TD Cowen Initiates Coverage of Waste Management (WM) with Outperform Recommendation

On March 30, 2023,
TD Cowen
initiated coverage of Waste Management with
a Outperform recommendation.

Analyst Price Forecast Suggests 9.32% Upside

As of March 30, 2023,
the average one-year price target for Waste Management is $171.68.
The forecasts range from a low of $152.51 to a high of $205.80.
The average price target represents an increase of 9.32% from its latest reported closing price of $157.04.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Waste Management
is $21,445MM, an increase of 8.87%.

The projected annual non-GAAP EPS
is $6.30.

Waste Management Declares $0.70 Dividend

On February 6, 2023 the company declared a regular
quarterly dividend of $0.70 per share ($2.80 annualized).
Shareholders of record as of March 10, 2023
received the payment on March 24, 2023.
Previously, the company paid $0.65 per share.

At the current share price of $157.04 / share,
the stock’s dividend yield is 1.78%.

Looking back five years and taking a sample every week, the average dividend yield has been
1.84%,
the lowest has been 1.38%,
and the highest has been 2.48%.
The standard deviation of yields is 0.25 (n=236).

The current dividend yield is
0.22 standard deviations

below
the historical average.

Additionally, the company’s dividend payout ratio is 0.51.
The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0)
means 100% of the company’s income is paid in a dividend.
A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a
healthy situation.
Companies with few growth prospects are expected to pay out most of their income in dividends, which typically
means a payout ratio between 0.5 and 1.0.
Companies with good growth prospects are expected to retain some earnings in order to invest
in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.28%,
demonstrating that it has increased its dividend over time.

What are Large Shareholders Doing?

Bill & Melinda Gates Foundation Trust
holds 35,234K shares

representing 8.63% ownership of the company.

No change in the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares
holds 12,478K shares

representing 3.06% ownership of the company.

In it’s prior filing, the firm reported owning 12,330K shares, representing
an increase
of 1.19%.

The firm

decreased

its portfolio allocation in WM by 8.48% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares
holds 8,635K shares

representing 2.12% ownership of the company.

In it’s prior filing, the firm reported owning 8,527K shares, representing
an increase
of 1.26%.

The firm

decreased

its portfolio allocation in WM by 8.64% over the last quarter.

Geode Capital Management
holds 7,024K shares

representing 1.72% ownership of the company.

In it’s prior filing, the firm reported owning 6,990K shares, representing
an increase
of 0.48%.

The firm

decreased

its portfolio allocation in WM by 9.03% over the last quarter.

Pictet Asset Management
holds 5,706K shares

representing 1.40% ownership of the company.

In it’s prior filing, the firm reported owning 6,004K shares, representing
a decrease
of 5.23%.

The firm

decreased

its portfolio allocation in WM by 9.46% over the last quarter.

What is the Fund Sentiment?

There are 2579 funds or institutions reporting positions in Waste Management.

This is an increase
of
62
owner(s) or 2.46% in the last quarter.

Average portfolio weight of all funds dedicated to WM is 0.37%,
a decrease
of 18.19%.

Total shares owned by institutions decreased
in the last three months by 0.52% to 360,657K shares.

The put/call ratio of WM is 0.62, indicating a

bullish
outlook.

Waste Management Background Information
(This description is provided by the company.)

Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America, providing services throughout the United States and Canada. Through its subsidiaries, the Company provides collection, transfer, disposal services, and recycling and resource recovery. It is also a leading developer, operator, and owner of landfill gas-to-energy facilities in the United States. The Company’s customers include residential, commercial, industrial, and municipal customers throughout North America.

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.