Wedbush Comments on Covanta Holding Corp.’s FY2016 Earnings (CVA)
Covanta Holding Corp. (NYSE:CVA) – Wedbush increased their FY2016 earnings per share estimates for shares of Covanta Holding Corp. in a note issued to investors on Thursday. Wedbush analyst A. Kaschalk now anticipates that the brokerage will earn ($0.10) per share for the year, up from their prior estimate of ($0.12). Wedbush also issued estimates for Covanta Holding Corp.’s Q2 2017 earnings at ($0.06) EPS, Q3 2017 earnings at $0.16 EPS, Q1 2018 earnings at ($0.05) EPS, Q2 2018 earnings at $0.00 EPS, FY2018 earnings at $0.48 EPS and FY2019 earnings at $0.51 EPS.
Covanta Holding Corp. (NYSE:CVA) last issued its quarterly earnings data on Tuesday, July 26th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.05) by $0.17. The firm had revenue of $418 million for the quarter, compared to analysts’ expectations of $410.38 million. Covanta Holding Corp. had a negative return on equity of 3.48% and a net margin of 2.69%. The firm’s revenue was up 2.5% on a year-over-year basis. During the same period last year, the company earned ($0.06) earnings per share.
Several other research firms have also commented on CVA. Zacks Investment Research lowered Covanta Holding Corp. from a “hold” rating to a “strong sell” rating in a report on Wednesday, July 20th. Imperial Capital dropped their target price on Covanta Holding Corp. from $18.50 to $18.00 and set an “outperform” rating on the stock in a report on Thursday, July 28th. Oppenheimer Holdings Inc. reaffirmed an “outperform” rating and set a $20.00 target price on shares of Covanta Holding Corp. in a report on Friday, September 23rd. Barclays PLC dropped their target price on Covanta Holding Corp. from $17.00 to $16.00 and set an “equal weight” rating on the stock in a report on Tuesday, August 9th. Finally, Macquarie assumed coverage on Covanta Holding Corp. in a report on Thursday, August 25th. They set a “neutral” rating and a $18.00 target price on the stock. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $18.00.
Shares of Covanta Holding Corp. (NYSE:CVA) opened at 15.39 on Monday. The stock’s 50 day moving average price is $14.96 and its 200 day moving average price is $16.10. The stock has a market capitalization of $1.99 billion, a PE ratio of 44.61 and a beta of 0.61. Covanta Holding Corp. has a one year low of $12.48 and a one year high of $18.36.
Several institutional investors have recently added to or reduced their stakes in CVA. Capital International Investors increased its position in Covanta Holding Corp. by 11.3% in the second quarter. Capital International Investors now owns 13,127,185 shares of the company’s stock valued at $215,942,000 after buying an additional 1,335,132 shares during the period. Dimensional Fund Advisors LP increased its position in Covanta Holding Corp. by 2.9% in the second quarter. Dimensional Fund Advisors LP now owns 8,867,574 shares of the company’s stock valued at $145,870,000 after buying an additional 247,452 shares during the period. Vanguard Group Inc. increased its position in Covanta Holding Corp. by 1.5% in the second quarter. Vanguard Group Inc. now owns 8,675,038 shares of the company’s stock valued at $142,704,000 after buying an additional 131,190 shares during the period. BlackRock Institutional Trust Company N.A. increased its position in Covanta Holding Corp. by 7.3% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 3,298,175 shares of the company’s stock valued at $54,255,000 after buying an additional 224,743 shares during the period. Finally, Thompson Siegel & Walmsley LLC increased its position in Covanta Holding Corp. by 1.9% in the second quarter. Thompson Siegel & Walmsley LLC now owns 3,024,603 shares of the company’s stock valued at $49,755,000 after buying an additional 57,426 shares during the period. Institutional investors and hedge funds own 80.15% of the company’s stock.
In other news, Director Ronald J. Broglio sold 4,500 shares of the firm’s stock in a transaction that occurred on Thursday, July 28th. The stock was sold at an average price of $15.78, for a total value of $71,010.00. Following the transaction, the director now owns 4,529 shares in the company, valued at $71,467.62. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 11.80% of the stock is owned by insiders.
The company also recently announced a quarterly dividend, which will be paid on Friday, October 7th. Stockholders of record on Monday, October 3rd will be given a $0.25 dividend. The ex-dividend date is Thursday, September 29th. This represents a $1.00 annualized dividend and a dividend yield of 6.50%. Covanta Holding Corp.’s dividend payout ratio (DPR) is presently 322.58%.
About Covanta Holding Corp.
Covanta Holding Corporation is a holding company. The Company, through its subsidiaries, owns and operates infrastructure for the conversion of waste to energy, as well as other waste disposal and renewable energy production businesses. It operates through North America segment, which consists of waste and energy services operations located primarily in the United States and Canada.
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