Waste Management Inc. (NYSE: WM) stock fell -1.20% on Friday to $166.87 against a previous-day closing price of $168.89. With 1.32 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.57 million shares. During the session, the Waste Management company that operates in wider Industrials sector, reached to the highest price of $169.06 whereas the lowest price it dropped to was $166.57. The 52-week range on WM shows that it touched its highest point at $175.98 and its lowest point at $138.58 during that stretch. It currently has a 1-year price target of $174.00. With its current market cap of 69.66 billion, WM has annualized dividend of $2.60 while the current yield stands at 1.56%. Beta for the stock currently stands at 0.76.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WM was down-trending over the past week, with a drop of -2.43%, but this was down by -3.78% over a month. Three-month performance surged to 13.37% while six-month performance rose 8.67%. The stock gained 8.77% in the past year, while it has lost -0.02% so far this year. A look at the trailing 12-month EPS for WM yields 5.12 with Next year EPS estimates of 6.40. For the next quarter, that number is 1.51. This implies an EPS growth rate of 22.00% for this year and 11.83% for next year. EPS is expected to grow by 14.64% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.20%.
Float and Shares Shorts:
At present, 414.40 million WM shares are outstanding with a float of 412.38 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.24 million, which was 0.78% higher than short shares on Jun 14, 2022. In addition to Mr. James C. Fish Jr. as the firm’s Pres, CEO & Director, Ms. Devina A. Rankin serves as its Exec. VP & CFO.
Through their ownership of 83.39% of WM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.93% of WM, in contrast to 38.09% held by mutual funds. Shares owned by individuals account for 1.08%. As the largest shareholder in WM with 8.31% of the stake, The Vanguard Group, Inc. holds 34,338,681 shares worth 34,338,681. A second-largest stockholder of WM, BlackRock Fund Advisors, holds 20,716,984 shares, controlling over 5.01% of the firm’s shares. Bill & Melinda Gates Foundation T is the third largest shareholder in WM, holding 18,633,672 shares or 4.51% stake. With a 2.97% stake in WM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 12,289,828 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.06% of WM stock, is the second-largest Mutual Fund holder. It holds 8,525,044 shares valued at 1.44 billion. American Mutual Fund holds 1.16% of the stake in WM, owning 4,804,376 shares worth 812.08 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WM since 20 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WM analysts setting a high price target of $198.00 and a low target of $163.00, the average target price over the next 12 months is $172.94. Based on these targets, WM could surge 18.66% to reach the target high and fall by -2.32% to reach the target low. Reaching the average price target will result in a growth of 3.64% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WM will report FY 2022 earnings on 02/16/2023. Analysts have provided yearly estimates in a range of $5.91 being high and $5.55 being low. For WM, this leads to a yearly average estimate of $5.72. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Waste Management Inc. surprised analysts by $0.04 when it reported $1.44 EPS against a consensus estimate of $1.40. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $1.61 and the low estimate is $1.43. The average estimate for the next quarter is thus $1.52.
Summary of Insider Activity:
Insiders traded WM stock several times over the past three months with 16 Buys and 7 Sells. In these transactions, 193,909 shares were bought while 170,720 shares were sold. The number of buy transactions has increased to 49 while that of sell transactions has risen to 43 over the past year. The total number of shares bought during that period was 592,933 while 456,992 shares were sold.