Waste Connections Shares Drop 1.06% Amid $230M Volume Surge as Institutional Bets Diverge and Analysts Back 'Buy' Consensus

On September 2, Waste Connections (WCN) closed down 1.06% amid a trading volume of $230 million, a 82.3% surge from the prior day. Institutional investors showed mixed activity, with Royal Bank of Canada trimming its stake by 1.3% to 10.6 million shares, valued at $2.07 billion, representing 4.11% of the company’s stock. Meanwhile, smaller firms like Ramirez Asset Management and Larson Financial Group significantly increased holdings, with the latter boosting its position by 994.4% to 197 shares.

Analyst sentiment remained cautiously optimistic. Oppenheimer raised its price target to $218 with an "outperform" rating, while Atb Cap Markets upgraded to "strong-buy." Citigroup cut its target to $204 but maintained a "neutral" stance. The stock holds a consensus "Buy" rating with an average price target of $215. Institutional ownership remains robust at 86.09%, reflecting ongoing confidence in the waste management sector.

Recent earnings results highlighted resilience, with Q2 EPS of $1.29 exceeding estimates and revenue rising 7.1% year-over-year to $2.41 billion. A quarterly dividend of $0.315, yielding 0.7%, was also announced. Despite mixed institutional flows, the company’s strong market position and analyst backing suggest continued focus on long-term growth metrics.

Backtest data indicates WCN has historically gained 1.5% on average in the three days following similar institutional selling activity, though short-term volatility remains a factor given the sector’s sensitivity to regulatory and economic shifts.