Sotera Health Company (NASDAQ:SHC) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analyst sentiment is moderately bullish: Eight of 11 analysts rate Sotera Health a “buy,” while three recommend holding the stock. The average 12-month price target is $21.50, above the reported $18.45 share price.
• Sotera Health exceeded quarterly expectations, reporting $0.26 in EPS versus a $0.24 consensus and revenue of $321.38 million versus $309.70 million expected. Revenue increased 9.2% year over year.
• Insiders have sold approximately $24 million of stock over the past 90 days, including sizable sales by the chairman and another insider, while institutional investors own 91.03% of shares.

Sotera Health Company (NASDAQ:SHC - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the eleven brokerages that are currently covering the company, MarketBeat reports. Three analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $21.50.

SHC has been the subject of several analyst reports. Barclays boosted their price objective on Sotera Health from $19.00 to $22.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. UBS Group set a $19.00 price objective on shares of Sotera Health in a research note on Wednesday, June 24th. Piper Sandler reissued an "overweight" rating and set a $25.00 target price on shares of Sotera Health in a research note on Tuesday, September 8th. 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 target price on the stock. Finally, JPMorgan Chase & Co. raised their target price on shares of Sotera Health from $16.00 to $18.00 and gave the stock a "neutral" rating in a report on Friday, August 7th.

Sotera Health Trading Up 0.9%

NASDAQ:SHC opened at $18.45 on Friday. The business's 50-day moving average is $18.55 and its two-hundred day moving average is $16.69. The firm has a market capitalization of $5.27 billion, a PE ratio of 32.37 and a beta of 1.77. Sotera Health has a 12 month low of $13.09 and a 12 month high of $19.85. The company has a debt-to-equity ratio of 3.33, a current ratio of 2.80 and a quick ratio of 2.55.

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

Insider Buying and Selling

In other Sotera Health news, Chairman Michael B. Jr. Petras sold 850,000 shares of Sotera Health stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $18.50, for a total value of $15,725,000.00. Following the completion of the sale, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Michael P. Rutz sold 150,000 shares of the business'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 sale, the insider owned 334,279 shares of the company's stock, valued at $6,297,816.36. The trade was a 30.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 1,294,515 shares of company stock worth $23,999,528 over the last ninety days. 15.36% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sotera Health

Several hedge funds have recently modified their holdings of the business. IFP Advisors Inc increased its holdings in Sotera Health by 1,105.6% in the 4th quarter. IFP Advisors Inc now owns 1,495 shares of the company's stock valued at $26,000 after buying an additional 1,371 shares during the period. Rothschild Investment LLC acquired a new stake in shares of Sotera Health during the 4th quarter valued at about $27,000. Meeder Asset Management Inc. acquired a new stake in shares of Sotera Health during the 2nd quarter valued at about $37,000. Root Financial Partners LLC increased its stake in Sotera Health by 217.5% in the first quarter. Root Financial Partners LLC now owns 2,124 shares of the company's stock valued at $30,000 after acquiring an additional 1,455 shares during the period. Finally, Eurizon Capital SGR S.p.A. bought a new stake in Sotera Health in the fourth quarter valued at about $40,000. 91.03% of the stock is owned by institutional investors.

Sotera Health Company Profile

Sotera Health Company NASDAQ: SHC is a global provider of sterilization, laboratory testing and other healthcare services designed to support infection prevention and product safety. The company serves medical device, pharmaceutical and healthcare customers, helping them meet regulatory and quality requirements throughout the product life cycle.

Sotera Health operates through three primary businesses. Sterigenics provides contract sterilization and microbial reduction services for medical devices, pharmaceutical products, food and other products.

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