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.
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:
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:
|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 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.