Waste Management (NYSE:WM) Shares Gap Down Following Weak Earnings

Shares of Waste Management, Inc. (NYSE:WM) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $235.81, but opened at $227.62. Waste Management shares last traded at $229.5760, with a volume of 372,444 shares traded.

The business services provider reported $2.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.18 by ($0.03). The company had revenue of $6.85 billion during the quarter, compared to analyst estimates of $6.81 billion. Waste Management’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same period in the prior year, the company earned $1.98 EPS.

Waste Management Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Friday, September 11th were given a $0.9450 dividend. The ex-dividend date was Friday, September 11th. This represents a $3.78 annualized dividend and a yield of 1.6%. Waste Management’s dividend payout ratio (DPR) is currently 53.54%.

More Waste Management News

Here are the key news stories impacting Waste Management this week:

• Positive Sentiment: Third-quarter revenue rose 6.3% year over year to $6.846 billion, exceeding the $6.81 billion analyst consensus. Reported EPS increased to $2.15 from $1.98 a year earlier, while adjusted operating results also improved. WM Announces Third Quarter 2026 Earnings
• Positive Sentiment: Waste Management provided an update on the equity buyback plan announced in December 2025. Continued repurchases can support per-share results and signal management’s confidence in the company’s valuation, although the latest update contains limited detail in the available report. Equity Buyback Plan Tranche Update
• Neutral Sentiment: The company’s adjusted third-quarter results showed stronger operating performance, but investors may focus on whether the improvement is sufficient to support expectations for approximately $8.09 in full-year EPS. Waste Management Third-Quarter Results
• Negative Sentiment: Quarterly EPS of $2.15 fell short of the $2.18 consensus estimate, representing a 1.38% earnings surprise to the downside. The miss likely pressured the stock despite the revenue beat and year-over-year profit growth. Waste Management Lags Q3 Earnings Estimates

Analysts Set New Price Targets

Several analysts recently commented on the company. Weiss Ratings upgraded Waste Management from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, October 16th. Canadian Imperial Bank of Commerce reduced their price target on Waste Management from $250.00 to $225.00 and set a “neutral” rating for the company in a research report on Thursday, October 8th. Barclays upped their price objective on shares of Waste Management from $270.00 to $277.00 and gave the stock an “overweight” rating in a report on Thursday, July 30th. Citigroup increased their target price on shares of Waste Management from $263.00 to $269.00 and gave the company a “buy” rating in a research report on Friday, July 10th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Waste Management from $270.00 to $235.00 and set an “overweight” rating on the stock in a research note on Thursday, October 8th. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Waste Management has an average rating of “Moderate Buy” and an average target price of $256.06.

Insider Activity at Waste Management

In related news, CAO John Carroll sold 1,365 shares of the firm’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $219.90, for a total transaction of $300,163.50. Following the completion of the transaction, the chief accounting officer owned 3,509 shares of the company’s stock, valued at $771,629.10. This trade represents a 28.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 0.18% of the company’s stock.

Institutional Investors Weigh In On Waste Management

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. grew its stake in shares of Waste Management by 1.8% in the 2nd quarter. BlackRock Inc. now owns 30,733,944 shares of the business services provider’s stock worth $6,849,981,000 after purchasing an additional 535,079 shares during the last quarter. State Street Corp raised its holdings in shares of Waste Management by 2.9% in the 2nd quarter. State Street Corp now owns 18,008,931 shares of the business services provider’s stock worth $4,013,831,000 after purchasing an additional 507,209 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in Waste Management by 1.1% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,121,427 shares of the business services provider’s stock valued at $695,704,000 after purchasing an additional 35,322 shares during the last quarter. Swedbank AB lifted its stake in Waste Management by 17.0% during the first quarter. Swedbank AB now owns 2,392,868 shares of the business services provider’s stock valued at $549,857,000 after purchasing an additional 348,183 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in Waste Management by 1.2% during the first quarter. Dimensional Fund Advisors LP now owns 2,320,966 shares of the business services provider’s stock worth $533,340,000 after buying an additional 26,847 shares in the last quarter. 80.40% of the stock is owned by institutional investors and hedge funds.

Waste Management Price Performance

The stock has a market capitalization of $91.76 billion, a P/E ratio of 32.50 and a beta of 0.42. The stock’s fifty day moving average is $217.55 and its two-hundred day moving average is $224.98.

About Waste Management

Waste Management, Inc, doing business as WM (NYSE:WM), is an environmental services company that provides waste collection, transportation, disposal, recycling and resource-recovery services. The company serves residential, commercial, industrial and municipal customers through a network of collection operations, transfer stations, landfills, recycling facilities and other environmental infrastructure.

WM’s services include curbside and commercial waste collection, construction and demolition debris management, recycling, organics processing and landfill disposal.