What Are Wall Street’s Thoughts On Waste Management Inc. Shares (WM)?

The stock of Waste Management Inc. (NYSE:WM) increased by increased by $2.54 on Friday to finish at $164.42, up 1.57 percent. The last five days have seen an average of 1,540,080 shares of common stock traded. 50 times new highs were reached in the current year, with a gain of $46.49. The average number of shares traded over the last 20 days was 1,485,640, while the average volume over the last 50 days totaled 1,400,308.

WM stock appreciated 7.11% since last month. On 10/01/21, the company’s shares reached a one-month low of $147.52. The stock touched a high of $162.33 on 10/22/21, after rallying from a low of $106.11 in 52 weeks. The price of WM stock has risen by 39.42% or $46.49 this year, reaching a new high 50 times. Still, the stock price is up 1.29% from the 52-week high.


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Insider Transactions

There have been 24 days since Waste Management Inc. (WM) last reported insider trading activity on Oct 01. On Oct 01, SVP & Chief Sustainability Off Hemmer Tara J. sold 12,186 shares at $149.07 each. This transaction resulted in the insider making $1,816,537. On Aug 31, Rankin Devina A sold 33,115 shares at a price of US$155.18. After the transaction, the insider now owns 36,685 shares. EVP, Corp Development & CLO Boettcher Charles C had earlier sold 13,613 shares on Aug 12 for $150.00 a share. The transaction was completed for $2,041,913.

Valuation Metrics

Waste Management Inc. (WM) has a trailing price-to-earnings (P/E) ratio of 43.74. This level actually compares favorably with the industry at large, as the PE for the Waste Management industry stands at about 51.34. Further, its PE also compares unfavorably with the Industrials sector’s trailing 12 months PE ratio, which comes in at 29.83 right now. The PE ratio of Waste Management Inc. has varied between 43.61 and 15.85 in the last five years. Beta for the stock is 0.84. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.13, the price-to-book (PB) ratio of 9.43, and the price-to-cash flow ratio of 42.82.

Waste Management Inc.’s dividend is $2.30 per share per year. With a dividend yield of 1.40%, WM has a payout ratio of 59.20%. On Sep. 17, the company paid $0.5750 per share in dividends, remained unchanged from $0.5750 last year. A $0.03 dividend increase was reported on Tuesday February 23 2021, making it the 18 consecutive year the dividend has increased. Over the last three years, dividends have increased by 28.24%.

For the three months ended June 29, Waste Management Inc.’s quick ratio was 0.80, while its current ratio was 0.90, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 1.75, and the total debt to equity ratio is 1.80. As far as profitability goes, gross margin for the trailing twelve months is 47.80% percent. Waste Management Inc.’s EBITDA margin for the year ended June 29 was 27.94%, whereas its operating margin stood at 15.10% for the same period. Based on annual data, it had gross profit of $5.88 billion and revenue of $15.22 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. WM’s return on assets (ROA) during the last 12 months has been 5.70%. There was a 9.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 21.80%. ROE has averaged 4.15 in the past year for the broader industry.

Earnings Surprise

According to Waste Management Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.48 billion, while revenues rose by 20.44% to $4.11 billion. It was predicted that Waste Management Inc.’s quarterly earnings would be $1.27, but it ended up being $1.19, beating the consensus by 6.70%. EBITDA was $1.32 billion for the quarter. At the end of Waste Management Inc.’s most recent quarter ended June 29, its liabilities totaled 21.68 billion, while its total debt was $13.24 billion. Equity owned by shareholders amounts to $421.1 million.

Technical Picture

Here’s a quick look at Waste Management Inc.’s (WM) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 83.01%, suggesting the stock is Overbought, with a 10.16% historical volatility rate.

The stochastic %K and %D were 98.44% and 95.55% respectively, while the average true range (ATR) was 2.21. Based on the 14-day stochastic reading of 98.99%, the RSI (14) reading is 76.38%. On the 9-day MACD Oscillator, the stock is at 3.56, and the 14-day reading is at 5.68.

Analyst Ratings

In its analyst report released on April 07, 2021, Goldman began covering Waste Management Inc. (NYSE: WM). The stock was rated as a Buy by the brokerage firm. Analysts have assigned Waste Management Inc. (WM) an Overweight rating. WM is a stock that is recommended for selling by 1 brokerage firm, while 7 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 2 rates it overweight and 7 others recommend it as a buy.

What is WM’s price target for the next 12 months?

The current consensus forecast for the stock is between $152.00 and $180.00, with a median target price of $161.00. In analyzing these forecasts, the average price target given by analysts for Waste Management Inc. (WM) is $162.43.

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