We recently published a list of 10 Top Insider Stock Buys And Sells In January. In this article, we are going to take a look at where Waste Management (NYSE:WM) stands against other top insider stock buys and sells in January.
Ever heard of the “January effect?” In case you haven’t, a “January effect” is considered a phenomenon in the stock market where stock prices, most commonly of small-cap stocks, rise in the month of January. Analysts have noticed the pattern and provided various explanations for it.
Some attribute the January rise in price to tax-loss harvesting, which usually happens between October and December. The theory suggests that after investors have sold some of their stocks at the end of the year for tax purposes, investors search for new buying opportunities. Others believe that year-end bonuses lead to more investments which subsequently increases stock prices. Overall, whatever the reasons, January seems to be a favorable part of the year for the stock market.
This January, the broader market index went up 2.93%. But, what are some of the stocks that have seen the most insider trading activity this month? To find out, we used Insider Monkey’s insider trading stock screener and looked for stocks with a minimum of five insiders buying or selling in January.
Why should we be interested in insider trading activity? While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
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 275% since May 2014, beating its benchmark by 150 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: 11
Market Cap: $91.95 billion
The third stock among the 10 Top Insider Stock Buys And Sells In January is Waste Management, an industrial company providing waste management solutions. The Houston, Texas-headquartered company offers collection services, such as picking up and transporting waste and recyclable materials to a transfer station. It was founded back in 1968.
The company’s wide network contains 337 transfer stations, 254 active landfill disposal sites, 97 recycling plants, and six independent power production plants. Close to 21 million customers across the U.S., Canada, and Puerto Rico, enjoy Waste Management’s services.
On January 31, as many as 11 insiders sold a total of around $1.33 million worth of shares at an average price of $222.70 per share. The stock is currently trading at $229.08 per share, having gained 13.52% since the beginning of the year.
The average rating for this stock from 20 analysts is “Buy.” The analysts also have a 12-month stock price target of $234.78, which represents an increase of 2.48% from the previous price, according to data from Stock Analysis.
For the full year 2024, the company reported revenue of $22.06 billion, which compares to revenue of $22.43 billion in 2023. Jim Fish, WM’s President and CEO said that the company expects to “ deliver a second consecutive year of double-digit growth in adjusted operating EBITDA in 2025.” Waste Management’s Board of Directors also recently declared a quarterly cash dividend of $0.825 per share.
Over the past 12 months, Waste Management’s stock returned 13.52% to its investors. This is also one of the 10 Best Industrial Stocks to Invest in Now.
Overall, WM ranks 3rd on our list of top insider stock buys and sells in January. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
