Squarepoint Ops LLC significantly reduced its stake in GFL Environmental Inc. (NYSE:GFL) by an impressive 95% during the second quarter of 2023. According to reports from Holdings Channel, the firm divested 311,595 shares, leaving it with a total of 16,414 shares valued at approximately $828,000 at the end of the quarter.
This divestment is part of a broader trend with several institutional investors adjusting their positions in GFL Environmental. Notably, Norges Bank invested $171.9 million in a new position during the same quarter. Additionally, CIBC Asset Management Inc. increased its holdings by 30.1%, acquiring an additional 927,798 shares, bringing its total to 4,015,118 shares worth about $202.6 million. Other significant players include Ghisallo Capital Management LLC and the Canada Pension Plan Investment Board, which boosted its position by 101.7% in the first quarter, now owning 1,089,215 shares valued at $52.6 million.
Analysts Adjust Price Targets
GFL Environmental has been the subject of multiple analyst evaluations recently. Raymond James Financial established a target price of $57.00 and rated the stock as “outperform” on October 6, 2023. Meanwhile, UBS Group increased its target from $58.00 to $60.00 and gave it a “buy” rating. Weiss Ratings reaffirmed a “buy (B-)” rating, while the Goldman Sachs Group initiated coverage with a “neutral” rating and a price objective of $50.00.
Currently, two analysts have given GFL a “Strong Buy” rating, twelve have rated it as a “Buy,” and two have assigned a “Hold” rating. According to data from MarketBeat, the stock has an average rating of “Buy” with a consensus price target of $57.08.
Stock Performance and Financial Overview
On October 31, 2023, shares of GFL Environmental opened at $43.08. The company’s 50-day moving average stands at $44.60, while the 200-day moving average is $47.13. GFL Environmental has experienced a 52-week low of $41.29 and a high of $52.00. The firm boasts a market capitalization of $15.47 billion, a P/E ratio of 6.75, and a beta of 0.89.
In its latest earnings report, GFL Environmental announced earnings per share (EPS) of $0.17 for the quarter ended November 5, 2023, falling short of the consensus estimate of $0.19 by $0.02. The company reported revenue of $1.22 billion, significantly below analyst expectations of $1.69 billion, though this represents a 9.0% increase from the previous year. Analysts project GFL will post EPS of $0.58 for the current fiscal year.
In addition to its financial disclosures, GFL Environmental announced a quarterly dividend of $0.0154 per share, which was paid on October 31, 2023. This dividend reflects an annualized payout of $0.06 with a yield of 0.1%.
GFL Environmental Inc. has established itself as a prominent provider of diversified environmental services across North America, focusing on solid waste management, liquid waste management, soil remediation, and infrastructure services. Founded in 2007 by entrepreneur Patrick Dovigi, the company has pursued aggressive growth through strategic acquisitions and organic expansion efforts.
