Zacks Investment Research upgraded shares of Steris (NYSE:STE) from a sell rating to a hold rating in a report published on Tuesday morning.
According to Zacks, “Over the past six months, STERIS has been outperforming its industry. However, a tough competitive landscape and currency headwinds continue to pose threats to STERIS. Moreover, customer consolidation is a concern for the company. On a brighter note, we are encouraged by the favorable underlying market trends along with STERIS' new product and service offerings. The company's strong organic growth across Healthcare Products, Healthcare Specialty Services, Applied Sterilization Technologies and Life Sciences segments also buoys optimism. Further, growth in free cash flow reserve is indicative of the company’s cash balance strength. The company has also made certain divestments and organizational changes, which are expected to better suit its operations.”
Several other brokerages have also commented on STE. JMP Securities raised their price target on Steris from $113.00 to $125.00 and gave the company a market outperform rating in a research note on Thursday, August 9th. Stephens restated a buy rating and set a $125.00 price target on shares of Steris in a research note on Thursday, August 9th. Finally, KeyCorp raised their price target on Steris from $115.00 to $120.00 and gave the company an overweight rating in a research note on Thursday, August 9th. Two research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Steris has an average rating of Buy and a consensus price target of $100.86.
Shares of Steris stock opened at $106.10 on Tuesday. The firm has a market cap of $9.67 billion, a PE ratio of 25.57 and a beta of 1.06. The company has a debt-to-equity ratio of 0.43, a quick ratio of 2.02 and a current ratio of 2.65. Steris has a 12 month low of $82.88 and a 12 month high of $117.48.
Steris (NYSE:STE) last announced its quarterly earnings results on Wednesday, August 8th. The medical equipment provider reported $1.00 EPS for the quarter, beating the consensus estimate of $0.99 by $0.01. The firm had revenue of $638.76 million for the quarter, compared to analyst estimates of $638.63 million. Steris had a return on equity of 11.80% and a net margin of 11.42%. The business’s revenue for the quarter was up 5.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.85 earnings per share. Sell-side analysts predict that Steris will post 4.71 earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 27th. Shareholders of record on Wednesday, August 29th were paid a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 1.28%. The ex-dividend date was Tuesday, August 28th. This is a positive change from Steris’s previous quarterly dividend of $0.31. Steris’s payout ratio is 32.77%.
In other Steris news, VP Karen L. Burton sold 1,300 shares of Steris stock in a transaction dated Tuesday, August 14th. The stock was sold at an average price of $114.39, for a total value of $148,707.00. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 2.38% of the stock is owned by insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of the business. Crossmark Global Holdings Inc. grew its stake in Steris by 5.6% in the second quarter. Crossmark Global Holdings Inc. now owns 9,190 shares of the medical equipment provider’s stock valued at $965,000 after purchasing an additional 490 shares during the last quarter. Brookstone Capital Management grew its stake in Steris by 12.1% in the second quarter. Brookstone Capital Management now owns 5,077 shares of the medical equipment provider’s stock valued at $533,000 after purchasing an additional 549 shares during the last quarter. American International Group Inc. grew its stake in Steris by 0.3% in the second quarter. American International Group Inc. now owns 170,289 shares of the medical equipment provider’s stock valued at $17,882,000 after purchasing an additional 572 shares during the last quarter. First Republic Investment Management Inc. grew its stake in Steris by 1.4% in the second quarter. First Republic Investment Management Inc. now owns 42,631 shares of the medical equipment provider’s stock valued at $4,477,000 after purchasing an additional 595 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Steris by 12.6% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,351 shares of the medical equipment provider’s stock valued at $562,000 after purchasing an additional 599 shares during the last quarter. Institutional investors own 88.77% of the company’s stock.
STERIS plc provides infection prevention and other procedural products and services worldwide. The company operates in four segments: Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied Sterilization Technologies. The Healthcare Products segment offers cleaning chemistries and sterility assurance products; accessories for gastrointestinal (GI) procedures, washers, sterilizers, and other pieces of capital equipment for the operations of a sterile processing department; and equipment used in the operating room, including surgical tables, lights, equipment management services, and connectivity solutions.
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