Zacks Investment Research downgraded shares of Republic Services (NYSE:RSG) from a buy rating to a hold rating in a report issued on Tuesday.
According to Zacks, “Republic Services continues to generate significant free cash flow, which is utilized for increased dividend payment, repurchasing shares and strategic acquisitions. The company is currently focusing on a series of quality acquisition opportunities for a healthy long-term growth. It is also transitioning to a fee-based recycling processing model to cover processing costs and generate a healthy ROI. The stock has outperformed the industry in the last three months. However, the company’s performance is likely to be hurt by protracted weakness in special waste, industrial volumes and tight municipal budgets. Changing regulations impose new compliance requirements on Republic Services, which may alter its current method of doing business and ultimately increase costs and compress margins. The ability to adequately increase pricing to offset wage and other cost inflation to avoid margin erosion remains another concern.”
RSG has been the topic of several other reports. Stifel Nicolaus upgraded Republic Services from a hold rating to a buy rating and lifted their target price for the stock from $70.00 to $73.00 in a report on Thursday, January 4th. BMO Capital Markets reduced their target price on Republic Services from $74.00 to $70.00 and set an outperform rating on the stock in a report on Friday, February 9th. UBS began coverage on Republic Services in a report on Wednesday, March 14th. They set a buy rating and a $78.00 target price on the stock. Credit Suisse Group reduced their target price on Republic Services from $67.00 to $64.00 and set a neutral rating on the stock in a report on Monday, February 12th. Finally, Bank of America lifted their target price on Republic Services from $70.00 to $73.00 and gave the stock a buy rating in a report on Monday, February 5th. One investment analyst has rated the stock with a sell rating, six have given a hold rating and five have issued a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus target price of $69.75.
Republic Services (NYSE RSG) opened at $68.58 on Tuesday. Republic Services has a 12-month low of $60.26 and a 12-month high of $69.40. The company has a debt-to-equity ratio of 0.94, a current ratio of 0.55 and a quick ratio of 0.55. The stock has a market capitalization of $22,724.56, a price-to-earnings ratio of 28.12, a PEG ratio of 2.18 and a beta of 0.55.
Republic Services (NYSE:RSG) last posted its quarterly earnings results on Thursday, February 8th. The business services provider reported $0.61 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.57 by $0.04. Republic Services had a return on equity of 10.61% and a net margin of 12.73%. The business had revenue of $2.56 billion for the quarter, compared to analyst estimates of $2.52 billion. During the same period last year, the company earned $0.57 EPS. The firm’s revenue was up 7.6% on a year-over-year basis. research analysts anticipate that Republic Services will post 3.08 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, April 16th. Shareholders of record on Monday, April 2nd will be issued a dividend of $0.345 per share. The ex-dividend date of this dividend is Thursday, March 29th. This represents a $1.38 annualized dividend and a yield of 2.01%. Republic Services’s dividend payout ratio is presently 36.41%.
In other news, CAO Brian A. Goebel sold 2,000 shares of the business’s stock in a transaction dated Thursday, January 11th. The stock was sold at an average price of $67.57, for a total value of $135,140.00. Following the sale, the chief accounting officer now directly owns 6,696 shares in the company, valued at $452,448.72. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Brian A. Goebel sold 1,290 shares of the business’s stock in a transaction dated Wednesday, January 17th. The shares were sold at an average price of $68.44, for a total value of $88,287.60. Following the completion of the sale, the chief accounting officer now owns 6,696 shares in the company, valued at $458,274.24. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 23,128 shares of company stock worth $1,553,897. Corporate insiders own 0.40% of the company’s stock.
Institutional investors have recently modified their holdings of the company. SeaCrest Wealth Management LLC bought a new stake in shares of Republic Services in the fourth quarter valued at about $121,000. Benjamin F. Edwards & Company Inc. lifted its holdings in shares of Republic Services by 507.7% in the fourth quarter. Benjamin F. Edwards & Company Inc. now owns 1,823 shares of the business services provider’s stock valued at $123,000 after purchasing an additional 1,523 shares in the last quarter. Tower Research Capital LLC TRC lifted its holdings in shares of Republic Services by 1,070.1% in the fourth quarter. Tower Research Capital LLC TRC now owns 2,937 shares of the business services provider’s stock valued at $199,000 after purchasing an additional 2,686 shares in the last quarter. Focused Wealth Management Inc bought a new stake in shares of Republic Services in the fourth quarter valued at about $199,000. Finally, Welch & Forbes LLC bought a new stake in shares of Republic Services in the fourth quarter valued at about $201,000. Institutional investors own 61.06% of the company’s stock.
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Republic Services Company Profile
Republic Services, Inc is a provider of non-hazardous solid waste collection, transfer, disposal, recycling and energy services. The Company’s segments include Group 1, Group 2 and Corporate entities. Its Group 1 and Group 2 segments provide integrated waste management services. Group 1 consists of geographic areas located in the western and portions of the mid-western United States.
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