Sotera Health (NASDAQ:SHC) Shares Gap Up After Earnings Beat

Key Points

• Sotera Health shares experienced a significant increase, gapping up from $11.22 to $13.50 after the company reported quarterly earnings of $0.20 per share, beating expectations by $0.03.
• The company's revenue rose by 6.4% compared to the same quarter last year, with a net margin of 2.24% and return on equity of 41.08%.
• Institutional investors hold 91.03% of Sotera Health's stock, with notable increases in holdings from several hedge funds in the first quarter.

Sotera Health Company (NASDAQ:SHC - Get Free Report)'s share price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $11.22, but opened at $13.50. Sotera Health shares last traded at $13.45, with a volume of 355,601 shares trading hands.

The company reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.17 by $0.03. Sotera Health had a net margin of 2.24% and a return on equity of 41.08%. The firm had revenue of $294.34 million during the quarter, compared to the consensus estimate of $275.81 million. During the same quarter last year, the firm earned $0.19 EPS. The firm's revenue for the quarter was up 6.4% compared to the same quarter last year.

Wall Street Analyst Weigh In

A number of research analysts recently commented on SHC shares. Wall Street Zen raised shares of Sotera Health from a "hold" rating to a "buy" rating in a report on Saturday, June 28th. Piper Sandler lowered their price target on shares of Sotera Health from $15.00 to $13.00 and set a "neutral" rating for the company in a report on Wednesday, April 23rd. Barclays reissued an "overweight" rating on shares of Sotera Health in a research note on Friday. Finally, The Goldman Sachs Group raised shares of Sotera Health from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $14.00 to $17.00 in a research note on Monday, May 5th. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $16.00.

Institutional Trading of Sotera Health

Several institutional investors have recently added to or reduced their stakes in the company. Quarry LP bought a new stake in shares of Sotera Health during the fourth quarter valued at approximately $28,000. UMB Bank n.a. raised its stake in shares of Sotera Health by 112.8% during the second quarter. UMB Bank n.a. now owns 2,635 shares of the company's stock valued at $29,000 after acquiring an additional 1,397 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its stake in shares of Sotera Health by 3,690.1% during the first quarter. Caitong International Asset Management Co. Ltd now owns 2,691 shares of the company's stock valued at $31,000 after acquiring an additional 2,620 shares in the last quarter. Parallel Advisors LLC raised its stake in shares of Sotera Health by 124.0% during the second quarter. Parallel Advisors LLC now owns 3,340 shares of the company's stock valued at $37,000 after acquiring an additional 1,849 shares in the last quarter. Finally, Summit Securities Group LLC bought a new stake in shares of Sotera Health during the first quarter valued at approximately $67,000. Institutional investors own 91.03% of the company's stock.

Sotera Health Stock Up 24.5%

The company's 50 day moving average price is $11.63 and its two-hundred day moving average price is $12.03. The company has a quick ratio of 2.19, a current ratio of 2.46 and a debt-to-equity ratio of 5.55. The stock has a market cap of $3.97 billion, a P/E ratio of 174.65 and a beta of 1.81.

Sotera Health Company Profile

Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems.