There’s an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on August 3, Waste Management, Inc. ‘s Sr. VP of Customer Experience, Grace Cowan, invested $ 4,264.40 into 140 shares of WM, for a cost per share of $ 30.46. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

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In trading on Monday, bargain hunters could buy shares of Waste Management, Inc. (NYSE: WM) and achieve a cost basis even cheaper than Cowan, with shares changing hands as low as $ 30.33 per share. It should be noted that Cowan has collected $ 0.34/share in dividends since the time of their purchase, so they are currently up 0.7% on their purchase from a total return basis. Waste Management, Inc. shares are currently trading up about 1.7% on the day. The chart below shows the one year performance of WM shares, versus its 200 day moving average:

Waste Management, Inc.  Chart

Looking at the chart above, WM’s low point in its 52 week range is $ 27.75 per share, with $ 39.69 as the 52 week high point — that compares with a last trade of $ 30.48. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
08/03/2011 Grace Cowan Sr. VP Customer Experience 140 $ 30.46 $ 4,264.40

The current annualized dividend paid by Waste Management, Inc. is $ 1.36/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/28/2011. Below is a long-term dividend history chart for WM, which can be of good help in judging whether the most recent dividend with approx. 4.5% annualized yield is likely to continue.

WM+Dividend+History+Chart

According to the ETF Finder at ETF Channel, WM makes up 9.79% of the Environmental Services ETF (AMEX: EVX) which is trading up by about 2% on the day Monday.

See what other ETFs contain WM »
See what other stocks are held by EVX »

WM operates in the Waste Management sector, among companies like Stericycle Inc. (NASD: SRCL) which is up about 1.7% today, and Republic Services, Inc. (NYSE: RSG) trading higher by about 3.2%. Below is a three month price history chart comparing the stock performance of WM, versus SRCL and RSG.

WM,SRCL,RSG Relative Performance Chart


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Yahoo! Finance: Waste Management Industry News

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