GFL Environmental: 15-Minute Chart Shows RSI Overbought, KDJ Death Cross

GFL Environmental's 15-minute chart indicates an overbought condition according to the Relative Strength Index (RSI) and a death cross on the KDJ indicator, which occurred on August 29, 2025 at 15:45. This suggests that the stock price has risen excessively and is no longer supported by fundamental factors, with momentum shifting towards a downward trajectory and potentially leading to further declines.

GFL Environmental Inc. (GFL) has recently agreed to a significant recapitalization deal with Energy Capital Partners for its construction subsidiary, Green Infrastructure Partners (GIP), at an enterprise value of $4.25 billion. Under this agreement, GFL will receive $200 million and own approximately 30.1% of GIP's interest [1]. This deal follows GFL's recent sale of its environmental services division to Apollo and BC Partners for $5.6 billion, which was announced earlier this year.

The recapitalization deal is a strategic move for GFL, allowing the company to monetize its stake in GIP and providing immediate liquidity. This transaction is expected to strengthen GFL's financial position and enable the company to focus on its core environmental services and recycling businesses. Over the past five years, GFL has outperformed the market by an annualized basis of 10.11% with an average annual return of 23.0% [1]. This consistent performance has attracted significant investment from various institutional investors, including Copeland Capital Management LLC, Nordea Investment Management AB, and Portolan Capital Management LLC [1].

Despite the positive long-term performance, GFL's stock has faced recent market challenges. As of July 2, 2025, GFL's 15-minute chart indicates an overbought condition according to the Relative Strength Index (RSI) and a death cross on the KDJ indicator, which occurred on August 29, 2025, at 15:45. This suggests that the stock price has risen excessively and is no longer supported by fundamental factors, with momentum shifting towards a downward trajectory and potentially leading to further declines [2].

GFL Environmental shareholders are up 18% for the year (even including dividends), but that return falls short of the market. Over the long term, however, the company has demonstrated a healthy share price gain of 23% per year over five years [2]. The company's revenue has grown at an impressive 14% per year over the last five years, which may indicate a solid business development trajectory [2].

The recapitalization of GIP is a strategic move that aligns with GFL's focus on its core businesses. As the company continues to expand its operations and service offerings, investors should closely monitor GFL's progress and future developments. However, the recent market conditions suggest that investors should be cautious and consider the potential risks associated with the stock's current overbought status.

References:
[1] https://www.ainvest.com/news/gfl-environmental-recapitalizes-gip-boosts-stake-30-1-2508/
[2] https://finance.yahoo.com/news/even-though-gfl-environmental-tse-120908529.html