SEAN MENKE's Recent Buy: Acquires $89K In Waste Management Stock

Disclosed in the latest SEC filing, a significant insider purchase on January 16, involves SEAN MENKE, Director at Waste Management WM.

What Happened: MENKE'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.

Waste Management's shares are actively trading at $212.37, experiencing a up of 0.64% during Friday's morning session.

Get to Know Waste Management Better

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.

Waste Management: Financial Performance Dissected

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 its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Interpreting Earnings Metrics:

• Gross Margin: Achieving a high gross margin of 39.4%, 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 1.89.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.09, caution is advised due to increased financial risk.

Valuation Metrics:

• 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: The current P/S ratio of 3.98 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): Waste Management's EV/EBITDA ratio at 16.6 suggests potential undervaluation, falling below industry averages.

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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Uncovering the Importance of Insider Activity

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Cracking Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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.