Brian M. DelGhiaccio, the Executive Vice President and Chief Financial Officer of Republic Services, Inc. (NYSE:RSG), recently sold 5,071 shares of the company's common stock. The shares were sold at an average price of $210.02 each, resulting in a total transaction value of approximately $1,065,011. Following this sale, DelGhiaccio retains ownership of 6,318 shares in the company. Republic Services is a leading provider in the U.S. waste management industry, headquartered in Phoenix, Arizona.
In other recent news, Republic Services showcased a robust financial performance in the third quarter of 2024, with a 7% revenue growth and a 14% rise in adjusted EBITDA. The company also noted an adjusted EBITDA margin expansion of 210 basis points, and an adjusted earnings per share of $1.81. The year-to-date adjusted free cash flow was reported at $1.4 billion. TD Cowen has raised its price target for Republic Services to $220, maintaining a Hold rating on the stock. The firm cites a strong fourth quarter for the company and anticipates increased waste volumes due to hurricane-related cleanups. Republic Services also revealed its plans to close over $200 million in acquisitions by year-end, returning $834 million to shareholders. The company's future growth is expected to be driven by investments in digital capabilities, sustainability, and fleet management. These recent developments highlight Republic Services' strategic approach to sustained success in the waste management industry.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Republic Services' financial position and market performance. As of the latest available information, the company boasts a substantial market capitalization of $66.03 billion, underscoring its significant presence in the Commercial Services & Supplies industry.
Republic Services has demonstrated strong financial performance, with revenue reaching $15.82 billion over the last twelve months as of Q3 2024, representing a growth of 7.88%. This solid top-line expansion is complemented by a healthy gross profit margin of 42.34% and an operating income margin of 19.79%, indicating efficient cost management and operational effectiveness.
Investors should note that Republic Services is trading at a P/E ratio of 33.58, which may be considered high relative to its near-term earnings growth potential. This valuation metric aligns with one of the InvestingPro Tips, which suggests that the stock is "Trading at a high earnings multiple." Despite this, the company has demonstrated a strong track record of shareholder returns, with a one-year price total return of 33.28% as of the most recent data.
An InvestingPro Tip highlights that Republic Services "Has raised its dividend for 21 consecutive years," reflecting a commitment to returning value to shareholders. This is further supported by a current dividend yield of 1.11% and a dividend growth rate of 8.41% over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Republic Services, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable when considering the recent insider sale by the CFO and its potential implications for the stock's future performance.
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