Service Corporation International (NYSE:SCI) Short Interest Up 27.6% in March

Key Points

• Short interest jumped 27.6% in March to 7,204,028 shares (about 5.4% of shares short) with a days-to-cover ratio of 5.5, signaling increased bearish activity.
• Insider selling occurred recently: Director Tony Coelho sold 7,700 shares (~$615k) and CAO Tammy R. Moore sold 5,000 shares (~$402k), leaving insiders with 3.40% ownership.
• Analyst sentiment and dividend: The consensus rating is "Buy" with an average price target of $98, and the company raised its quarterly dividend to $0.34 (annualized $1.36, ~1.7% yield).

Service Corporation International (NYSE:SCI - Get Free Report) was the recipient of a significant growth in short interest in the month of March. As of March 31st, there was short interest totaling 7,204,028 shares, a growth of 27.6% from the March 15th total of 5,647,851 shares. Based on an average daily volume of 1,305,637 shares, the days-to-cover ratio is presently 5.5 days. Approximately 5.4% of the shares of the company are short sold.

Insider Transactions at Service Corporation International

In related news, Director Tony Coelho sold 7,700 shares of Service Corporation International stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $79.87, for a total transaction of $614,999.00. Following the completion of the sale, the director owned 28,388 shares of the company's stock, valued at $2,267,349.56. The trade was a 21.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Tammy R. Moore sold 5,000 shares of Service Corporation International stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $80.48, for a total value of $402,400.00. Following the sale, the chief accounting officer directly owned 21,654 shares of the company's stock, valued at $1,742,713.92. This trade represents a 18.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 3.40% of the company's stock.

Institutional Trading of Service Corporation International

Institutional investors and hedge funds have recently made changes to their positions in the business. Steigerwald Gordon & Koch Inc. purchased a new stake in shares of Service Corporation International in the third quarter valued at approximately $33,000. Root Financial Partners LLC purchased a new stake in shares of Service Corporation International in the third quarter valued at approximately $34,000. Quent Capital LLC purchased a new stake in shares of Service Corporation International in the third quarter valued at approximately $34,000. Sunbelt Securities Inc. purchased a new stake in shares of Service Corporation International in the third quarter valued at approximately $42,000. Finally, Sentry Investment Management LLC purchased a new stake in shares of Service Corporation International in the third quarter valued at approximately $46,000. 85.53% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms recently commented on SCI. Oppenheimer lifted their target price on Service Corporation International from $94.00 to $97.00 and gave the stock an "outperform" rating in a report on Thursday, April 2nd. Weiss Ratings upgraded Service Corporation International from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, February 2nd. JPMorgan Chase & Co. initiated coverage on Service Corporation International in a research report on Tuesday, January 20th. They set an "overweight" rating and a $110.00 price target for the company. Finally, Wall Street Zen cut Service Corporation International from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. Five analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company presently has an average rating of "Buy" and an average price target of $98.00.

Service Corporation International Stock Down 1.8%

Shares of SCI stock opened at $80.65 on Thursday. The stock has a 50 day moving average of $81.25 and a 200 day moving average of $80.56. The company has a current ratio of 0.55, a quick ratio of 0.50 and a debt-to-equity ratio of 3.10. The stock has a market cap of $11.19 billion, a P/E ratio of 21.22, a P/E/G ratio of 1.82 and a beta of 0.97. Service Corporation International has a twelve month low of $74.14 and a twelve month high of $86.67.

Service Corporation International (NYSE:SCI - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $1.14 EPS for the quarter, meeting analysts' consensus estimates of $1.14. The business had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.12 billion. Service Corporation International had a return on equity of 34.21% and a net margin of 12.59%.The business's revenue was up 1.7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.06 earnings per share. As a group, sell-side analysts expect that Service Corporation International will post 3.84 EPS for the current year.

Service Corporation International Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 13th were given a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 1.7%. This is a boost from Service Corporation International's previous quarterly dividend of $0.32. The ex-dividend date was Friday, March 13th. Service Corporation International's dividend payout ratio (DPR) is presently 35.79%.

About Service Corporation International

Service Corporation International NYSE: SCI is a leading provider of funeral, cremation and cemetery services in North America. Through its network of funeral homes, cemeteries, memorial parks and crematoria, the company offers a broad array of end-of-life services, including traditional funeral ceremonies, memorialization, burial and cremation. In addition to core services, SCI provides grief counseling, pre-need planning and merchandise such as caskets, vaults, urns and memorialization products.

Headquartered in Houston, Texas, Service Corporation International operates more than 1,900 funeral homes, over 450 cemeteries and 40 combination facilities across the United States and Canada.

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