Insider Trading Report: Republic Services Inc (RSG)

Cascade Investments, a major owner at Republic Services Inc (RSG), recently bought 10,055 more shares. The buy came to just under $1 million, and increased the fund’s holdings by 0.01 percent. Cascade Investments is the fund managing the stock market investments of Bill Gates.

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  • This is the first insider buy since late 2018. Insiders have mostly been sellers since then, particularly C-suite executives. Among company insiders, less than 0.2 percent of shares are owned.

    Shares of the waste management company have lagged the overall S&P 500 in the past year, as revenues have been flat and earnings have slid 20 percent. However, shares slid off a bear market in shares starting in March, and have now started moving higher.

    Action to take: As a utility investment, traders need to look carefully at valuation and dividend yield. Shares currently yield 1.7 percent, a slight discount to their historical average of 1.95 percent. Shares also trade at about 26 times forward earnings, also a bit on the high side.

    Traders may want to jump into the current uptrend, but look to take profits quickly as shares are already nearing overbought territory. The July $105 calls, with a bid/ask spread near $2.75, can likely deliver mid double-digit profits in the next few weeks—but traders should look to take quick profits.

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