On June 4, 2023, financial giant JPMorgan Chase & Co. announced that it had reduced its stake in Casella Waste Systems Inc. (NASDAQ:CWST) by 2.1% in the fourth quarter of the previous year. According to a Form 13F filing with the Securities & Exchange Commission, the fund owned 2,406,413 shares of the company’s stock after selling 51,661 shares during the period. The value of JPMorgan Chase & Co.’s stake in Casella Waste Systems was worth $190,853,000 as of its most recent SEC filing.
Casella Waste Systems is an industrial products company that specializes in waste management and environmental services. The company recently released its quarterly earnings data on April 28th. Casella Waste Systems reported earnings per share (EPS) of $0.10 for Q1 2023-24., beating analysts’ consensus estimate by $0.02.
Despite warnings about potential regulatory changes around environmental policies such as recycling programs, experts say that prospects for waste management companies like Casella are fairly positive due to their sustainability benefits.
Casella’s revenue during Q1 stood at $262.60 million compared to analysts’ prediction of $255.14 million — a growth of 12.2% compared to the same quarter last year when it posted an EPS of $0.11 per share.
During Q1 2023-24, the company had a return on equity (ROE) rate of 11.61%, and its net margin was reported at 4.71%. Analysts expect CWST to post an EPS of approximately $1.20 for this fiscal year.
While JP Morgan Chase has sold some shares in Casella Waste Systems to reduce its exposure within this particular market sector, investors should watch out for other institutional investors who may be keen on acquiring stakes in this growing industry. According to the U.S Environmental Protection Agency, more than 260 million tons of municipal solid waste are generated annually in America alone, and only about one-third of that waste is recycled or composted. Therefore, it certainly seems like an opportune time for investors interested in environmentally motivated profits to consider investing in sustainable companies such as Casella Waste Systems.
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Institutional Investors and Hedge Funds Show Confidence in Casella Waste Systems with Strategic Moves
As institutional investors and hedge funds continue to make strategic moves in the stock market, it is interesting to examine their recent actions in Casella Waste Systems (CWST). Public Employees Retirement System of Ohio, Lazard Asset Management LLC, Heritage Wealth Advisors, Trust Co. of Vermont, and Belpointe Asset Management LLC are just a few of the entities that have either increased or established positions in CWST over the past few quarters.
During the third quarter, Public Employees Retirement System of Ohio boosted its stake in CWST by 42.2%, now owning 475 shares worth $36,000. Lazard Asset Management LLC also made a bold move by acquiring a new stake in the company for $45,000 during the same period. More recently in the fourth quarter, Heritage Wealth Advisors and Trust Co. of Vermont followed suit with new positions worth $58,000 and $78,000 respectively.
Overall, institutional investors and hedge funds own an impressive 96.77% of CWST’s stock. This indicates confidence in the company’s potential for growth and profitability.
Casella Waste Systems currently trades at $93.82 per share with a market cap of $4.87 billion. Its price-to-earnings ratio stands at 92.89 with a price-to-earnings-growth ratio of 5.24 and beta of 0.93. The company has a solid current ratio of 1.29 and quick ratio of 1.20 along with a debt-to-equity ratio of 1.15.
With a range between its twelve-month low and high at $63.90 to $95.78 respectively, one can see why institutional investors have taken notice and taken actions to secure positions in Casella Waste Systems – an industrial products company that provides resource management expertise including waste collection, recycling services and organics processing.
It will be intriguing to observe how these investments ultimately play out, and whether these strategic moves by Wall Street’s elite will translate into value for the everyday shareholder. Nevertheless, CWST’s position as a market leader should prove to be a smart play in an ever-growing industry.
