JPMorgan Chase & Co. has increased its price target for Waste Management (NYSE: WM) stock from $255.00 to $265.00, reflecting a positive outlook for the business services provider. This adjustment, reported on October 30, 2023, assigns an overweight rating to the company’s shares, suggesting that analysts believe it will perform better than the market average.
The new target comes amidst a flurry of activity from other financial institutions regarding Waste Management’s stock. On October 31, 2023, UBS Group adjusted its price target downwards from $240.00 to $225.00, while maintaining a neutral rating. Similarly, Oppenheimer reaffirmed an outperform rating with a target price of $262.00. Royal Bank of Canada also lowered its target from $234.00 to $223.00, assigning a sector perform rating.
Analysts have varied opinions on Waste Management’s stock performance. Currently, three analysts rate it as a Strong Buy, with eighteen issuing a Buy rating and nine classifying it as Hold, according to MarketBeat.com. The average rating stands at “Moderate Buy,” with an average target price of $249.14.
Current Stock Performance and Financial Overview
On October 30, 2023, Waste Management shares opened at $215.69, reflecting a decline of 1.0% from the previous day. The company’s 50-day moving average is $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.
Financially, Waste Management reported its quarterly earnings on October 27, 2023, showing earnings per share (EPS) of $1.98. This result fell short of analysts’ expectations of $2.01 by $0.03. The company generated revenue of $6.44 billion, which was below the forecast of $6.51 billion. Despite missing the earnings estimate, Waste Management experienced a year-over-year revenue increase of 14.9%.
The company’s financial ratios also reveal important insights. Waste Management has a market capitalization of $86.89 billion, a price-to-earnings (P/E) ratio of 33.97, and a debt-to-equity ratio of 2.36. Its dividend payout ratio currently stands at 51.97%, reflecting a commitment to returning value to shareholders.
Dividend Announcement and Insider Activity
In a recent announcement, Waste Management declared a quarterly dividend of $0.825, which will be distributed on December 19, 2023. Stockholders on record as of December 5, 2023 will receive this dividend, representing an annualized dividend yield of 1.5%.
In related developments, the company’s Senior Vice President, Rafael Carrasco, sold 1,380 shares on November 20, 2023, at an average price of $217.06, totaling approximately $299,542.80. Following this transaction, Carrasco holds 15,540 shares valued at around $3,373,112.40, marking an 8.16% decrease in his position.
Institutional investors have also been active, with hedge funds increasing their stakes in Waste Management. For instance, ARQ Wealth Advisors LLC acquired a new position valued at approximately $700,000 during the third quarter of 2023. Other firms, including Kimelman & Baird LLC and Achmea Investment Management B.V., have also adjusted their holdings, demonstrating strong interest in the company’s stock.
Overall, Waste Management continues to navigate a complex landscape of market expectations and financial performance. With varying analyst ratings and recent insider activity, investors are closely monitoring developments as the company moves towards the end of the fiscal year.
