Casella Waste Stock Down Nearly 20%, but One Fund Just Bought Up $9 Million in Shares

By Jonathan Ponciano – Mar 5, 2026 at 12:17PM ESTKey Points4D Advisors added 95,000 shares of Casella Waste Systems in the fourth quarter.The quarter-end position value increased by $9.30 million as a result.Casella Waste Systems stake now accounts for 5.1% of AUM.4D Advisors reported a new position in Casella Waste Systems (CWST +3.00%) in a February 17, 2026, SEC filing, acquiring 95,000 shares worth $9.30 million.What happenedAccording to a SEC filing dated February 17, 2026, 4D Advisors initiated a new position in Casella Waste Systems, acquiring 95,000 shares. The position’s quarter-end value stood at $9.30 million.What else to knowThis was a new position for the fund, now representing 5.1% of 13F reportable assets under management.Top holdings after the filing:NYSE: TPB: $12.47 million (6.8% of AUM)NASDAQ: CWST: $9.30 million (5.1% of AUM)NYSE: FSS: $7.60 million (4.2% of AUM)NASDAQ: AXON: $7.10 million (3.9% of AUM)NYSE: FICO: $6.76 million (3.7% of AUM)As of Wednesday, Casella Waste Systems shares were priced at $93, down 18% over the past year and well underperforming the S&P 500’s roughly 15% gain in the same period.Company overviewMetricValuePrice (as of Wednesday)$93Market capitalization$6 billionRevenue (TTM)$1.8 billionNet income (TTM)$7.9 millionCompany snapshotCasella Waste Systems offers solid waste collection, disposal, transfer, recycling, and organics services, with additional revenue from marketing recyclable materials and commodity brokerage operations.The firm operates a vertically integrated model, owning and managing collection operations, transfer stations, recycling facilities, and landfills to capture value across the waste management chain.It serves residential, commercial, municipal, institutional, and industrial customers across the northeastern United States.Casella Waste Systems is a leading integrated waste management company in the northeastern U.S., leveraging scale and operational control across the waste value chain. The company’s strategy focuses on maximizing resource recovery and providing comprehensive services to a diverse customer base. Its vertically integrated platform and regional footprint position it to benefit from stable demand and regulatory-driven barriers to entry in the waste sector.What this transaction means for investorsWaste isn’t the most glorious industry, but when a steady compounder underperforms, disciplined capital often steps in when it sees opportunity. Casella just delivered $1.8 billion in revenue for 2025, up 18%, with adjusted EBITDA climbing 17% to $422.8 million. Adjusted free cash flow, meanwhile, rose to $179.9 million, up 13.6%, even as reported net income compressed under higher depreciation tied to acquisitions.The market focused on softer GAAP earnings and leverage from continued deal activity. Yet pricing remained solid, with nearly 5% solid waste price growth, and management guided to $455 million to $465 million in adjusted EBITDA for 2026. That implies another year of mid-teens cash flow expansion in a sector with high regulatory barriers and limited competition.Within a portfolio that includes tobacco, data analytics, and public safety technology, a 5% allocation to integrated waste adds durability. This is not a hyper-growth story. It is about route density, landfill airspace, and disciplined tuck-in acquisitions.About the AuthorJonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.CMFjonponcStocks MentionedCasella Waste SystemsNASDAQ: CWST$96.36(+3.00%)+$2.81*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.