Carderock Capital Management Inc. Grows Holdings in STERIS plc $STE

Key Points

• Carderock Capital Management Inc. increased its stake in STERIS plc by 7.5% in the second quarter, purchasing an additional 1,969 shares, raising their total holdings to 28,387 shares worth approximately $6.82 million.
• STERIS recently declared an increased quarterly dividend of $0.63 per share, up from $0.57, which is set to be paid on September 26th, 2023, reflecting an annualized yield of 1.0%.
• STERIS reported a net margin of 11.61% and a year-over-year revenue growth of 8.8%, with earnings per share surpassing estimates at $2.34 for the last quarter.

Carderock Capital Management Inc. increased its stake in shares of STERIS plc (NYSE:STE - Free Report) by 7.5% in the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 28,387 shares of the medical equipment provider's stock after buying an additional 1,969 shares during the period. Carderock Capital Management Inc.'s holdings in STERIS were worth $6,819,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. boosted its position in STERIS by 416.0% during the first quarter. Geneos Wealth Management Inc. now owns 129 shares of the medical equipment provider's stock worth $29,000 after purchasing an additional 104 shares during the period. Grove Bank & Trust lifted its position in STERIS by 4,733.3% during the first quarter. Grove Bank & Trust now owns 145 shares of the medical equipment provider's stock valued at $33,000 after purchasing an additional 142 shares during the last quarter. Zions Bancorporation National Association UT purchased a new position in shares of STERIS during the first quarter worth approximately $37,000. ORG Wealth Partners LLC purchased a new position in shares of STERIS during the first quarter worth approximately $43,000. Finally, Golden State Wealth Management LLC increased its stake in shares of STERIS by 503.0% in the first quarter. Golden State Wealth Management LLC now owns 199 shares of the medical equipment provider's stock worth $45,000 after buying an additional 166 shares during the period. Institutional investors own 94.69% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently weighed in on STE shares. Jefferies Financial Group started coverage on shares of STERIS in a report on Thursday, May 29th. They issued a "hold" rating and a $263.00 price target on the stock. KeyCorp upped their price target on shares of STERIS from $277.00 to $288.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 22nd. Wall Street Zen upgraded shares of STERIS from a "buy" rating to a "strong-buy" rating in a research note on Sunday, September 14th. Finally, Morgan Stanley upped their target price on shares of STERIS from $276.00 to $295.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $273.50.

Insider Activity

In related news, Director Cynthia L. Feldmann sold 3,495 shares of the stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $241.56, for a total value of $844,252.20. Following the completion of the sale, the director directly owned 705 shares of the company's stock, valued at approximately $170,299.80. This represents a 83.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Mohsen Sohi sold 4,110 shares of the stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $241.96, for a total transaction of $994,455.60. Following the completion of the sale, the director directly owned 22,361 shares of the company's stock, valued at $5,410,467.56. This represents a 15.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 18,709 shares of company stock valued at $4,546,940. 1.07% of the stock is owned by insiders.

STERIS Stock Performance

Shares of NYSE STE traded up $1.04 during midday trading on Monday, hitting $249.82. 214,791 shares of the company's stock traded hands, compared to its average volume of 589,503. STERIS plc has a 1 year low of $200.98 and a 1 year high of $253.00. The stock has a market capitalization of $24.60 billion, a price-to-earnings ratio of 38.26 and a beta of 0.95. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.53 and a current ratio of 2.22. The firm has a fifty day moving average of $239.18 and a 200 day moving average of $234.07.

STERIS (NYSE:STE - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The medical equipment provider reported $2.34 EPS for the quarter, beating the consensus estimate of $2.32 by $0.02. STERIS had a net margin of 11.61% and a return on equity of 14.17%. The firm had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same quarter in the prior year, the firm earned $2.03 EPS. The business's revenue for the quarter was up 8.8% compared to the same quarter last year. On average, analysts forecast that STERIS plc will post 9.08 earnings per share for the current year.

STERIS Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Thursday, September 4th will be issued a $0.63 dividend. The ex-dividend date of this dividend is Thursday, September 4th. This represents a $2.52 annualized dividend and a yield of 1.0%. This is a positive change from STERIS's previous quarterly dividend of $0.57. STERIS's payout ratio is currently 38.59%.

About STERIS

STERIS plc provides infection prevention products and services worldwide. It operates through four segments: Healthcare, Applied Sterilization Technologies, Life Sciences, and Dental. The Healthcare segment offers cleaning chemistries and sterility assurance products; automated endoscope reprocessing system and tracking products; endoscopy accessories, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in the operating room, including surgical tables, lights, and connectivity solutions, as well as equipment management services.