Stericycle Inc. (SRCL) Stock Rating Upgraded by Zacks Investment Research
Stericycle Inc. (NASDAQ:SRCL) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Stericycle has a negative earnings surprise history, having missed estimates twice in the trailing four quarters. The recent spate of acquisitions is leading to higher overheads and integration-related expenses, which are weighing on margins. The company faces aggressive price wars that erode its profitability. Evolving environmental rules and regulations remain another headwind. Stericycle also lowered its earnings guidance for 2016 due to macroeconomic challenges. However, Stericycle’s network is the largest in the industry and provides it with routing efficiencies for its vehicles from the customer sites to the collection and processing facilities. The acquisition pool of the company also remains robust in multiple geographies and lines of business. International growth rates are expected to accelerate due to increasing customer adoption of multiple services and expansion into new lines of business.”
SRCL has been the subject of a number of other reports. Macquarie assumed coverage on shares of Stericycle in a research note on Thursday, August 25th. They issued a “neutral” rating and a $96.00 price target for the company. Jefferies Group restated a “buy” rating and set a $112.50 target price (down from $125.00) on shares of Stericycle in a research report on Wednesday, September 7th. Imperial Capital lowered shares of Stericycle from an “in-line” rating to an “underperform” rating and cut their target price for the company from $100.00 to $93.50 in a research report on Friday, July 29th. Wellington Shields lowered shares of Stericycle from an “accumulate” rating to a “hold” rating in a research report on Friday, July 29th. Finally, Wedbush cut their target price on shares of Stericycle from $95.00 to $85.00 and set a “neutral” rating for the company in a research report on Thursday, September 22nd. Three research analysts have rated the stock with a sell rating, eleven have given a hold rating and three have issued a buy rating to the company. The company has an average rating of “Hold” and a consensus price target of $104.95.
Stericycle (NASDAQ:SRCL) opened at 80.50 on Wednesday. Stericycle has a one year low of $76.76 and a one year high of $151.57. The company has a market cap of $6.85 billion, a price-to-earnings ratio of 28.34 and a beta of 0.27. The stock has a 50 day moving average of $83.04 and a 200-day moving average of $101.04.
Stericycle (NASDAQ:SRCL) last announced its quarterly earnings results on Thursday, July 28th. The company reported $1.18 EPS for the quarter, hitting analysts’ consensus estimates of $1.18. Stericycle had a net margin of 7.22% and a return on equity of 14.84%. The firm earned $891.60 million during the quarter, compared to analyst estimates of $910.29 million. During the same period in the previous year, the business posted $1.14 earnings per share. The business’s revenue for the quarter was up 24.6% on a year-over-year basis. On average, equities analysts predict that Stericycle will post $4.67 EPS for the current fiscal year.
In other news, Director Mark C. Miller sold 34,835 shares of the business’s stock in a transaction on Friday, July 8th. The shares were sold at an average price of $104.52, for a total value of $3,640,954.20. Following the transaction, the director now owns 244,284 shares of the company’s stock, valued at $25,532,563.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Rodney F. Dammeyer sold 10,188 shares of the business’s stock in a transaction on Wednesday, August 17th. The stock was sold at an average price of $85.50, for a total transaction of $871,074.00. Following the completion of the transaction, the director now directly owns 10,188 shares in the company, valued at approximately $871,074. The disclosure for this sale can be found here. 3.30% of the stock is currently owned by insiders.
Large investors have recently made changes to their positions in the company. Jana Partners LLC acquired a new stake in shares of Stericycle during the first quarter valued at $305,997,000. First Republic Investment Management Inc. boosted its stake in shares of Stericycle by 23.9% in the first quarter. First Republic Investment Management Inc. now owns 296,838 shares of the company’s stock valued at $37,457,000 after buying an additional 57,220 shares in the last quarter. Oakbrook Investments LLC acquired a new stake in shares of Stericycle during the second quarter valued at $13,871,000. Douglas Lane & Associates LLC boosted its stake in shares of Stericycle by 6.6% in the second quarter. Douglas Lane & Associates LLC now owns 346,276 shares of the company’s stock valued at $36,054,000 after buying an additional 21,370 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of Stericycle by 2.7% in the first quarter. Geode Capital Management LLC now owns 729,638 shares of the company’s stock valued at $91,897,000 after buying an additional 19,379 shares in the last quarter. Institutional investors own 92.80% of the company’s stock.
Stericycle Company Profile
Stericycle, Inc is a business-to-business services provider with a focus on regulated and compliance solutions for healthcare, retail and commercial businesses. The Company’s solutions include the collection and processing of specialized waste for disposal, the collection of personal and confidential information for secure destruction, and a range of training, consulting, recall/return, communication and compliance services.
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