Wolverine Asset Management LLC recently entered the business services industry with a purchase of a stake in Waste Management, Inc. (NYSE:WM). This institutional investor acquired 3,500 shares for approximately $549,000. This move presents a significant addition to its current holdings and marks an important entry into the waste management and environmental solutions industry.
Waste Management’s financial report for Q1 2021 revealed that they missed analysts’ consensus estimates by ($0.09) with their earnings per share at $1.30 while the forecasted earning was $1.39. The company had revenues of $4.94 billion compared to its projected revenue of $4.97 billion. However, it also showed a net margin of 11.36% and return on equity of 32.91%. When compared to the same period last year, WM’s revenue increased by 5.5%. It is expected that Waste Management Inc will post six earnings per share for the current year.
Several research firms provide ratings for WM stock and Raymond James gave a positive review and rating of “outperform” but reduced its price target from $167 to $166 on Monday, February 6th along with Deutsche Bank Aktiengesellschaft though they dropped it much lower from $157 to $151 while providing a “hold” rating for the company in their report. TD Cowen also provided insight on March30th; they issued an “outperform” rating along with their price target set at around $200., while other firms such as StockNews.com stated that WM was rated as a “buy” based on their analysis from March 16th.
In conclusion, through Wolverine Asset Management LLC’s purchase above along with WM’s seemingly continuous growth in revenue despite having some misses on projections pre-pandemic combined with several ratings given by financial institutions suggesting interest to buy or hold rather than sell off any acquired shares prove that Waste Management Inc. is a worthwhile investment for those interested in long-term success in the business services industry.
Waste Management Inc. Attracts Institutional Investors but Analysts Remain Cautious
Waste Management, Inc., a business services provider with a market capitalization of $67.16 billion, has been attracting the attention of numerous hedge funds and institutional investors. Such investments come on the heels of Waste Management’s impressive 1-year high of $175.98 and a dividend increase to $0.70 per share for Q1 2017; an annualized dividend yield of 1.70%. According to recent reports, McClarren Financial Advisors Inc., Twin Lakes Capital Management LLC, TD Capital Management LLC, and HBC Financial Services PLLC all purchased new positions ranging from $25,000 to $47,000 in Waste Management during Q3 and Q4 of 2016. Tortoise Investment Management LLC likewise acquired shares worth $43,000 by raising its holdings in Waste Management by 232.1% during Q3.
Despite these transactions indicating strong backing for Waste Management among industry players, analysts remain cautious about the business’s future performance. For instance, Deutsche Bank Aktiengesellschaft has downgraded the company from “buy” to “hold” while decreasing its price target from $157.00 to $151.00 per share. Similarly, Raymond James has lowered its price target on shares from $167.00 to $166.00 following an “outperform” rating for the company.
In addition to institutional investments and ratings adjustments from industry experts, several insider trading activities within the company were also recently reported in SEC filings such as those relating to CFO Devina A. Rankin’s sales of 200 shares at an average price of $155 per share on February 13th and SVP Tara J.Hemmer’s sale of 7,515 shares at an average price of $155 per share on February 17th.
Overall, while Waste Management still boasts tremendous potential as a profitable investment option – thanks in part to the continued interest shown by various hedge funds and institutional investors – market analysts believe that recent insider trading activities, alongside ratings adjustments and activity involving other comparable businesses, have tempered some of their initial enthusiasm for the company’s future success.
