Smart Money Move: KATHLEEN MAZZARELLA Grabs $140K Worth Of Waste Management Stock

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

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that MAZZARELLA purchased 651 shares of Waste Management. The total transaction amounted to $140,007.

Waste Management shares are trading up 0.27% at $221.49 at the time of this writing on Wednesday morning.

Unveiling the Story Behind 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.

Financial Insights: Waste Management

Positive Revenue Trend: Examining Waste Management's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.46% as of 31 March, 2024, showcasing a substantial increase in 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.

Exploring Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 39.14%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Waste Management's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.76.

Debt Management: Waste Management's debt-to-equity ratio surpasses industry norms, standing at 2.27. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 36.15 is lower than the industry average, indicating potential undervaluation for the stock.

• 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): Boasting an EV/EBITDA ratio of 18.04, Waste Management demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Understanding the Significance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.