Zacks Investment Research upgraded shares of Republic Services Inc. (NYSE:RSG) from a hold rating to a buy rating in a report released on Tuesday. They currently have $57.00 price objective on the stock.
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 and expects these initiatives to contribute about $25 million of annual cost savings from 2018. The new organizational structure is likely to ensure a clear ownership for the recycling and processing market vertical. 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.”
Other equities research analysts also recently issued research reports about the company. Barclays PLC increased their target price on Republic Services from $52.00 to $56.00 and gave the stock an overweight rating in a research report on Tuesday, August 9th. Deutsche Bank AG downgraded Republic Services from a buy rating to a hold rating and increased their target price for the stock from $108.00 to $112.00 in a research report on Saturday, October 22nd. Imperial Capital increased their target price on Republic Services from $52.00 to $58.00 and gave the stock an outperform rating in a research report on Tuesday, August 2nd. Finally, Macquarie assumed coverage on Republic Services in a research report on Thursday, August 25th. They issued a neutral rating and a $53.00 price objective on the stock. Seven analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. Republic Services presently has a consensus rating of Hold and a consensus target price of $57.36.
Shares of Republic Services (NYSE:RSG) opened at 51.98 on Tuesday. The company’s 50-day moving average price is $50.33 and its 200-day moving average price is $49.85. The company has a market cap of $17.71 billion, a price-to-earnings ratio of 30.22 and a beta of 0.54. Republic Services has a 12 month low of $41.82 and a 12 month high of $52.92.
Republic Services (NYSE:RSG) last posted its earnings results on Thursday, October 27th. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.04. The firm had revenue of $2.41 billion for the quarter, compared to the consensus estimate of $2.40 billion. Republic Services had a return on equity of 9.62% and a net margin of 6.40%. The business’s quarterly revenue was up 2.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.53 earnings per share. Analysts anticipate that Republic Services will post $2.18 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, January 16th. Investors of record on Tuesday, January 3rd will be paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 2.46%. Republic Services’s dividend payout ratio is presently 74.85%.
In other news, insider Donald W. Slager sold 26,000 shares of the firm’s stock in a transaction dated Monday, October 3rd. The stock was sold at an average price of $50.37, for a total transaction of $1,309,620.00. Following the transaction, the insider now directly owns 234,397 shares of the company’s stock, valued at $11,806,576.89. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.50% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Cohen & Steers Inc. boosted its position in shares of Republic Services by 77,955.4% in the second quarter. Cohen & Steers Inc. now owns 2,107,495 shares of the company’s stock worth $134,711,000 after buying an additional 2,104,795 shares during the period. BlackRock Fund Advisors boosted its position in shares of Republic Services by 21.9% in the second quarter. BlackRock Fund Advisors now owns 7,074,214 shares of the company’s stock worth $362,978,000 after buying an additional 1,270,660 shares during the period. Bank of Montreal Can bought a new position in shares of Republic Services during the second quarter worth about $46,588,000. JPMorgan Chase & Co. boosted its position in shares of Republic Services by 19.1% in the second quarter. JPMorgan Chase & Co. now owns 4,423,451 shares of the company’s stock worth $226,969,000 after buying an additional 708,511 shares during the period. Finally, AQR Capital Management LLC boosted its position in shares of Republic Services by 24.2% in the second quarter. AQR Capital Management LLC now owns 3,247,368 shares of the company’s stock worth $166,622,000 after buying an additional 631,716 shares during the period. 61.01% of the stock is currently owned by hedge funds and other institutional investors.
About Republic Services
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.