Rakuten Investment Management Inc. bought a new stake in Republic Services, Inc. (NYSE:RSG – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 32,757 shares of the business services provider’s stock, valued at approximately $7,032,000.
Other hedge funds and other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in Republic Services in the 2nd quarter valued at about $3,798,092,000. Bank of America Corp DE purchased a new position in shares of Republic Services in the second quarter valued at approximately $682,573,000. Norges Bank acquired a new position in shares of Republic Services in the fourth quarter valued at approximately $617,165,000. Capital World Investors increased its stake in Republic Services by 27.7% during the 4th quarter. Capital World Investors now owns 8,765,623 shares of the business services provider’s stock worth $1,857,698,000 after buying an additional 1,899,183 shares during the period. Finally, Morgan Stanley lifted its holdings in Republic Services by 38.6% during the 4th quarter. Morgan Stanley now owns 5,348,501 shares of the business services provider’s stock worth $1,133,509,000 after buying an additional 1,490,719 shares in the last quarter. 57.73% of the stock is currently owned by hedge funds and other institutional investors.
Republic Services Stock Up 1.4%
Shares of NYSE:RSG opened at $222.24 on Friday. The firm has a 50 day simple moving average of $216.42 and a 200-day simple moving average of $215.19. Republic Services, Inc. has a twelve month low of $196.41 and a twelve month high of $235.18. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 1.12. The company has a market capitalization of $68.05 billion, a PE ratio of 31.48, a P/E/G ratio of 3.68 and a beta of 0.40.
Republic Services Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Friday, October 2nd will be given a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a dividend yield of 1.2%. This is an increase from Republic Services’s previous quarterly dividend of $0.62. The ex-dividend date is Friday, October 2nd. Republic Services’s payout ratio is presently 35.41%.
Wall Street Analyst Weigh In
RSG has been the subject of several research reports. Royal Bank Of Canada boosted their price target on shares of Republic Services from $265.00 to $267.00 and gave the stock an “outperform” rating in a research note on Friday, May 8th. Citigroup boosted their target price on Republic Services from $247.00 to $259.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Morgan Stanley set a $232.00 price target on Republic Services in a research report on Friday, August 7th. Canadian Imperial Bank of Commerce reiterated an “outperform” rating and issued a $249.00 price objective on shares of Republic Services in a research note on Friday, May 8th. Finally, Barclays upped their target price on shares of Republic Services from $233.00 to $240.00 and gave the stock an “equal weight” rating in a research note on Friday, August 7th. Twelve equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat, Republic Services presently has a consensus rating of “Moderate Buy” and an average target price of $245.26.
Read Our Latest Stock Report on RSG
Republic Services News Roundup
Here are the key news stories impacting Republic Services this week:
- Positive Sentiment: Cascade Investment continued its aggressive accumulation of RSG. The major shareholder purchased 284,600 shares on August 27 for approximately $62.5 million and 275,500 shares on August 26 for about $61.0 million. These purchases followed a $59.8 million acquisition on August 25 and a series of additional open-market buys. Recent disclosures indicate Cascade has bought more than 3.5 million shares worth approximately $764 million over six months, a potential signal of long-term confidence in Republic Services. Major Investment Powerhouse Makes Massive New Move Into Republic Services Stock
- Positive Sentiment: Analyst sentiment remains constructive. Republic Services carries a consensus “Moderate Buy” rating, with 12 Buy ratings and 10 Holds. The average price target is approximately $245, above recent trading levels, while Citigroup and RBC Capital Markets have set targets of $259 and $267, respectively. Republic Services Receives Consensus Rating of Moderate Buy
- Positive Sentiment: The dividend was raised. Republic Services increased its quarterly dividend to $0.67 from $0.62, equivalent to $2.68 annually and a yield of about 1.2%. The increase reinforces the company’s shareholder-return profile.
- Neutral Sentiment: Recent coverage also highlighted Republic Services as a participant in the broader circular-economy and recycling investment theme. The company’s latest quarter included revenue growth of 4.6% and an EPS beat, but those results were reported earlier and are likely already reflected in the valuation.
- Negative Sentiment: At roughly 31 times earnings and a PEG ratio above 3.5, RSG is priced at a premium. Some institutional investors reduced holdings recently, and UBS maintains a neutral rating, limiting the potential impact of the bullish signals.
Insider Buying and Selling at Republic Services
In other news, major shareholder Cascade Investment, L.L.C. bought 284,600 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The stock was purchased at an average cost of $219.52 per share, with a total value of $62,475,392.00. Following the transaction, the insider directly owned 113,935,127 shares in the company, valued at $25,011,039,079.04. This trade represents a 0.25% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Over the last ninety days, insiders bought 3,131,145 shares of company stock valued at $685,244,030. 0.12% of the stock is currently owned by insiders.
Republic Services Profile
Republic Services, Inc is a leading provider of non-hazardous solid waste and recycling services in the United States. The company offers a broad range of waste management solutions to residential, commercial, industrial and municipal customers, positioning itself as a full-service partner for everyday waste collection as well as specialized disposal needs.
Republic’s core operations include curbside and commercial collection, transfer and hauling, materials recovery and recycling facilities, and landfill disposal.
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