Stericycle Inc. (SRCL) Downgraded by Zacks Investment Research
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 that alter its current method of doing business and ultimately increase costs and compress margins further. Stericycle also lowered its earnings guidance for 2016 due to macroeconomic challenges and unfavorable foreign exchange rates. Per its latest outlook, earnings are expected in the range of $4.68 to $4.75 per share, significantly down from $4.90 to $5.05 per share expected earlier. However, international growth rates are expected to accelerate due to increasing customer adoption of multiple services and expansion into new lines of business.”
Other analysts have also issued reports about the company. Jefferies Group reaffirmed a buy rating and issued a $140.00 price target on shares of Stericycle in a research note on Monday, July 18th. Wellington Shields lowered Stericycle from an accumulate rating to a hold rating in a research note on Friday, July 29th. Macquarie initiated coverage on Stericycle in a research note on Thursday, August 25th. They issued a neutral rating and a $96.00 price target on the stock. Robert W. Baird lowered their price target on Stericycle from $99.00 to $85.00 and set a neutral rating on the stock in a research note on Friday, September 23rd. Finally, Wedbush lowered their price target on Stericycle from $95.00 to $85.00 and set a neutral rating on the stock in a research note on Thursday, September 22nd. Four investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have assigned a buy rating to the stock. The stock has an average rating of Hold and an average price target of $103.54.
Shares of Stericycle (NASDAQ:SRCL) opened at 76.16 on Friday. The stock has a market cap of $6.48 billion, a price-to-earnings ratio of 26.81 and a beta of 0.20. Stericycle has a 1-year low of $74.95 and a 1-year high of $151.57. The firm has a 50-day moving average price of $81.04 and a 200-day moving average price of $98.37.
Stericycle (NASDAQ:SRCL) last issued its quarterly earnings data on Thursday, July 28th. The company reported $1.18 EPS for the quarter, meeting the consensus estimate of $1.18. Stericycle had a return on equity of 14.84% and a net margin of 7.22%. The company had revenue of $891.60 million for the quarter, compared to analyst estimates of $910.29 million. During the same period last year, the company earned $1.14 earnings per share. Stericycle’s quarterly revenue was up 24.6% compared to the same quarter last year. Equities analysts forecast that Stericycle will post $4.67 EPS for the current year.
In related news, 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 value of $871,074.00. Following the sale, the director now owns 10,188 shares in the company, valued at approximately $871,074. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John P. Schetz sold 1,398 shares of the business’s stock in a transaction on Wednesday, September 14th. The shares were sold at an average price of $81.85, for a total value of $114,426.30. Following the completion of the sale, the executive vice president now owns 1,088 shares in the company, valued at approximately $89,052.80. The disclosure for this sale can be found here. 3.30% of the stock is owned by corporate insiders.
Several large investors have recently bought and sold shares of SRCL. Jana Partners LLC purchased a new stake in Stericycle during the first quarter valued at about $305,997,000. Generation Investment Management LLP purchased a new stake in Stericycle during the second quarter valued at about $237,333,000. Baillie Gifford & Co. increased its stake in Stericycle by 77.2% in the second quarter. Baillie Gifford & Co. now owns 2,940,515 shares of the company’s stock valued at $306,166,000 after buying an additional 1,281,519 shares in the last quarter. Swedbank purchased a new stake in Stericycle during the second quarter valued at about $104,155,000. Finally, Fairpointe Capital LLC purchased a new stake in Stericycle during the second quarter valued at about $65,273,000. Hedge funds and other institutional investors own 92.72% of the company’s stock.
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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