GFL Environmental Inc. [NYSE: GFL] price plunged by -4.80 percent to reach at -$1.66. The company report on April 13, 2021 that GFL Environmental Inc. Announces a US$594 million Secondary Offering of Subordinate Voting Shares.
GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) (“GFL” or the “Company”) announced that certain entities affiliated with BC Partners Advisors L.P., Ontario Teachers’ Pension Plan Board, GIC Private Limited and HPS Investment Partners, LLC (collectively, the “Selling Shareholders”), have entered into an agreement with BMO Capital Markets, RBC Capital Markets and Scotiabank (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a bought deal basis an aggregate of 17,500,000 subordinate voting shares (the “Shares”) held by the Selling Shareholders at an offering price of US$33.95 per Share (the “Offering Price”) for total gross proceeds to the Selling Shareholders of US$594,125,000 (the “Offering”). GFL will not receive any proceeds from the Offering.
The Underwriters have also been granted an over-allotment option (the “Over-Allotment Option”) to purchase up to an additional 2,625,000 Shares from the Selling Shareholders at the Offering Price for additional gross proceeds of US$89,118,750 if the Over-Allotment Option is exercised in full. The Over-Allotment Option can be exercised at any time, in whole or in part, for a period of 30 days from the closing date of the Offering, which is expected to occur on or about April 23, 2021 and is subject to certain customary closing conditions.
A sum of 2739359 shares traded at recent session while its average daily volume was at 850.28K shares. GFL Environmental Inc. shares reached a high of $34.45 and dropped to a low of $32.86 until finishing in the latest session at $32.89.
Guru’s Opinion on GFL Environmental Inc. [GFL]:
Goldman have made an estimate for GFL Environmental Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 07, 2021. While these analysts kept the previous recommendation, JP Morgan raised their target price from $27 to $31. The new note on the price target was released on February 26, 2021, representing the official price target for GFL Environmental Inc. stock. Previously, the target price had yet another raise to $31, while Barclays analysts kept a Equal Weight rating on GFL stock. On August 19, 2020, analysts increased their price target for GFL shares from 21 to 24.
The Average True Range (ATR) for GFL Environmental Inc. is set at 1.18, with the Price to Sales ratio for GFL stock in the period of the last 12 months amounting to 2.46. The Price to Book ratio for the last quarter was 40.26.
GFL Stock Performance Analysis:
GFL Environmental Inc. [GFL] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.52. With this latest performance, GFL shares dropped by -0.54% in over the last four-week period, additionally plugging by 46.70% over the last 6 months – not to mention a rise of 118.97% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GFL stock in for the last two-week period is set at 45.39, with the RSI for the last a single of trading hit 39.84, and the three-weeks RSI is set at 48.89 for GFL Environmental Inc. [GFL]. The present Moving Average for the last 50 days of trading for this stock 32.39, while it was recorded at 34.02 for the last single week of trading, and 25.62 for the last 200 days.
Insight into GFL Environmental Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and GFL Environmental Inc. [GFL] shares currently have an operating margin of -5.25 and a Gross Margin at +3.92. GFL Environmental Inc.’s Net Margin is presently recorded at -23.71.
Return on Total Capital for GFL is now -1.83, given the latest momentum, and Return on Invested Capital for the company is -8.36. Return on Equity for this stock declined to -23.56, with Return on Assets sitting at -6.84. When it comes to the capital structure of this company, GFL Environmental Inc. [GFL] has a Total Debt to Total Equity ratio set at 136.36. Additionally, GFL Total Debt to Total Capital is recorded at 57.69, with Total Debt to Total Assets ending up at 47.07. Long-Term Debt to Equity for the company is recorded at 134.58, with the Long-Term Debt to Total Capital now at 56.94.
Reflecting on the efficiency of the workforce at the company, GFL Environmental Inc. [GFL] managed to generate an average of -$64,291 per employee. Receivables Turnover for the company is 5.31 with a Total Asset Turnover recorded at a value of 0.29.
GFL Environmental Inc. [GFL] Insider Position Details
There are presently around $6,331 million, or 72.95% of GFL stock, in the hands of institutional investors. The top three institutional holders of GFL stocks are: BC PARTNERS ADVISORS L.P. with ownership of 62,609,167, which is approximately 0% of the company’s market cap and around 3.56% of the total institutional ownership; ONTARIO TEACHERS PENSION PLAN BOARD, holding 50,824,825 shares of the stock with an approximate value of $1.67 billion in GFL stocks shares; and WELLINGTON MANAGEMENT GROUP LLP, currently with $325.14 million in GFL stock with ownership of nearly -8.471% of the company’s market capitalization.
Positions in GFL Environmental Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 76 institutional holders increased their position in GFL Environmental Inc. [NYSE:GFL] by around 19,441,066 shares. Additionally, 39 investors decreased positions by around 16,169,911 shares, while 6 investors held positions by with 156,893,755 shares. The mentioned changes placed institutional holdings at 192,504,732 shares, according to the latest SEC report filing. GFL stock had 40 new institutional investments in for a total of 9,475,629 shares, while 14 institutional investors sold positions of 5,808,907 shares during the same period.