According to Zacks, “Republic Services' operation in a highly competitive solid waste industry remains a concern. Weak landfill pricing is likely to weigh on the company's margins and earnings. High debt may limit Republic Services' future expansion and worsen its risk profile. On the flip side, the company continues to grow internally through long-term contracts for the collection, recycling and disposal of solid waste materials. It is focused on increasing its operational efficiency by shifting to compressed natural gas collection vehicles and converting rear-loading trucks to automated-side loaders to reduce costs and improve profitability. The company’s shares have outperformed its industry in the past year.”
RSG has been the subject of several other reports. UBS Group cut Republic Services from a buy rating to a neutral rating and reduced their price target for the company from $83.00 to $77.00 in a research report on Thursday, January 10th. Stifel Nicolaus cut Republic Services from a buy rating to a hold rating and set a $86.00 price target for the company. in a research report on Thursday, April 11th. Finally, KeyCorp began coverage on Republic Services in a research report on Monday, February 4th. They issued a sector weight rating and a $77.73 price objective for the company. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and three have issued a buy rating to the company. The company currently has an average rating of Hold and an average target price of $79.10.
Republic Services (NYSE:RSG) last issued its quarterly earnings results on Thursday, February 7th. The business services provider reported $0.80 EPS for the quarter, beating the consensus estimate of $0.78 by $0.02. Republic Services had a return on equity of 12.84% and a net margin of 10.33%. The firm had revenue of $2.53 billion during the quarter, compared to analysts’ expectations of $2.54 billion. During the same period in the prior year, the firm posted $0.61 earnings per share. The business’s quarterly revenue was down 1.2% compared to the same quarter last year. As a group, equities research analysts anticipate that Republic Services will post 3.25 EPS for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, April 15th. Stockholders of record on Monday, April 1st were given a $0.375 dividend. The ex-dividend date of this dividend was Friday, March 29th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 1.90%. Republic Services’s payout ratio is 48.54%.
In other news, Director Tomago Collins sold 4,102 shares of the firm’s stock in a transaction that occurred on Wednesday, March 27th. The stock was sold at an average price of $80.59, for a total value of $330,580.18. Following the completion of the sale, the director now directly owns 14,821 shares of the company’s stock, valued at $1,194,424.39. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Jeffrey A. Hughes sold 10,118 shares of the firm’s stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $80.40, for a total value of $813,487.20. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 21,700 shares of company stock valued at $1,729,597. Insiders own 0.30% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in RSG. FMR LLC increased its stake in shares of Republic Services by 1.6% during the third quarter. FMR LLC now owns 60,916 shares of the business services provider’s stock worth $4,426,000 after purchasing an additional 935 shares during the period. GSA Capital Partners LLP bought a new position in shares of Republic Services during the third quarter worth approximately $782,000. LPL Financial LLC increased its stake in shares of Republic Services by 9.7% during the third quarter. LPL Financial LLC now owns 22,492 shares of the business services provider’s stock worth $1,634,000 after purchasing an additional 1,987 shares during the period. Pacer Advisors Inc. increased its stake in shares of Republic Services by 13.9% during the third quarter. Pacer Advisors Inc. now owns 11,690 shares of the business services provider’s stock worth $849,000 after purchasing an additional 1,428 shares during the period. Finally, Caxton Associates LP bought a new position in shares of Republic Services during the third quarter worth approximately $338,000. 60.76% of the stock is owned by institutional investors.
About Republic Services
Republic Services, Inc, together with its subsidiaries, provides non-hazardous solid waste collection, transfer, recycling, disposal, and energy services for small-container, large-container, municipal and residential, and energy services customers in the United States and Puerto Rico. The company's collection services include curbside collection of waste for transport to transfer stations, landfills, or recycling processing centers; supply of waste containers; and renting of compactors.
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