Diamond Hill Capital Increases Stake in Waste Management, Inc.

 Diamond Hill Capital Increases Stake in Waste Management, Inc. 

Diamond Hill Capital Management Inc. significantly expanded its position in Waste Management, Inc. (NYSE: WM) during the third quarter, reinforcing institutional confidence in the North American waste services leader. According to the firm’s latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC), Diamond Hill increased its holdings by 11.6%, acquiring an additional 195,092 shares during the period.

Following the purchase, Diamond Hill Capital now owns 1,881,975 shares of Waste Management stock, valued at approximately $415.6 million at the time of filing. The investment represents 2.0% of the firm’s total portfolio, positioning Waste Management as its 11th-largest holding. Overall, Diamond Hill controls roughly 0.47% of Waste Management’s outstanding shares, underscoring a sizable long-term commitment.

 

Institutional Activity Remains Strong

Waste Management continues to attract broad interest from institutional investors, with ownership trends reflecting steady accumulation rather than large-scale exits. Recent filings show that over 80% of WM’s outstanding shares (approximately 80.4%) are held by institutional investors and hedge funds, a figure well above the S&P 500 average.

Notable recent movements include:

Investor	Action	Quarter	Estimated Value
Cornerstone Planning Group LLC	Increased stake by 101.5%	Q3	~$29,000
Loomis Sayles & Co. L.P.	New position	Q2	~$40,000
Steigerwald Gordon & Koch Inc.	New position	Q3	~$41,000
Wealth Watch Advisors Inc.	New position	Q2	~$43,000
Halbert Hargrove Global Advisors LLC	Increased stake by 47.0%	Q3	~$54,000

While many of these positions are relatively small, their cumulative activity highlights sustained institutional interest across both large and boutique investment firms.

Insider Transactions: Limited and Non-Disruptive

On the insider front, Waste Management executives have executed modest stock sales, largely consistent with routine portfolio management rather than signaling operational concerns.

• Senior Vice President Tara J. Hemmer sold 690 shares at an average price of $219.71, totaling approximately $151,600. Post-sale, she retains 83,736 shares, valued at roughly $18.4 million, representing a reduction of less than 1% of her holdings.

• Executive Vice President Charles C. Boettcher sold 689 shares at an average price of $219.32, for proceeds of about $151,111, reducing his stake by approximately 1.21%.

Over the past 90 days, insiders have sold 6,806 shares worth about $1.49 million in total. Importantly, corporate insiders still own roughly 0.18% of the company, a level typical for mature, large-cap infrastructure firms.

WM Stock Performance and Valuation Snapshot

Waste Management shares edged 0.2% higher, opening at $226.99 in recent trading. The stock has demonstrated relative stability compared to broader market volatility, supported by its defensive business model.

Key valuation and financial metrics include:

Metric	Value
Market Capitalization	~$91.45 billion
P/E Ratio	33.88
PEG Ratio	2.40
Beta	0.58
50-Day Moving Average	$220.19
200-Day Moving Average	$219.20
52-Week Range	$194.11 – $242.58
Debt-to-Equity Ratio	2.22

The company’s low beta highlights its reputation as a defensive, recession-resilient stock, often favored by income-oriented and long-term investors.

Earnings Performance and Revenue Growth

Waste Management reported its most recent quarterly earnings on January 28, posting earnings per share (EPS) of $1.93, narrowly missing consensus estimates of $1.95. Despite the slight miss, operational performance remained solid.

• Quarterly revenue: $6.31 billion

• Year-over-year revenue growth: 7.1%

• Return on equity (ROE): 32.45%

• Net profit margin: 10.74%

For comparison, Waste Management reported $1.70 EPS during the same quarter last year, indicating continued earnings growth despite inflationary pressures on labor, fuel, and equipment costs. Analysts currently project full-year EPS of approximately 7.7, reflecting confidence in pricing power and operational efficiency.

Dividend Strength and Shareholder Returns

Waste Management also remains a reliable dividend payer. The company recently distributed a quarterly dividend of $0.825 per share, translating to an annualized dividend of $3.30 and a yield of approximately 1.5% at current prices.

With a payout ratio of 49.25%, the dividend appears well-covered by earnings, leaving room for reinvestment in infrastructure, recycling technology, and renewable energy initiatives tied to landfill gas capture.

Analyst Outlook and Price Targets

Wall Street sentiment toward Waste Management remains broadly positive. Among covering analysts:

• 15 rate the stock as “Buy”

• 9 assign a “Hold” rating

• 1 lists WM as a “Strong Buy”

Recent analyst actions include:

• TD Cowen raising its price target to $270 (Buy)

• JPMorgan increasing its target to $265 (Overweight)

• Oppenheimer lifting its target to $264 (Outperform)

According to MarketBeat consensus data, Waste Management carries an overall “Moderate Buy” rating, with an average price target of $253.55, implying potential upside from current levels.

Company Overview: Waste Management, Inc.

Founded in 1968 and headquartered in Houston, Texas, Waste Management, Inc. is the largest integrated waste and environmental services provider in North America. The company delivers end-to-end solutions across the waste lifecycle, serving residential, commercial, industrial, and municipal clients.

Core operations include:

    Curbside and commercial waste collection

    Roll-off and temporary container services

    Recycling and materials recovery facilities (MRFs)

    Engineered landfill operations

    Renewable energy generation from landfill gas
 

With one of the most extensive waste infrastructure networks on the continent, Waste Management plays a critical role in environmental compliance, public health, and circular-economy initiatives.