4. Clean Harbors, Inc. (NYSE:CLH)
Number of Hedge Fund Holders: 27
Clean Harbors, Inc. (NYSE:CLH) was incorporated in 1980 and is headquartered in Norwell, Massachusetts. The company provides environmental and industrial services in the United States and internationally, operating through two segments – The Environmental Services and The Safety-Kleen Sustainability Solutions. Clean Harbors, Inc. (NYSE:CLH) is involved in the collection, transportation, treatment, and disposal of both hazardous and non-hazardous waste. It is one of the best waste management stocks to invest in.
On March 5, Raymond James analyst Patrick Tyler Brown raised the firm’s price target on Clean Harbors, Inc. (NYSE:CLH) to $155 from $150 and kept a Strong Buy rating on the shares. The analyst noted that the company had another strong quarter and provided positive guidance for fiscal 2023. The firm believes that improving industry dynamics may lead to better pricing and margins for Clean Harbors, Inc. (NYSE:CLH).
According to Insider Monkey’s fourth quarter database, 27 hedge funds were bullish on Clean Harbors, Inc. (NYSE:CLH), compared to 30 funds in the prior quarter. Ian Simm’s Impax Asset Management is the largest stakeholder of the company, with 1 million shares worth $122.3 million.
Meridian Funds made the following comment about Clean Harbors, Inc. (NYSE:CLH) in its Q3 2022 investor letter:
“Clean Harbors, Inc. (NYSE:CLH) is a leading hazardous waste treatment, storage, and disposal management company in North America and one of our longer-term holdings. Particularly impressive are its hazardous waste incinerators, which are nearly impossible to replicate. We also like its oil re-refinery business which is gaining recognition as a sustainable source of motor oil. Through cost controls and price increases, the company was successful in managing the inflationary environment during the period. Utilization of its incinerator network reached 90% during its most recently reported quarter and pricing increased 18% from a year ago. High and increasing base oil prices provided an additional boost to its re-refinery business, widening the spread between the price Clean Harbors charges for its re-refined oil and the price it pays for used oil. A resurgence in U.S. manufacturing activity and the accretive acquisition of HydroChemPSC also contributed to investors’ enthusiasm for the stock. Although our long-term outlook for Clean Harbors remains upbeat, we trimmed our position in the stock due to the company’s high debt balance as a result of the acquisition. We also believe the economic slowdown may eventually impact Clean Harbors, which operates in a late-cycle industry and therefore tends to have a delayed response to economic developments.”
