Zacks Investment Research upgraded shares of Republic Services Inc. (NYSE:RSG) from a hold rating to a buy rating in a report published on Wednesday morning. Zacks Investment Research currently has $57.00 target price 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 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 brokerages also recently weighed in on RSG. Macquarie began coverage on Republic Services in a report on Thursday, August 25th. They issued a neutral rating and a $53.00 price target for the company. Imperial Capital upped their price objective on Republic Services from $52.00 to $58.00 and gave the stock an outperform rating in a research note on Tuesday, August 2nd. Finally, Barclays PLC upped their price objective on Republic Services from $52.00 to $56.00 and gave the stock an overweight rating in a research note on Tuesday, August 9th. Six investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The stock has an average rating of Buy and a consensus target price of $51.90.
Shares of Republic Services (NYSE:RSG) traded down 0.10% during midday trading on Wednesday, hitting $50.22. The company had a trading volume of 113,039 shares. Republic Services has a 12 month low of $40.67 and a 12 month high of $52.92. The stock’s 50-day moving average price is $50.83 and its 200-day moving average price is $49.45. The company has a market cap of $17.22 billion, a price-to-earnings ratio of 24.13 and a beta of 0.59.
Republic Services (NYSE:RSG) last announced its earnings results on Thursday, July 28th. The company reported $0.55 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.55. Republic Services had a return on equity of 9.21% and a net margin of 7.85%. The company had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.38 billion. During the same period in the prior year, the company posted $0.54 EPS. Republic Services’s quarterly revenue was up 1.7% on a year-over-year basis. On average, equities research analysts forecast that Republic Services will post $2.16 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, October 14th. Stockholders of record on Monday, October 3rd will be issued a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 2.53%. This is an increase 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 is currently 57.97%.
In other news, CAO Brian A. Goebel sold 1,695 shares of the company’s stock in a transaction on Tuesday, July 5th. The stock was sold at an average price of $52.10, for a total transaction of $88,309.50. Following the completion of the sale, the chief accounting officer now directly owns 6,391 shares of the company’s stock, valued at $332,971.10. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 0.50% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. PineBridge Investments L.P. raised its position in shares of Republic Services by 526.7% in the second quarter. PineBridge Investments L.P. now owns 2,933 shares of the company’s stock valued at $150,000 after buying an additional 2,465 shares during the last quarter. Mizuho Asset Management Co. Ltd. raised its position in shares of Republic Services by 73.2% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 3,005 shares of the company’s stock valued at $154,000 after buying an additional 1,270 shares during the last quarter. Farmers National Bank purchased a new position in shares of Republic Services during the second quarter valued at $183,000. IFP Advisors Inc raised its position in shares of Republic Services by 45.0% in the first quarter. IFP Advisors Inc now owns 4,198 shares of the company’s stock valued at $200,000 after buying an additional 1,303 shares during the last quarter. Finally, Reynolds Capital Management LLC purchased a new position in shares of Republic Services during the first quarter valued at $210,000. 61.01% of the stock is currently owned by hedge funds and other institutional investors.
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.
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