89K Reasons To Be Bullish On Waste Management Stock

In a recent SEC filing, it was revealed that Maryrose Sylvester, Director at Waste Management WM, made a noteworthy insider purchase on July 16,.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled that Sylvester made a notable purchase of 418 shares of Waste Management, valuing at $89,897.

In the Wednesday's morning session, Waste Management's shares are currently trading at $221.49, experiencing a up of 0.27%.

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.

Unraveling the Financial Story of Waste Management

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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Insights into Profitability:

• Gross Margin: With a high gross margin of 39.14%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Waste Management's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.76.

Debt Management: With a high debt-to-equity ratio of 2.27, Waste Management faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation Breakdown:

• 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: The current P/S ratio of 4.33 is above industry norms, reflecting an elevated valuation for Waste Management's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 18.04, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Illuminating the Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes 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.