Zacks Investment Research upgraded shares of Waste Connections (NYSE:WCN) from a hold rating to a buy rating in a research report released on Monday morning. They currently have $77.00 target price on the business services provider’s stock.
According to Zacks, “Waste Connections reported strong fourth-quarter results with year-over-year rise in revenues and adjusted earnings. With prime location of disposal sites within competitive markets, Waste Connections has optimal asset positioning to generate higher profitability. An experienced management team, decentralized operating strategy and financial strength remain additional tailwinds. Moreover, the merger with Progressive Waste Solutions has enhanced its scale of operations. In addition, a decentralized management enables it to identify and address customers’ needs on a real-time basis in a cost-effective manner. However, volatility in crude oil prices is expected to impair the profitability and creditworthiness of Waste Connections and adversely affect the level of investment and linear feet drilled in the basins where it operates. The company has underperformed the industry in the last three months.”
Other equities research analysts have also recently issued reports about the company. Credit Suisse Group set a $80.00 target price on Waste Connections and gave the stock a buy rating in a research note on Friday. KeyCorp reiterated a buy rating and set a $78.00 target price on shares of Waste Connections in a research note on Friday, October 27th. Oppenheimer lifted their target price on Waste Connections from $74.00 to $78.00 and gave the stock an outperform rating in a research note on Friday, October 27th. TD Securities lifted their target price on Waste Connections from $73.00 to $74.00 and gave the stock a hold rating in a research note on Friday, October 27th. Finally, Bank of America initiated coverage on Waste Connections in a research note on Friday, December 22nd. They set a buy rating and a $80.00 target price on the stock. Two research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of Buy and an average target price of $78.22.
Waste Connections (NYSE:WCN) last posted its quarterly earnings data on Wednesday, February 14th. The business services provider reported $0.52 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.49 by $0.03. The firm had revenue of $1.16 billion for the quarter, compared to the consensus estimate of $1.13 billion. Waste Connections had a net margin of 12.46% and a return on equity of 9.63%. The business’s revenue for the quarter was up 10.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.46 EPS. sell-side analysts anticipate that Waste Connections will post 2.46 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 14th. Investors of record on Wednesday, February 28th will be paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 0.79%. The ex-dividend date is Tuesday, February 27th. Waste Connections’s dividend payout ratio is currently 25.69%.
A number of institutional investors have recently made changes to their positions in the stock. Oppenheimer Asset Management Inc. raised its stake in Waste Connections by 16.4% in the 3rd quarter. Oppenheimer Asset Management Inc. now owns 5,128 shares of the business services provider’s stock valued at $359,000 after acquiring an additional 721 shares during the period. Signature Estate & Investment Advisors LLC raised its stake in Waste Connections by 7.8% in the 4th quarter. Signature Estate & Investment Advisors LLC now owns 10,750 shares of the business services provider’s stock valued at $763,000 after acquiring an additional 776 shares during the period. Dai Ichi Life Insurance Company Ltd raised its stake in Waste Connections by 21.5% in the 3rd quarter. Dai Ichi Life Insurance Company Ltd now owns 4,473 shares of the business services provider’s stock valued at $313,000 after acquiring an additional 791 shares during the period. Mn Services Vermogensbeheer B.V. raised its stake in Waste Connections by 1.9% in the 3rd quarter. Mn Services Vermogensbeheer B.V. now owns 43,520 shares of the business services provider’s stock valued at $3,045,000 after acquiring an additional 800 shares during the period. Finally, Fred Alger Management Inc. raised its stake in Waste Connections by 1.2% in the 4th quarter. Fred Alger Management Inc. now owns 76,639 shares of the business services provider’s stock valued at $5,437,000 after acquiring an additional 878 shares during the period. Institutional investors and hedge funds own 80.80% of the company’s stock.
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About Waste Connections
Waste Connections, Inc is a solid waste services company in North America. The Company provides waste collection, transfer, disposal and recycling services in markets in the United States and Canada. The Company operates through six segments: Southern segment, Western segment, Eastern segment, Canada segment, Central segment and E&P segment.
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