Key Points
- Cascade Investment, Republic Services’ major shareholder, bought 78,150 shares on May 11 at an average price of $197.18, worth about $15.4 million. The purchase raised its stake by just 0.07%.
- Cascade also made additional large buys in the prior days, including 366,000 shares on May 13 and 55,000 shares on May 12. The cluster of insider buying may signal confidence in Republic Services’ outlook.
- Republic Services recently reported better-than-expected quarterly earnings, with EPS of $1.70 versus estimates of $1.64, and revenue of $4.11 billion slightly above forecasts. The company also declared a quarterly dividend of $0.625 per share, payable July 15.
Republic Services, Inc. (NYSE:RSG - Get Free Report) major shareholder Cascade Investment, L.L.C. bought 55,000 shares of Republic Services stock in a transaction on Tuesday, May 12th. The shares were purchased at an average cost of $201.78 per share, for a total transaction of $11,097,900.00. Following the completion of the purchase, the insider directly owned 109,949,982 shares of the company's stock, valued at $22,185,707,367.96. This trade represents a 0.05% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Major shareholders that own 10% or more of a company's shares are required to disclose their transactions with the SEC.
Cascade Investment, L.L.C. also recently made the following trade(s):
- On Monday, May 11th, Cascade Investment, L.L.C. bought 78,150 shares of Republic Services stock. The shares were purchased at an average cost of $197.18 per share, for a total transaction of $15,409,617.00.
- On Wednesday, May 13th, Cascade Investment, L.L.C. bought 366,000 shares of Republic Services stock. The shares were purchased at an average cost of $202.24 per share, for a total transaction of $74,019,840.00.
Republic Services Price Performance
Shares of RSG stock opened at $203.66 on Thursday. The company has a debt-to-equity ratio of 1.11, a current ratio of 0.67 and a quick ratio of 0.64. The firm's 50-day moving average is $215.61 and its two-hundred day moving average is $215.04. Republic Services, Inc. has a 12 month low of $196.41 and a 12 month high of $258.75. The company has a market capitalization of $62.66 billion, a PE ratio of 29.22, a price-to-earnings-growth ratio of 3.33 and a beta of 0.43.
Republic Services (NYSE:RSG - Get Free Report) last released its quarterly earnings results on Friday, May 8th. The business services provider reported $1.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.64 by $0.06. The business had revenue of $4.11 billion for the quarter, compared to the consensus estimate of $4.10 billion. Republic Services had a net margin of 13.00% and a return on equity of 18.57%. The business's revenue was up 2.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.58 EPS. Analysts predict that Republic Services, Inc. will post 7.28 earnings per share for the current year.
Republic Services Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Thursday, July 2nd will be paid a $0.625 dividend. This represents a $2.50 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, July 2nd. Republic Services's payout ratio is 36.15%.
Key Stories Impacting Republic Services
Here are the key news stories impacting Republic Services this week:
- Positive Sentiment: Cascade Investment, L.L.C., Republic Services’ major shareholder, bought three separate blocks of stock over the last few days, including a 366,000-share purchase at $202.24 and additional buys of 55,000 and 78,150 shares. Large insider buying is often viewed as a sign of confidence in the company’s outlook. SEC filing for Cascade Investment purchases
- Positive Sentiment: A Zacks piece highlighted Republic Services as a long-term growth name, pointing to the company’s appeal as a steady operator with growth characteristics. Zacks article on RSG long-term growth
- Neutral Sentiment: A Yahoo Finance-linked deep dive said first-quarter pricing gains, digital investments, and acquisitions helped offset flat volumes, suggesting Republic’s core business remains resilient but volume growth is still muted. RSG Q1 Deep Dive article
- Negative Sentiment: Argus Research downgraded Republic Services to Hold, and related coverage noted the stock hit a new 1-year low after the downgrade. That analyst move likely weighed on shares and reflects more cautious near-term sentiment. Argus downgrades Republic Services
Institutional Inflows and Outflows
A number of institutional investors have recently made changes to their positions in RSG. Brighton Jones LLC grew its holdings in shares of Republic Services by 75.8% in the fourth quarter. Brighton Jones LLC now owns 19,822 shares of the business services provider's stock valued at $3,988,000 after purchasing an additional 8,547 shares in the last quarter. Federated Hermes Inc. grew its holdings in shares of Republic Services by 23.2% in the second quarter. Federated Hermes Inc. now owns 17,553 shares of the business services provider's stock valued at $4,329,000 after purchasing an additional 3,303 shares in the last quarter. NewEdge Advisors LLC grew its holdings in shares of Republic Services by 3.6% in the second quarter. NewEdge Advisors LLC now owns 29,690 shares of the business services provider's stock valued at $7,322,000 after purchasing an additional 1,044 shares in the last quarter. Treasurer of the State of North Carolina grew its holdings in Republic Services by 0.7% during the 2nd quarter. Treasurer of the State of North Carolina now owns 94,626 shares of the business services provider's stock worth $23,336,000 after acquiring an additional 688 shares in the last quarter. Finally, Ieq Capital LLC grew its holdings in Republic Services by 68.4% during the 2nd quarter. Ieq Capital LLC now owns 11,643 shares of the business services provider's stock worth $2,871,000 after acquiring an additional 4,729 shares in the last quarter. Institutional investors and hedge funds own 57.73% of the company's stock.
Wall Street Analysts Forecast Growth
RSG has been the topic of a number of research analyst reports. Weiss Ratings downgraded shares of Republic Services from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, April 29th. Canadian Imperial Bank of Commerce reissued an "outperform" rating and issued a $249.00 price target on shares of Republic Services in a research note on Friday, May 8th. Robert W. Baird reduced their price target on shares of Republic Services from $242.00 to $240.00 and set a "neutral" rating on the stock in a research note on Thursday, April 16th. Scotiabank reduced their price target on shares of Republic Services from $246.00 to $242.00 and set a "sector perform" rating on the stock in a research note on Wednesday, January 21st. Finally, Argus downgraded shares of Republic Services from a "buy" rating to a "hold" rating in a research note on Monday. Eleven research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $245.15.
Get Our Latest Stock Report on RSG
About Republic Services
(
Get Free Report)
Republic Services, Inc is a leading provider of non-hazardous solid waste and recycling services in the United States. The company offers a broad range of waste management solutions to residential, commercial, industrial and municipal customers, positioning itself as a full-service partner for everyday waste collection as well as specialized disposal needs.
Republic's core operations include curbside and commercial collection, transfer and hauling, materials recovery and recycling facilities, and landfill disposal.
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