Sotera Health (NASDAQ:SHC) Upgraded to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Sotera Health to “strong-buy” from “buy.” Across 11 analysts, the stock carries a “Moderate Buy” consensus rating with an average price target of $21.50.
• Sotera Health reported quarterly EPS of $0.26, beating estimates of $0.24, while revenue rose 9.2% year over year to $321.38 million. Shares opened at $19.27, near their 52-week high of $19.85.
• Insiders sold approximately 1.29 million shares worth $24.0 million over the past 90 days, while institutional investors and hedge funds own 91.03% of the company.

Sotera Health (NASDAQ:SHC - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued on Saturday.

Several other research firms also recently commented on SHC. Piper Sandler reiterated an "overweight" rating and issued a $25.00 target price (up from $22.00) on shares of Sotera Health in a research report on Friday, August 7th. UBS Group set a $19.00 price target on Sotera Health in a report on Wednesday, June 24th. Barclays upped their price objective on Sotera Health from $19.00 to $22.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. The Goldman Sachs Group began coverage on shares of Sotera Health in a report on Friday, June 5th. They issued a "buy" rating and a $20.00 price objective for the company. Finally, JPMorgan Chase & Co. lifted their target price on shares of Sotera Health from $16.00 to $18.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $21.50.

Sotera Health Stock Down 1.1%

Shares of NASDAQ:SHC opened at $19.27 on Friday. The company has a fifty day moving average of $18.12 and a 200-day moving average of $16.41. The company has a market capitalization of $5.50 billion, a PE ratio of 33.81 and a beta of 1.77. The company has a debt-to-equity ratio of 3.33, a quick ratio of 2.55 and a current ratio of 2.80. Sotera Health has a 52-week low of $13.09 and a 52-week high of $19.85.

Sotera Health (NASDAQ:SHC - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.02. The company had revenue of $321.38 million during the quarter, compared to analysts' expectations of $309.70 million. Sotera Health had a return on equity of 40.12% and a net margin of 13.44%.Sotera Health's revenue was up 9.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.20 EPS. Sotera Health has set its FY 2026 guidance at 0.950-1.010 EPS. On average, equities analysts predict that Sotera Health will post 0.86 EPS for the current fiscal year.

Insider Buying and Selling at Sotera Health

In related news, insider Michael P. Rutz sold 150,000 shares of the firm's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $18.84, for a total transaction of $2,826,000.00. Following the completion of the transaction, the insider directly owned 334,279 shares of the company's stock, valued at $6,297,816.36. This trade represents a 30.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Michael B. Jr. Petras sold 850,000 shares of Sotera Health stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $18.50, for a total value of $15,725,000.00. Following the transaction, the chairman directly owned 3,969,393 shares in the company, valued at $73,433,770.50. The trade was a 17.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,294,515 shares of company stock valued at $23,999,528. 15.36% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sotera Health

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in Sotera Health during the 2nd quarter valued at approximately $428,635,000. Sculptor Capital LP acquired a new position in shares of Sotera Health in the 2nd quarter worth approximately $426,000,000. Vanguard Group Inc. lifted its position in shares of Sotera Health by 16.7% in the 4th quarter. Vanguard Group Inc. now owns 19,228,375 shares of the company's stock worth $339,189,000 after purchasing an additional 2,756,583 shares during the period. Sachem Head Capital Management LP lifted its position in shares of Sotera Health by 47.2% in the 4th quarter. Sachem Head Capital Management LP now owns 11,645,000 shares of the company's stock worth $205,418,000 after purchasing an additional 3,735,000 shares during the period. Finally, Janus Henderson Group PLC boosted its stake in shares of Sotera Health by 35.3% in the 1st quarter. Janus Henderson Group PLC now owns 9,162,191 shares of the company's stock valued at $131,413,000 after purchasing an additional 2,390,132 shares during the last quarter. 91.03% of the stock is owned by institutional investors and hedge funds.

About Sotera Health

Sotera Health Inc NASDAQ: SHC is a global provider of sterilization and laboratory testing services that support the medical device, pharmaceutical, life sciences and consumer product industries. Headquartered in Jacksonville, Florida, the company offers a suite of services designed to ensure products meet rigorous safety and regulatory requirements before reaching market.

Sotera Health operates through three primary service platforms. Its Sterigenics division delivers contract sterilization solutions, including ethylene oxide (EtO), gamma irradiation, electron beam and X-ray technologies.

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