Andres Gluski's Recent Buy: Acquires $89K In Waste Management Stock

Andres Gluski, Board Member at Waste Management WM, reported an insider buy on January 16, according to a new SEC filing.

What Happened: Gluski's recent purchase of 433 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 $89,966.

Tracking the Friday's morning session, Waste Management shares are trading at $211.81, showing a up of 0.38%.

Unveiling the Story Behind 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's Economic Impact: An Analysis

Revenue Growth: Waste Management displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 7.91%. This indicates a notable 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.

Navigating Financial Profits:

• 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): Waste Management's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.89.

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.

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: 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): At 16.6, Waste Management's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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.

Transaction Codes To Focus On

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.