Service Corporation International (NYSE:SCI) Stock Now Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analysts rate SCI “Moderate Buy”: Four of five covering firms recommend buying, while one recommends selling; the average one-year price target is $95.67.
• Quarterly results were mixed: SCI reported EPS of $0.97, below the $0.99 consensus, while revenue of $1.11 billion topped expectations and grew 4.6% year over year.
• SCI declared a quarterly dividend of $0.36 per share, equivalent to $1.44 annually and a 1.9% yield. Institutional investors and hedge funds own 85.53% of the stock.

Service Corporation International (NYSE:SCI - Get Free Report) has been given a consensus rating of "Moderate Buy" by the five research firms that are presently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation and four have assigned a buy recommendation to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $95.67.

SCI has been the subject of several research reports. UBS Group reduced their price target on shares of Service Corporation International from $105.00 to $95.00 and set a "buy" rating for the company in a research report on Friday, October 30th. Weiss Ratings upgraded shares of Service Corporation International from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, October 21st. Zacks Research lowered Service Corporation International from a "hold" rating to a "strong sell" rating in a report on Tuesday. Wall Street Zen downgraded Service Corporation International from a "hold" rating to a "sell" rating in a research note on Saturday, October 31st. Finally, JPMorgan Chase & Co. lowered their target price on Service Corporation International from $100.00 to $95.00 and set an "overweight" rating on the stock in a research note on Friday, October 30th.

Hedge Funds Weigh In On Service Corporation International

Institutional investors have recently bought and sold shares of the company. Bank of New York Mellon Corp purchased a new stake in shares of Service Corporation International in the second quarter valued at about $80,965,000. Turtle Creek Asset Management Inc. raised its holdings in Service Corporation International by 12.0% during the first quarter. Turtle Creek Asset Management Inc. now owns 1,161,496 shares of the company's stock worth $95,835,000 after purchasing an additional 124,151 shares in the last quarter. Aureus Asset Management LLC lifted its position in Service Corporation International by 196.8% in the first quarter. Aureus Asset Management LLC now owns 112,192 shares of the company's stock valued at $9,257,000 after purchasing an additional 74,387 shares during the period. Public Employees Retirement System of Ohio purchased a new stake in Service Corporation International in the 2nd quarter valued at approximately $2,904,000. Finally, Handelsbanken Fonder AB lifted its holdings in shares of Service Corporation International by 3.8% in the 2nd quarter. Handelsbanken Fonder AB now owns 881,985 shares of the company's stock valued at $66,996,000 after buying an additional 32,137 shares during the period. 85.53% of the stock is owned by institutional investors and hedge funds.

Service Corporation International Stock Performance

Shares of SCI stock opened at $77.10 on Thursday. Service Corporation International has a 1 year low of $68.41 and a 1 year high of $90.99. The company has a debt-to-equity ratio of 3.16, a quick ratio of 0.36 and a current ratio of 0.40. The firm has a market cap of $10.48 billion, a price-to-earnings ratio of 19.13, a PEG ratio of 1.89 and a beta of 0.77. The stock's 50-day moving average is $79.56 and its two-hundred day moving average is $79.91.

Service Corporation International (NYSE:SCI - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The company reported $0.97 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.99 by ($0.02). The firm had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.10 billion. Service Corporation International had a return on equity of 34.96% and a net margin of 12.70%. The company's quarterly revenue was up 4.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.87 EPS. Analysts predict that Service Corporation International will post 4.00 earnings per share for the current year.

Service Corporation International Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be issued a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This represents a $1.44 annualized dividend and a dividend yield of 1.9%. Service Corporation International's dividend payout ratio (DPR) is currently 35.73%.

About Service Corporation International

Service Corporation International NYSE: SCI is a Houston-based provider of funeral, cremation and cemetery services. The company operates funeral homes, cemeteries and cremation facilities, offering arrangements for traditional funerals, memorial services and cremations, as well as cemetery property, burial services and related merchandise.

SCI serves families primarily in the United States and Canada through a network of locations and a portfolio of brands that includes Dignity Memorial, Funeraria del Angel and Neptune Society.

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