Maryrose Sylvester Boosts Confidence With $89K Purchase Of Waste Management Stock

Maryrose Sylvester, Board Member at Waste Management WM, disclosed an insider purchase on January 16, based on a new SEC filing.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Sylvester increased their investment in Waste Management by purchasing 433 shares through open-market transactions, signaling confidence in the company's potential. 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.

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

Waste Management: Delving into Financials

Positive Revenue Trend: Examining Waste Management's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.91% as of 30 September, 2024, showcasing a substantial increase in 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.

Analyzing Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 39.4%, reflecting superior 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 1.89, Waste Management showcases strong earnings per share.

Debt Management: Waste Management's debt-to-equity ratio stands notably higher than the industry average, reaching 2.09. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Assessing 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: A higher-than-average P/S ratio of 3.98 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 16.6, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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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.

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

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

Exploring Key Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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.