Insider Move: KATHLEEN MAZZARELLA Invests $140K In Waste Management Stock

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

What Happened: MAZZARELLA's recent purchase of 674 shares of Waste Management, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, reflects confidence in the company's potential. The total transaction value is $140,040.

The latest update on Friday morning shows Waste Management shares up by 0.64%, trading at $212.37.

Discovering Waste Management: A Closer Look

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's Economic Impact: An Analysis

Revenue Growth: Waste Management's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 7.91%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• 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): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.89, Waste Management showcases strong earnings per share.

Debt Management: With a high debt-to-equity ratio of 2.09, Waste Management faces challenges in effectively managing its debt levels, indicating potential financial strain.

Exploring Valuation Metrics Landscape:

• 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 relatively high Price to Sales ratio of 3.98 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 16.6, Waste Management presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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The Impact of Insider Transactions on Investments

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Breaking Down the Significance of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.