Casella Waste Systems: A Comprehensive Analysis of the Stock
On June 16, 2023, shares of NASDAQ CWST began trading at $87.41, representing a positive sentiment among investors. The company has a current ratio of 1.29 and a quick ratio of 1.20 indicating that the firm is well-positioned to pay its short-term liabilities without major disruptions in its operations. However, it also has a debt-to-equity ratio of 1.15 implying that the company may face difficulty in repaying its long-term debts.
Casella Waste Systems has been on an upward trajectory for the past year with a one-year low of $63.90 and a one-year high of $95.78. With a 50-day and two-hundred-day moving average price of $90.11 and $83.57 respectively, this indicates that there has been sustained momentum in value appreciation over time.
The firm boasts a market capitalization of $4.54 billion, which puts them in an enviable position within their sector, enabling them to leverage their scale to optimize costs and profits while consolidating more acquisitions.
However, with the securities being traded at an expensive price compared to earnings, investors should take note before committing their investment funds since Casella Waste Systems holds an elevated Price-Earnings (PE) ratio of 86.55 with PEG (Price Earnings Growth) Ratio going as high as 4.90 and Beta at 0.93 meaning that the stock is overvalued.
Several industry analysts have recently commented on CWST stock as well; Stifel Nicolaus raised their price target from $94 to $103 on May 15th which indicates bullishness about further upside in prices rather than downside potentials for investors.
Bank of America’s recent boost also saw prices rise beyond previous estimates from around $79 to approximately $89-a movement which suggests that the market sentiment towards Casella Waste Systems is gaining in optimism.
However, Raymond James downgraded CWST from a strong buy rating to a moderate buy rating while also cutting its price target to $90 from $92 on February 23. Overall, data from Bloomberg shows that based on investor feedback, consensus ratings hover around “moderate buy”, with an average target price of $94.40.
Casella Waste Systems operates as a vertically integrated solid waste services firm in the northeastern United States, offering resource management services mainly in the areas of solid waste collection and disposal, transfer, recycling and organic services to residential, commercial, municipal, institutional, and industrial customers.
The latest earnings report by Casella Waste Systems in April 2023 showed positive results against estimated figures. The company reported EPS of $0.10 for the quarter that surpassed analysts’ expectations of earning per share estimates valued at $0.08 by $0.02.
Overall, despite the overvaluation issue hinting towards downside potentials and lower return probability to stockholders. It is still advisable for investors considering trading in CWST stock to conduct thorough research before making investment decisions since many industry experts believe there is still room for price appreciation following multi-plane bullish recommendations coming amid the recent positive Q2 earnings results announced last month.
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Large Investors and KeyCorp Upgrades Earnings Estimates for Casella Waste Systems, Indicating Potential Growth in Industrial Products Market
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”CWST” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]Casella Waste Systems is an industrial products company that has been making waves in the stock market. Recently, KeyCorp has increased its earnings per share estimates for the company for FY2023. The new forecast by the equity researchers suggests that Casella Waste Systems will post earnings of $1.24 per share for the year, which is higher than their previous prediction of $1.15.
According to KeyCorp analyst S. Eastman, this boost in earnings could be attributed to several large investors making changes to their positions in the stock. Royal Bank of Canada, Mirae Asset Global Investments Co., and HBK Sorce Advisory LLC have all either lifted their holdings in Casella Waste Systems or acquired new stakes in it.
Royal Bank of Canada now owns 157,630 shares of Casella Waste Systems worth $12,041,000 after buying an additional 3,487 shares during the last quarter. FDx Advisors Inc., on the other hand, purchased a new stake in shares of Casella Waste Systems worth $326,000 during the 4th quarter.
Mirae Asset Global Investments Co., Ltd., meanwhile, grew its stake in Casella Waste Systems by 3.3% in the 4th quarter and now holds about 21,682 shares of its stock valued at $1,720,000 after buying an additional 702 shares.
Zacks Investment Management also bought a new position in Casella Waste Systems worth $642,000 during the 3rd quarter.
Lastly, HBK Sorce Advisory LLC lifted its position in Casella Waste Systems dramatically by acquiring an additional 20,516 shares during Q4 of FY2024 to own a total of 41,o32 at a total value of about $3,254,o00.
These institutional investors holding nearly all (>96%) of the company’s stock and their investments affirming faith in this waste removal services giant speaks volumes to its potential for growth. Indeed, KeyCorp has also issued optimistic estimates for Casella Waste Systems’ FY2024 earnings at $1.47 EPS.
In conclusion, the latest movements of large investors and the upgraded earnings per share estimates by KeyCorp have all been pointing towards an upward trend for Casella Waste Systems. Investors looking for promising opportunities in the industrial products market should keep a close eye on this stock for future developments.
