STERIS (NYSE:STE) Raised to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded STERIS to “strong-buy” from “buy.” Overall analyst sentiment is “Moderate Buy,” with an average price target of $271.33.
• STERIS reported quarterly EPS of $2.59, beating estimates by $0.10, while revenue reached $1.49 billion and increased 7.3% year over year.
• The stock opened at $208.48, below its $271.33 analyst target; institutional investors own a substantial 94.69% of shares, while a company director recently sold about $956,800 worth of stock.

STERIS (NYSE:STE - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also commented on the company. UBS Group lowered their price target on STERIS from $275.00 to $270.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Weiss Ratings restated a "hold (c)" rating on shares of STERIS in a research note on Monday, August 24th. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $275.00 price objective (up from $270.00) on shares of STERIS in a report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, STERIS presently has an average rating of "Moderate Buy" and an average target price of $271.33.

STERIS Price Performance

STE stock opened at $208.48 on Friday. The company has a market capitalization of $20.33 billion, a P/E ratio of 25.49 and a beta of 0.92. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.35 and a current ratio of 1.91. STERIS has a 52-week low of $195.14 and a 52-week high of $269.44. The business has a 50-day simple moving average of $224.22 and a two-hundred day simple moving average of $218.25.

STERIS (NYSE:STE - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The medical equipment provider reported $2.59 EPS for the quarter, topping the consensus estimate of $2.49 by $0.10. STERIS had a return on equity of 14.34% and a net margin of 13.34%.The firm had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the prior year, the business posted $2.34 earnings per share. The company's quarterly revenue was up 7.3% compared to the same quarter last year. STERIS has set its FY 2027 guidance at 11.000-11.300 EPS. Research analysts expect that STERIS will post 11.12 EPS for the current fiscal year.

Insider Activity at STERIS

In related news, Director Mohsen Sohi sold 4,058 shares of STERIS stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $235.78, for a total transaction of $956,795.24. Following the sale, the director directly owned 24,305 shares in the company, valued at approximately $5,730,632.90. This trade represents a 14.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 1.12% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of STE. Wellington Management Group LLP increased its position in shares of STERIS by 21.9% during the 2nd quarter. Wellington Management Group LLP now owns 3,502,897 shares of the medical equipment provider's stock valued at $737,605,000 after purchasing an additional 629,532 shares during the last quarter. Janus Henderson Group PLC grew its position in STERIS by 25.7% during the first quarter. Janus Henderson Group PLC now owns 1,863,139 shares of the medical equipment provider's stock valued at $411,995,000 after buying an additional 380,504 shares during the period. Franklin Resources Inc. grew its position in STERIS by 0.6% during the fourth quarter. Franklin Resources Inc. now owns 1,252,844 shares of the medical equipment provider's stock valued at $317,621,000 after buying an additional 7,840 shares during the period. Dimensional Fund Advisors LP grew its position in STERIS by 4.3% during the first quarter. Dimensional Fund Advisors LP now owns 1,113,845 shares of the medical equipment provider's stock valued at $246,295,000 after buying an additional 46,391 shares during the period. Finally, Bessemer Group Inc. increased its holdings in STERIS by 8.8% during the first quarter. Bessemer Group Inc. now owns 1,048,636 shares of the medical equipment provider's stock worth $231,883,000 after buying an additional 85,188 shares during the last quarter. Institutional investors own 94.69% of the company's stock.

STERIS Company Profile

STERIS plc NYSE: STE provides products and services designed to support infection prevention, surgical procedures, and the manufacture of healthcare and pharmaceutical products. The company serves healthcare providers, pharmaceutical and biotechnology manufacturers, and other organizations that require controlled, sterile environments.

Its Healthcare segment offers sterilization and decontamination equipment, operating-room products, surgical instruments, endoscopy products, consumables, and related maintenance and procedural services.

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