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

Other institutional investors and hedge funds have also bought and sold shares of the company. Mercer Global Advisors Inc. ADV increased its stake in shares of STERIS by 4.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 3,756 shares of the medical equipment provider's stock valued at $772,000 after buying an additional 157 shares during the period. Cary Street Partners Financial LLC acquired a new stake in STERIS during the 4th quarter worth about $80,000. Captrust Financial Advisors grew its holdings in STERIS by 65.7% during the 4th quarter. Captrust Financial Advisors now owns 16,743 shares of the medical equipment provider's stock worth $3,442,000 after acquiring an additional 6,638 shares during the period. Centiva Capital LP acquired a new stake in STERIS during the 4th quarter worth about $636,000. Finally, EP Wealth Advisors LLC grew its holdings in STERIS by 20.1% during the 4th quarter. EP Wealth Advisors LLC now owns 1,011 shares of the medical equipment provider's stock worth $208,000 after acquiring an additional 169 shares during the period. Institutional investors and hedge funds own 94.69% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have weighed in on STE. Citigroup reiterated an "outperform" rating on shares of STERIS in a report on Friday, May 16th. Stephens reissued an "overweight" rating and set a $250.00 target price on shares of STERIS in a research report on Thursday, May 15th. JMP Securities boosted their target price on shares of STERIS from $265.00 to $280.00 and gave the stock a "market outperform" rating in a research report on Friday, May 16th. Morgan Stanley boosted their target price on shares of STERIS from $276.00 to $295.00 and gave the stock an "overweight" rating in a research report on Friday, August 8th. Finally, Jefferies Financial Group started coverage on shares of STERIS in a research report on Thursday, May 29th. They set a "hold" rating and a $263.00 price target on the stock. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $273.50.

Insider Buying and Selling

In related news, Director Cynthia L. Feldmann sold 3,495 shares of the business's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $241.56, for a total transaction of $844,252.20. Following the completion of the transaction, the director directly owned 705 shares in the company, valued at approximately $170,299.80. The trade was a 83.21% decrease in their position. The sale 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 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 $5,410,467.56. The trade was a 15.53% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 18,709 shares of company stock valued at $4,546,940. Insiders own 1.07% of the company's stock.

STERIS Stock Performance

NYSE:STE traded down $2.89 during trading hours on Friday, reaching $249.54. The company had a trading volume of 229,672 shares, compared to its average volume of 588,039. The company has a current ratio of 2.22, a quick ratio of 1.53 and a debt-to-equity ratio of 0.27. STERIS plc has a 52 week low of $200.98 and a 52 week high of $253.00. The firm has a market cap of $24.58 billion, a price-to-earnings ratio of 38.22 and a beta of 0.95. The firm's 50 day moving average price is $237.16 and its 200-day moving average price is $232.91.

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

STERIS Increases Dividend

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

STERIS Company 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.