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

4D Advisors reported a new position in Casella Waste Systems (NASDAQ:CWST) in a February 17, 2026, SEC filing, acquiring 95,000 shares worth $9.30 million.

What happened

According 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 know

• This 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 overview

Company snapshot

• Casella 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 investors

Waste 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.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool recommends Fair Isaac and Turning Point Brands. The Motley Fool has a disclosure policy.