Steris Corp. (STE) Rating Increased to Hold at Zacks Investment Research
Steris Corp. (NYSE:STE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “We believe STERIS is expected to earn massively on the rapid aging of the global population as a major fraction of the population are expected to enter their prime healthcare consumption years. The company also has a strong cash balance position as is evident from the recent increase witnessed in its free cash flow reserve. Additionally lower effective tax rate played a crucial role in enhancing the company’s first quarter bottom line year over year growth. However governments and insurance companies’ consistent efforts to contain the rising cost of healthcare, has been putting a lot of pressure on the healthcare providers like STERIS. Moreover, customer consolidation remains a concerning issue. The company’s lowered revenue guidance for fiscal 2017 is further disappointing.”
Separately, Northcoast Research upgraded shares of Steris Corp. from a “neutral” rating to a “buy” rating in a report on Friday, June 3rd.
Shares of Steris Corp. (NYSE:STE) opened at 73.10 on Thursday. The stock has a 50 day moving average price of $71.34 and a 200 day moving average price of $70.24. Steris Corp. has a 12-month low of $61.38 and a 12-month high of $78.77. The stock has a market capitalization of $6.30 billion, a P/E ratio of 41.99 and a beta of 1.13.
Steris Corp. (NYSE:STE) last posted its quarterly earnings data on Tuesday, August 9th. The company reported $0.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.77 by $0.02. Steris Corp. had a net margin of 5.52% and a return on equity of 10.72%. The company had revenue of $638.40 million for the quarter, compared to the consensus estimate of $639.04 million. During the same quarter in the previous year, the firm posted $0.62 EPS. The business’s revenue was up 45.1% compared to the same quarter last year. On average, equities analysts anticipate that Steris Corp. will post $3.90 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 27th. Investors of record on Tuesday, August 30th were paid a $0.28 dividend. The ex-dividend date was Friday, August 26th. This represents a $1.12 dividend on an annualized basis and a yield of 1.53%. This is a boost from Steris Corp.’s previous quarterly dividend of $0.25. Steris Corp.’s payout ratio is presently 68.71%.
In related news, Director Richard Martin Steeves sold 204,778 shares of the company’s stock in a transaction dated Wednesday, September 7th. The shares were sold at an average price of $71.19, for a total value of $14,578,145.82. Following the sale, the director now owns 165,434 shares of the company’s stock, valued at $11,777,246.46. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, VP Sudhir K. Pahwa sold 1,028 shares of the company’s stock in a transaction dated Friday, August 26th. The shares were sold at an average price of $70.13, for a total transaction of $72,093.64. The disclosure for this sale can be found here. 2.52% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of STE. Virginia Retirement System acquired a new stake in Steris Corp. during the first quarter worth $341,000. TIAA CREF Investment Management LLC boosted its stake in Steris Corp. by 3.0% in the first quarter. TIAA CREF Investment Management LLC now owns 421,403 shares of the company’s stock worth $29,941,000 after buying an additional 12,213 shares during the last quarter. Teachers Advisors Inc. boosted its stake in Steris Corp. by 2.1% in the first quarter. Teachers Advisors Inc. now owns 313,011 shares of the company’s stock worth $22,239,000 after buying an additional 6,330 shares during the last quarter. Stratos Wealth Partners LTD. boosted its stake in Steris Corp. by 300.3% in the first quarter. Stratos Wealth Partners LTD. now owns 12,462 shares of the company’s stock worth $885,000 after buying an additional 9,349 shares during the last quarter. Finally, Prudential Financial Inc. boosted its stake in Steris Corp. by 34.1% in the first quarter. Prudential Financial Inc. now owns 425,398 shares of the company’s stock worth $30,225,000 after buying an additional 108,083 shares during the last quarter. 91.58% of the stock is currently owned by institutional investors and hedge funds.
About Steris Corp.
STERIS Corporation (STERIS) is a provider of infection prevention and other procedural products and services. The Company is focused on healthcare, pharmaceutical and research. The Company operates through three business segments: Healthcare, Life Sciences and STERIS Isomedix Services. The Healthcare segment provides surgical, sterile processing, infection prevention and gastrointestinal solutions.
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