Republic Services Inc. (RSG) Upgraded to “Buy” at Zacks Investment Research
Republic Services Inc. (NYSE:RSG) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The firm presently has a $57.00 price target on the stock. Zacks Investment Research’s price objective suggests a potential upside of 12.27% from the stock’s previous close.
According to Zacks, “Republic Services is focused on enhancing its operations by streamlining the cost structure, improving revenue quality and seeking growth through profitable investment opportunities. The company is realigning its field support functions by combining two organizational layers into one and expects these initiatives to contribute about $25 million of annual cost savings from 2018. Republic Services reaffirmed its earlier 2016 adjusted earnings per share and adjusted free cash flow guidance. The company has a positive earnings history in the trailing four quarters. Earnings estimates have also remained steady over the last 30 days. However, it remains exposed to commodity price headwinds and protracted weakness in special waste, industrial volumes and tight municipal budgets, which will likely have a negative impact on earnings. Margins are also expected to remain constrained in the future quarters as well.”
A number of other research analysts have also issued reports on RSG. Barclays PLC raised their target price on shares of Republic Services from $52.00 to $56.00 and gave the company an “overweight” rating in a research note on Tuesday, August 9th. Macquarie assumed coverage on shares of Republic Services in a research note on Thursday, August 25th. They issued a “neutral” rating and a $53.00 target price on the stock. Finally, Imperial Capital raised their target price on shares of Republic Services from $52.00 to $58.00 and gave the company an “outperform” rating in a research note on Tuesday, August 2nd. Six research analysts have rated the stock with a hold rating and six have given a buy rating to the company. Republic Services presently has a consensus rating of “Buy” and a consensus target price of $51.90.
Republic Services (NYSE:RSG) traded down 0.79% during midday trading on Wednesday, reaching $50.37. 583,846 shares of the company traded hands. The firm has a market capitalization of $17.27 billion, a price-to-earnings ratio of 24.20 and a beta of 0.59. The firm’s 50 day moving average price is $50.84 and its 200 day moving average price is $49.44. Republic Services has a 12 month low of $40.58 and a 12 month high of $52.92.
Republic Services (NYSE:RSG) last posted its earnings results on Thursday, July 28th. The company reported $0.55 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.55. Republic Services had a net margin of 7.85% and a return on equity of 9.21%. The business had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.38 billion. During the same period last year, the business posted $0.54 EPS. Republic Services’s revenue was up 1.7% compared to the same quarter last year. On average, analysts expect that Republic Services will post $2.16 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Friday, October 14th. Shareholders of record on Monday, October 3rd will be given a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 2.52%. This is a positive change from Republic Services’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Thursday, September 29th. Republic Services’s dividend payout ratio (DPR) is currently 57.97%.
In other news, CAO Brian A. Goebel sold 3,780 shares of Republic Services stock in a transaction dated Thursday, June 30th. The shares were sold at an average price of $50.83, for a total transaction of $192,137.40. Following the sale, the chief accounting officer now directly owns 7,671 shares in the company, valued at approximately $389,916.93. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Brian A. Goebel sold 1,695 shares of Republic Services stock in a transaction dated Tuesday, July 5th. The shares were sold at an average price of $52.10, for a total transaction of $88,309.50. Following the sale, the chief accounting officer now owns 6,391 shares in the company, valued at $332,971.10. The disclosure for this sale can be found here. 0.50% of the stock is currently owned by company insiders.
Several hedge funds have recently modified their holdings of RSG. BlackRock Institutional Trust Company N.A. raised its stake in shares of Republic Services by 5.9% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 7,310,027 shares of the company’s stock valued at $348,323,000 after buying an additional 408,045 shares during the period. BlackRock Group LTD raised its stake in shares of Republic Services by 10.6% in the first quarter. BlackRock Group LTD now owns 2,655,591 shares of the company’s stock valued at $126,539,000 after buying an additional 255,506 shares during the period. FDO Partners LLC acquired a new stake in shares of Republic Services during the first quarter valued at $365,000. CLS Investments LLC raised its stake in shares of Republic Services by 53.7% in the first quarter. CLS Investments LLC now owns 26,717 shares of the company’s stock valued at $1,273,000 after buying an additional 9,338 shares during the period. Finally, Stratos Wealth Partners LTD. raised its stake in shares of Republic Services by 352.3% in the first quarter. Stratos Wealth Partners LTD. now owns 20,742 shares of the company’s stock valued at $988,000 after buying an additional 16,156 shares during the period. Institutional investors and hedge funds own 61.01% of the company’s stock.
Republic Services Company Profile
Republic Services, Inc is a provider of non-hazardous solid waste collection, transfer, disposal, recycling and energy services in the United States. The Company operates through three segments: East, Central and West. The Company operates in over 40 states and Puerto Rico through approximately 340 collection operations, over 200 transfer stations, over 190 active landfills, approximately 70 recycling centers, approximately 10 treatment, recovery and disposal facilities, and over 10 salt water disposal wells.
Receive News & Stock Ratings for Republic Services Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Republic Services Inc. and related stocks with our FREE daily email newsletter.