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

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

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled that MENKE made a notable purchase of 418 shares of Waste Management, valuing at $89,897.

At Wednesday morning, Waste Management shares are up by 0.27%, trading at $221.49.

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.

Key Indicators: Waste Management's Financial Health

Revenue Growth: Waste Management's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 5.46%. 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.

Evaluating Earnings Performance:

• Gross Margin: With a high gross margin of 39.14%, the company demonstrates effective cost control and strong profitability relative 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: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.27, caution is advised due to increased financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 36.15 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 4.33 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): A high EV/EBITDA ratio of 18.04 positions the company as being more valued compared to industry benchmarks.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Transactions Are Key in Investment Decisions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Unlocking the Meaning of Transaction Codes

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.