Select Equity Group L.P. Sells 384,540 Shares of STERIS plc $STE

Key Points

• Select Equity Group L.P. reduced its stake in STERIS plc by 14.8%, selling 384,540 shares, and now holds 2,215,190 shares worth approximately $502 million.
• STERIS recently reported quarterly earnings of $2.34 per share, beating estimates, with revenue of $1.40 billion, reflecting an 8.8% year-over-year increase.
• The company has increased its quarterly dividend from $0.57 to $0.63, marking an annualized dividend of $2.52 and a yield of 1.0%.

Select Equity Group L.P. trimmed its position in STERIS plc (NYSE:STE - Free Report) by 14.8% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,215,190 shares of the medical equipment provider's stock after selling 384,540 shares during the quarter. STERIS accounts for 2.2% of Select Equity Group L.P.'s holdings, making the stock its 18th biggest holding. Select Equity Group L.P. owned 2.25% of STERIS worth $502,073,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Park Edge Advisors LLC grew its holdings in STERIS by 1.0% in the 1st quarter. Park Edge Advisors LLC now owns 4,709 shares of the medical equipment provider's stock valued at $1,067,000 after buying an additional 47 shares in the last quarter. Blue Trust Inc. lifted its position in shares of STERIS by 16.5% during the 1st quarter. Blue Trust Inc. now owns 395 shares of the medical equipment provider's stock valued at $90,000 after acquiring an additional 56 shares during the period. Taylor Frigon Capital Management LLC lifted its position in shares of STERIS by 1.0% during the 1st quarter. Taylor Frigon Capital Management LLC now owns 6,280 shares of the medical equipment provider's stock valued at $1,423,000 after acquiring an additional 62 shares during the period. West Coast Financial LLC lifted its position in shares of STERIS by 3.9% during the 1st quarter. West Coast Financial LLC now owns 1,658 shares of the medical equipment provider's stock valued at $376,000 after acquiring an additional 63 shares during the period. Finally, Cetera Investment Advisers lifted its position in shares of STERIS by 0.9% during the 1st quarter. Cetera Investment Advisers now owns 6,999 shares of the medical equipment provider's stock valued at $1,586,000 after acquiring an additional 63 shares during the period. 94.69% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Stephens reiterated an "overweight" rating and set a $250.00 target price on shares of STERIS in a research report on Thursday, May 15th. KeyCorp upped their target price on STERIS from $277.00 to $288.00 and gave the company an "overweight" rating in a research report on Tuesday, July 22nd. Citigroup reiterated an "outperform" rating on shares of STERIS in a research report on Friday, May 16th. Morgan Stanley upped their target price on STERIS from $276.00 to $295.00 and gave the company an "overweight" rating in a research report on Friday, August 8th. Finally, JMP Securities upped their target price on STERIS from $265.00 to $280.00 and gave the company a "market outperform" rating in a research report on Friday, May 16th. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $273.50.

STERIS Trading Up 0.1%

Shares of STE traded up $0.32 during mid-day trading on Tuesday, reaching $248.64. 396,163 shares of the company were exchanged, compared to its average volume of 444,037. STERIS plc has a 52 week low of $200.98 and a 52 week high of $252.79. 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 stock has a market capitalization of $24.49 billion, a PE ratio of 38.08 and a beta of 0.95. The business has a 50 day simple moving average of $236.74 and a two-hundred day simple moving average of $232.63.

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

STERIS Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Thursday, September 4th will be given a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.0%. This is a positive change from STERIS's previous quarterly dividend of $0.57. The ex-dividend date is Thursday, September 4th. STERIS's dividend payout ratio is 38.59%.

Insider Buying and Selling

In other news, CAO Karen L. Burton sold 7,900 shares of the firm's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $241.73, for a total transaction of $1,909,667.00. Following the completion of the transaction, the chief accounting officer directly owned 5,994 shares in the company, valued at $1,448,929.62. This trade represents a 56.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Mohsen Sohi sold 4,110 shares of STERIS stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $241.96, for a total value of $994,455.60. Following the completion of the sale, the director owned 22,361 shares of the company's stock, valued at approximately $5,410,467.56. The trade was a 15.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 18,709 shares of company stock valued at $4,546,940 over the last three months. 1.07% of the stock is owned by insiders.

STERIS Profile

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.