Smart Money Move: Thomas Bene Grabs $89K Worth Of Waste Management Stock

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

What Happened: Bene'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 0.8%, currently priced at $222.66.

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

Evaluating Earnings Performance:

• Gross Margin: The company maintains a high gross margin of 39.14%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.76, Waste Management showcases strong earnings per share.

Debt Management: Waste Management's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.27, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Assessing Valuation Metrics:

• 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: A higher-than-average P/S ratio of 4.33 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Waste Management's EV/EBITDA ratio, surpassing industry averages at 18.04, positions it with an above-average valuation in the market.

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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Delving Into the Significance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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.

Exploring Key Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.