Recent trading patterns in the stock of Waste Management, Inc. (NYSE:WM) have investors on high alert. Analysts often look at historical trading patterns to predict a stock’s future performance. In the case of WM, the data might be telling investors a thing or two about where the stock is headed. In the most recent quarter, institutional ownership increased by a net of 2.99 million shares, or 0.88%. This is a bullish sign and indicates that institutions are feeling more optimistic about the outlook for WM overall. 409 holders increased their positions, 415 decreased their positions, and 170 holders held their positions.
Among institutions that increased their positions, 81 were new positions. Among holders that decreased their positions, 53 sold out of the stock Waste Management, Inc.. Insider ownership during the latest quarter decreased by a net of 29184 shares, indicating that WM’s key executives are feeling more bearish about the stock than they did three months ago. 8 or 57.14% of the trades during the past quarter were buys, and 6 or 42.86% were sells. This activity represents a continuation of a theme over the past twelve months. Insider ownership during the last year has decreased by a net of 147411 shares. 39.39% of insider trades in the last 12 months were buys, and 60.61% were sells.
Over the past year, the price of Waste Management, Inc. (WM) has increased 22.45% while the S&P 500 has increased 19.15%. During the past 20 days, WM has decreased -1.18% while the broad market has increased 1.82%. WM ‘s 20-day moving average currently sits below its 100-day moving average. This is a bearish signal that suggests the stock price might have farther to fall. WM’s average trading volume during the past 20 days is lower than the average volume over the past 100 days, which could be an indication that investors are feeling less certain than usual about the direction of WM’s future price movements.
Waste Management, Inc. (NYSE:WM) has a 20-day RSI of 49.05%. According to this momentum indicator, a reading between 30 and 70 suggests the stock is not especially cheap or expensive, and not on the brink of a trend reversal. The MACD tells a different story. WM’s 9-day MACD currently sits above the 20-day MACD, indicating that WM’s downside momentum has increased during the last three weeks. This suggests that the trend will likely continue. WM’s average trading volatility during the past few weeks is 40.15% higher than the average volatility over the past 100 days. This means that the stock’s daily price swings have been more extreme in recent times compared to the past.
Analysts expect Waste Management, Inc. (WM) to generate earnings per share of $3.18 in 2017. This works out to an increase of 9.28% compared to last year’s earnings. For comparison’s sake, analysts expect the S&P 500 to grow earnings by an average of 12% in 2017. The average investment rating for WM on a scale of 1 to 5 (1 being a strong sell and 5 being a strong buy) is a 3.89 or a Hold. Three months ago, analysts assigned WM a 4.11 rating, which implies that analysts have become more pessimistic about the outlook for the stock over the next year.