We recently published a list of 10 Stocks Insiders Are Selling In March. In this article, we are going to take a look at where Waste Management, Inc. (NYSE:WM) stands against other stocks Insiders are selling in March.
Wall Street experienced a challenging week, marked by turbulence as the broader market entered a correction, declining 10.1% from its record high in February. All three major indexes dropped between 2.3% and 3.1% over the week. However, Friday brought a little more optimism among investors as all three major indexes closed a bit higher. Blue-chip stocks closed 1.65% higher, the broader market index gained 2.13% and the NASDAQ Composite closed Friday session 2.61% higher.
This week continues to keep investors on their toes as the U.S. retail sales report, scheduled for release on Monday, will provide insights into consumer spending. According to Yahoo Finance, some experts believe investors will closely examine the report for signs of an economic slowdown. Experts polled by Dow Jones expect retail sales to have increased by 0.6% last month.
Investors are also closely watching for another significant update this week: the Federal Reserve’s decision on interest rates. Since September, the Fed has cut interest rates three times and still, the broader market entered a correction.
Examining recent insider trades can offer valuable insights, as executives often have a deeper understanding of their companies. For instance, when a CEO or CFO buys company stock, it may signal strong confidence in the business’s future.
However, insider selling doesn’t necessarily reflect a lack of confidence; it could be due to personal financial needs or a desire to diversify investments. These transactions are often executed through pre-arranged plans, like 10b5-1 plans, to avoid any appearance of improper timing. While insider activity can be informative, it’s important to consider it alongside the company’s financial health, market trends, and industry developments.
Our Methodology
To identify the 10 stocks insiders are selling in March we used Insider Monkey’s insider trading stock screener and looked for stocks where at least three insiders sold shares this month. With each stock, we note the number of insiders who recently sold shares and the company’s market capitalization.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of a Waste Management Transfer Station, highlighting the scale of its operations.
Waste Management, Inc. (NYSE:WM)
Number of Insiders Selling: 10
Market Capitalization: $90.42 billion
The seventh stock, among 10 insiders are dropping in March is an industrial company providing waste management solutions, Waste Management, Inc. (NYSE:WM). Based in Houston, Texas, the company provides collection services, including picking up and transporting waste and recyclable materials to a transfer station. Its network counts 337 transfer stations, 254 active landfill disposal sites, 97 recycling plants and six independent power production plants. Waste Management (NYSE:WM) serves nearly 21 million customers across the U.S., Canada, Mexico, and Puerto Rico.
For the full year 2024, the company reported revenue of $22.06 billion, slightly down from $22.43 billion in 2023. Jim Fish, Waste Management’s President and CEO, stated that the company anticipates “a second consecutive year of double-digit growth in adjusted operating EBITDA in 2025.” Additionally, Waste Management’s Board of Directors recently announced a quarterly cash dividend of $0.825 per share.
The stock is also among the 10 best stocks to buy according to Bill Gates.
In March, 10 insiders, including the company’s COO, sold a total of $6.87 million worth of Waste Management’s shares at a price of $230.74 per share. Year-to-date, the stock gained 11.43% and is now trading at $224.86 per share. Over the past 12 months, Waste Management returned 6.23% to its investors.
StockAnalysis reports that 20 analysts have given a “Buy” rating on Waste Management (NYSE:WM) stock with a price target of $235.44.
Overall, WM ranks 7th on our list of stocks Insiders are selling in March. While we acknowledge the potential of WM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
