Noteworthy Insider Activity: Thomas Bene Invests $89K In Waste Management Stock

Thomas Bene, Director at Waste Management WM, disclosed an insider purchase on January 16, based on a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Bene purchased 433 shares of Waste Management. The total transaction amounted to $89,966.

Waste Management's shares are actively trading at $211.81, experiencing a up of 0.38% during Friday's morning session.

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.

Breaking Down Waste Management's Financial Performance

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. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 39.4%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Waste Management's EPS outshines the industry average, indicating a strong bottom-line trend 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.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 32.22 is lower than the industry average, indicating potential undervaluation for the 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): 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: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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The Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Cracking Transaction Codes

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.