The founder of Microsoft, renowned philanthropist Bill Gates, funds his charitable efforts, in large part, through investing in the stock market.
Gates’ portfolio is actually quite concentrated — with only 4 stock holdings accounting for 79% of the portfolio’s value. For the Gates Foundation, stability is a priority, so blue-chip stocks with stable dividends are a mainstay.
One of the long-term holdings in this portfolio is Waste Management (NYSE: WM). At present, it is the 3rd largest holding, and accounts for 16% of the portfolio.
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In early February, two company insiders dumped roughly $2.2 million worth of WM stock. A week before that, the company held its Q4 and FY 2024 earnings call on January 29. The quarter saw earnings per share (EPS) come in below consensus estimates, while revenues came in slightly above expectations.
Despite what seemed like a bearish turn at the time, Bill Gates’ 3rd largest holding has performed admirably since. At press time, Waste Management stock was trading at $229.03, having marked a 13.50% surge since the start of the year.
Now, Finbold’s insider trading radar has picked up two additional insider sales. Let’s take a closer look at the transactions, and whether or not they constitute a bearish signal.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Despite insider selling, this Bill Gates stock seems like a buy
On March 7, two company insiders — John Morris, Chief Operation Officer (COO), and John Carroll, Chief Accounting Officer (CAO), sold Waste Management stock.
To be more precise, Morris sold 19,153 WM shares at an average price of $224.71, netting him $4,303,870. With the sale concluded, the COO continues to hold 85,257 shares directly, as well as 2,405.7884 within a 401k plan.
Carroll sold 1,251 units of Waste Management stock for an average price of $225.92 — amounting to roughly $282,625. The CAO continues to hold 8,419.9838 shares directly.
A closer look at the filings also reveals an interesting discrepancy. The trade made by John Morris was prescheduled, as it was executed according to a 10b5-1 plan. However, the sale that John Carroll made was not scheduled in advance.
The most likely explanation is simultaneously the simplest one. For one of these insiders, this was a simple way to offload shares — for the other, it was an opportune moment to take profits.
These transactions, particularly once we factor in how small they are relative to remaining holdings, cannot constitute either a bullish or bearish signal with any degree of reliability.
Readers should also note that Waste Management might be a wise addition to a stock portfolio in the era of tariffs and trade wars. Local demand drives the company’s operations, and the industry has a high barrier to entry. To boot, most of the company’s revenue comes from stable, long-term contracts.
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