Board Member Of Waste Management Makes $89K Buy

On January 16, a substantial insider purchase was made by VICTORIA HOLT, Board Member at Waste Management WM, as per the latest SEC filing.

What Happened: HOLT's recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, involves purchasing 433 shares of Waste Management. The total transaction value is $89,966.

At Friday morning, Waste Management shares are up by 0.64%, trading at $212.37.

Delving into Waste Management's Background

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, industrial, and medical end markets and is also a leading recycler in North America.

Financial Insights: Waste Management

Revenue Growth: Waste Management's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 7.91%. This signifies 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.

Profitability Metrics: Unlocking Value

• Gross Margin: With a high gross margin of 39.4%, the company demonstrates effective cost control and strong profitability relative to its 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 1.89.

Debt Management: Waste Management's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.09, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 32.22 is lower than the industry average, implying a discounted valuation for Waste Management's stock.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.98, Waste Management's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 16.6 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Navigating the Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

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

The Insider's Guide to Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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.

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