Douglas R. Casella, Vice Chairman of the Board of Directors at Casella Waste (NASDAQ:CWST) Systems Inc. (NASDAQ:CWST), recently sold 20,000 shares of the company's Class A Common Stock. The shares were sold at a weighted average price of $112.26, for a total transaction value of approximately $2.25 million. Following this sale, Casella retains direct ownership of 115,435 shares of Class A Common Stock.
In addition to his direct holdings, Casella also maintains indirect ownership of Class B Common Stock through various trusts and family arrangements. These include 169,000 shares held directly, 131,000 shares held by a Spousal Lifetime Access Trust (SLAT) for the benefit of his spouse, 57,100 shares held by his spouse, and 137,000 shares held by another SLAT for his own benefit.
This transaction highlights ongoing activity in the executive's portfolio, providing investors with insights into insider trading trends at Casella Waste Systems.
In other recent news, Casella Waste Systems reported a year-over-year revenue increase of 16.7% to $411.6 million in its third-quarter earnings for 2024. This growth has been attributed to both acquisitions and organic growth, with adjusted EBITDA also seeing an increase of 14.9% to reach $102.9 million. Despite these gains, the company faced challenges with lower landfill volumes and increased expenses, resulting in a decrease in adjusted net income to $15.9 million.
Additionally, the company completed the acquisition of Royal, which is expected to contribute to future growth. Meanwhile, Casella raised over $500 million in financing for future M&A activities and remains optimistic about 2025, with anticipated growth in EBITDA and free cash flow.
However, the company did face challenges in the quarter, including unusual events impacting EBITDA and lower landfill volumes. Despite these issues, the company expects 12% to 15% growth in adjusted EBITDA for 2025, as well as 10% to 15% growth in free cash flow, assuming no further acquisitions. These are recent developments that investors should note.
InvestingPro Insights
The recent stock sale by Douglas R. Casella comes at a time when Casella Waste Systems Inc. (NASDAQ:CWST) is experiencing significant growth and market attention. According to InvestingPro data, CWST has seen impressive revenue growth of 26.53% over the last twelve months as of Q3 2024, with quarterly revenue growth of 16.7% in Q3 2024. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
The company's strong performance is reflected in its stock price, which is trading near its 52-week high, with a one-year price total return of 40.93%. This robust performance has led to a high valuation, as evidenced by the company's P/E ratio of 248.96 (adjusted for the last twelve months as of Q3 2024). An InvestingPro Tip notes that CWST is trading at high earnings, EBIT, EBITDA, and revenue valuation multiples.
Despite the high valuation, CWST's financial health appears solid. The company operates with a moderate level of debt, and its liquid assets exceed short-term obligations, according to InvestingPro Tips. This financial stability may provide some reassurance to investors considering the stock's elevated multiples.
For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips for CWST, providing a deeper understanding of the company's financial position and market outlook.
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