Insider Confidence On Display: WILLIAM PLUMMER Acquires $89K In Waste Management Stock

A notable insider purchase on July 16, was reported by WILLIAM PLUMMER, Board Member at Waste Management WM, based on the most recent SEC filing.

What Happened: PLUMMER's recent purchase of 418 shares of Waste Management, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, reflects confidence in the company's potential. The total transaction value is $89,897.

As of Wednesday morning, Waste Management shares are up by 0.27%, currently priced at $221.49.

All You Need to Know About Waste Management

WM ranks as the largest integrated provider of traditional solid waste services in the United States, operating 263 active landfills and about 332 transfer stations. The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.

Waste Management: A Financial Overview

Revenue Growth: Over the 3 months period, Waste Management showcased positive performance, achieving a revenue growth rate of 5.46% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Insights into Profitability:

• Gross Margin: Achieving a high gross margin of 39.14%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Waste Management's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.76.

Debt Management: Waste Management's debt-to-equity ratio stands notably higher than the industry average, reaching 2.27. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 36.15, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 4.33 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 18.04 positions the company as being more valued compared to industry benchmarks.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Illuminating the Importance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Waste Management's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.