Major Purchase Alert: Maryrose Sylvester Invests $158K In Waste Management Stock

Maryrose Sylvester, Board Member at Waste Management (NYSE:WM), disclosed an insider purchase on July 16, based on a new SEC filing.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Sylvester purchased 696 shares of Waste Management, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $158,301.

As of Thursday morning, Waste Management shares are down by 0.58%, currently priced at $224.55.

Delving into Waste Management's Background

WM ranks as the largest integrated provider of traditional solid waste and medical waste services in the United States, operating 262 active landfills, about 506 solid and medical waste transfer stations, and 105 recycling facilities. The company serves residential, commercial, industrial, and medical end markets and is also a leading recycler in North America.

Unraveling the Financial Story of Waste Management

Revenue Growth: Waste Management's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 16.65%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 39.4%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Waste Management's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.58.

Debt Management: Waste Management's debt-to-equity ratio stands notably higher than the industry average, reaching 2.76. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 34.02 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.98 is above industry norms, reflecting an elevated valuation for Waste Management's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 17.65 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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The Impact of Insider Transactions on Investments

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Deciphering Transaction Codes in Insider Filings

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Waste Management's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.