STERIS (NYSE:STE) Stock Jumps 4.1% - Here's Why

Key Points

• STERIS shares rose 4.1% to about $263.73 in Friday midday trading, though volume was 86% below its average.
• The company beat quarterly expectations, reporting adjusted earnings of $2.94 per share versus $2.68 forecast and revenue of $1.59 billion versus $1.56 billion; revenue increased 8.8% year over year.
• Analyst sentiment is broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $283.50, with Morgan Stanley and Jefferies upgrading the stock to Buy.

Shares of STERIS plc (NYSE:STE - Get Free Report) rose 4.1% during mid-day trading on Friday. The company traded as high as $263.14 and last traded at $263.7260. Approximately 109,130 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 769,788 shares. The stock had previously closed at $253.44.

Wall Street Analysts Forecast Growth

STE has been the topic of several research analyst reports. UBS Group dropped their price target on STERIS from $275.00 to $270.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Morgan Stanley upgraded STERIS from an "overweight" rating to a "buy" rating in a research note on Friday. Wall Street Zen downgraded STERIS from a "strong-buy" rating to a "buy" rating in a report on Sunday, October 11th. Weiss Ratings raised STERIS from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday. Finally, Jefferies Financial Group upgraded STERIS from a "hold" rating to a "buy" rating and upped their target price for the company from $232.00 to $305.00 in a research report on Friday. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $283.50.

STERIS Price Performance

The stock has a market capitalization of $25.55 billion, a PE ratio of 31.21 and a beta of 0.86. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.05 and a quick ratio of 1.44. The stock's fifty day moving average is $222.55 and its 200-day moving average is $224.61.

STERIS (NYSE:STE - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The medical equipment provider reported $2.94 earnings per share for the quarter, topping analysts' consensus estimates of $2.68 by $0.26. STERIS had a net margin of 13.41% and a return on equity of 14.80%. The business had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.56 billion. During the same quarter in the prior year, the firm posted $2.47 earnings per share. The company's revenue was up 8.8% compared to the same quarter last year. As a group, equities analysts predict that STERIS plc will post 11.46 earnings per share for the current fiscal year.

STERIS Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Stockholders of record on Tuesday, November 17th will be paid a dividend of $0.69 per share. This represents a $2.76 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Tuesday, November 17th. STERIS's dividend payout ratio is presently 32.74%.

Insider Buying and Selling

In related news, CFO Karen Burton sold 5,880 shares of STERIS stock in a transaction on Wednesday, November 11th. The shares were sold at an average price of $255.62, for a total value of $1,503,045.60. Following the sale, the chief financial officer owned 12,956 shares of the company's stock, valued at approximately $3,311,812.72. This trade represents a 31.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mohsen Sohi sold 4,893 shares of the business's stock in a transaction on Tuesday, November 10th. The stock was sold at an average price of $253.22, for a total transaction of $1,239,005.46. Following the completion of the sale, the director directly owned 24,305 shares of the company's stock, valued at approximately $6,154,512.10. The trade was a 16.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.12% of the company's stock.

Institutional Trading of STERIS

Several large investors have recently made changes to their positions in the company. Xcelsior Advisor Partners LLC lifted its stake in shares of STERIS by 18.2% in the 3rd quarter. Xcelsior Advisor Partners LLC now owns 3,949 shares of the medical equipment provider's stock valued at $829,000 after purchasing an additional 609 shares during the last quarter. Benjamin Edwards Inc. lifted its position in STERIS by 28.1% in the third quarter. Benjamin Edwards Inc. now owns 144,857 shares of the medical equipment provider's stock valued at $30,428,000 after buying an additional 31,789 shares during the last quarter. First Trust Advisors LP lifted its position in STERIS by 2.7% in the third quarter. First Trust Advisors LP now owns 251,561 shares of the medical equipment provider's stock valued at $52,830,000 after buying an additional 6,530 shares during the last quarter. Advisors Asset Management Inc. purchased a new position in STERIS during the third quarter worth about $820,000. Finally, Private Wealth Asset Management LLC purchased a new position in STERIS during the third quarter worth about $234,000. 94.69% of the stock is currently owned by hedge funds and other institutional investors.

STERIS Company Profile

STERIS plc NYSE: STE provides infection prevention and procedural products and services for healthcare, pharmaceutical, research, and other industries. Its offerings include sterilizers, washers and other equipment used to clean and sterilize medical devices and surgical instruments, as well as products for operating rooms and endoscopy procedures. The company also provides equipment installation, maintenance, repair, and training, along with contract sterilization and laboratory testing services.

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