the forecast high price target while mean target price for the stock is $110.50.

Insiders at the company have transacted a total of 94 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 42 of these insider trades were purchases, accounting for 381,120 shares. Insider sales of the common stock occurred on 52 occasions, with total insider shares sold totaling 314,798 shares.

The top 3 mutual fund holders in Waste Management Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Parnassus Core Equity Fund. Vanguard Total Stock Market Index owns 12.08 million shares of the company’s stock, all valued at over $1.28 billion. The company sold -0.18 million shares recently to bring their total holdings to about 2.86% of the shares outstanding. Vanguard 500 Index Fund bought 84683.0 shares to see its total holdings expand to 8.05 million shares valued at over $852.99 million and representing 1.91% of the shares outstanding. Parnassus Core Equity Fund bought 0.16 million shares to bring its total holdings to over 4.71 million shares at a value of $498.52 million. Parnassus Core Equity Fund now owns shares totaling to 1.12% of the shares outstanding.

Shares of Waste Management Inc. (NYSE: WM) opened at $106.77, down -$0.3 from a prior closing price of $107.07. However, the script later closed the day at $107.52, up 0.42%. The company’s stock has a 5-day price change of 0.00% and 5.76% over the past three months. WM shares are trading -5.65% year to date (YTD), with the 12-month market performance down to -8.85% lower. It has a 12-month low price of $85.34 and touched a high of $126.79 over the same period. Currently, 1.4 million shares have been traded, compared to an average intraday trading volume of 2.16 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.60%, 2.43%, and -1.36% respectively.

Institutional ownership of Waste Management Inc. (NYSE: WM) shares accounts for 79.70% of the company’s 424.20M shares outstanding. Mutual fund holders own 35.61%, while other institutional holders and individual stakeholders account for 44.32% and 1.03% respectively.

It has a market capitalization of $45.69B and a beta (3y monthly) value of 0.73. The stock’s trailing 12-month PE ratio is 27.26, while the earnings-per-share (ttm) stands at $3.94. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.42% over the week and 1.61% over the month.

Analysts forecast that Waste Management Inc. (WM) will achieve an EPS of $0.8 for the current quarter, $0.96 for the next quarter and $4.31 for 2021. The lowest estimate earnings-per-share for the quarter is $0.72 while analysts give the company a high EPS estimate of $0.98. Comparatively, EPS for the current quarter was $1.11 a year ago. Earnings per share for the fiscal year are expected to decrease by -11.70%, and 15.71% over the next financial year. EPS should shrink at an annualized rate of -0.56% over the next five years, compared to 7.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Waste Management Inc. (WM) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 8 of the 17 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the WM, a number of firms have released research notes about the stock. CIBC stated their Neutral rating for the stock in a research note on July 15, 2020, with the firm’s price target at. Robert W. Baird coverage for the Waste Management Inc. (WM) stock in a research note released on May 29, 2020 offered a Outperform rating with a price target of $115. RBC Capital Mkts was of a view on April 09, 2020 that the stock is Sector Perform, while Goldman gave the stock Neutral rating on March 13, 2020, issuing a price target of. UBS on their part issued Buy rating on March 04, 2020.

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