Steris (STE) Downgraded by Zacks Investment Research to “Sell”

Steris (NYSE:STE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday, August 6th.

According to Zacks, “Over the past three months, STERIS has been outperforming its industry. We are also encouraged by STERIS witnessing favorable underlying market trends along with new product and service offerings. The company's strong organic growth across specialty services, life sciences and applied sterilization segments also buoys optimism. Further, growth in free cash flow reserve is indicative of the company’s strong cash balance. The company has also made certain divestments and organizational changes, which are expected to better align with its operations.  On the flip side, a tough competitive landscape and currency headwinds continue to pose concerns. Moreover, STERIS' customers undergoing major consolidation pose threats for the company.”

Shares of NYSE:STE traded up $0.18 on Monday, hitting $114.42. 205,500 shares of the company traded hands, compared to its average volume of 378,279. Steris has a 52 week low of $82.88 and a 52 week high of $117.48. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.65 and a quick ratio of 2.02. The company has a market capitalization of $9.72 billion, a PE ratio of 27.53 and a beta of 1.14.

Steris (NYSE:STE) last issued its quarterly earnings results on Wednesday, August 8th. The medical equipment provider reported $1.00 earnings per share for the quarter, beating the consensus estimate of $0.99 by $0.01. Steris had a return on equity of 11.80% and a net margin of 11.42%. The firm had revenue of $638.76 million during the quarter, compared to the consensus estimate of $638.63 million. During the same period last year, the company earned $0.85 earnings per share. The company’s revenue was up 5.1% on a year-over-year basis. sell-side analysts anticipate that Steris will post 4.71 earnings per share for the current fiscal year.

In related 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 filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Loyal W. Wilson sold 3,609 shares of Steris stock in a transaction dated Tuesday, June 5th. The stock was sold at an average price of $105.16, for a total value of $379,522.44. Following the completion of the sale, the director now owns 32,765 shares of the company’s stock, valued at $3,445,567.40. The disclosure for this sale can be found here. Insiders have sold 17,715 shares of company stock valued at $1,930,385 over the last 90 days. Corporate insiders own 2.38% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Crossmark Global Holdings Inc. increased its holdings in Steris by 5.6% in the 2nd quarter. Crossmark Global Holdings Inc. now owns 9,190 shares of the medical equipment provider’s stock worth $965,000 after buying an additional 490 shares in the last quarter. Koch Industries Inc. increased its holdings in Steris by 5.6% in the 1st quarter. Koch Industries Inc. now owns 9,551 shares of the medical equipment provider’s stock worth $892,000 after buying an additional 509 shares in the last quarter. Brookstone Capital Management increased its holdings in Steris by 12.1% in the 2nd quarter. Brookstone Capital Management now owns 5,077 shares of the medical equipment provider’s stock worth $533,000 after buying an additional 549 shares in the last quarter. American International Group Inc. increased its holdings in Steris by 0.3% in the 2nd quarter. American International Group Inc. now owns 170,289 shares of the medical equipment provider’s stock worth $17,882,000 after buying an additional 572 shares in the last quarter. Finally, Atria Investments LLC increased its holdings in Steris by 17.6% in the 1st quarter. Atria Investments LLC now owns 3,921 shares of the medical equipment provider’s stock worth $366,000 after buying an additional 586 shares in the last quarter. Institutional investors own 88.83% of the company’s stock.

Steris Company Profile

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.

See Also: How Do You Calculate Return on Investment (ROI)?

Get a free copy of the Zacks research report on Steris (STE)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Steris (NYSE:STE)

Receive News & Ratings for Steris Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Steris and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply