STERIS (NYSE:STE) Hits New 12-Month High - What's Next?

Key Points

• STERIS plc shares reached a new 12-month high of $253.00 before closing at $251.57, signaling strong investor interest and confidence in the company's performance.
• Analysts have a consensus rating of "Moderate Buy" for STERIS, with price target estimates ranging from $250.00 to $295.00, indicating positive expectations for the company's stock moving forward.
• The company recently announced an increase in its quarterly dividend to $0.63 per share, reflecting a commitment to shareholder returns amid growing revenues and profits.

Shares of STERIS plc (NYSE:STE - Get Free Report) reached a new 52-week high during trading on Friday . The stock traded as high as $253.00 and last traded at $251.57, with a volume of 53793 shares. The stock had previously closed at $252.43.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. 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. Jefferies Financial Group assumed coverage on shares of STERIS in a research report on Thursday, May 29th. They issued a "hold" rating and a $263.00 target price for the company. Stephens reissued an "overweight" rating and issued a $250.00 target price on shares of STERIS in a research report on Thursday, May 15th. Citigroup reissued an "outperform" rating on shares of STERIS in a research report on Friday, May 16th. Finally, JMP Securities boosted their price objective on shares of STERIS from $265.00 to $280.00 and gave the stock a "market outperform" rating in a research note on Friday, May 16th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $273.50.

STERIS Price Performance

The firm has a market capitalization of $24.59 billion, a price-to-earnings ratio of 38.26 and a beta of 0.95. The stock's 50 day moving average price is $237.16 and its two-hundred day moving average price is $232.91. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.22 and a quick ratio of 1.53.

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

STERIS Increases Dividend

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

Insider Activity at STERIS

In related news, CAO Karen L. Burton sold 7,900 shares of the company's stock in a transaction on Monday, August 11th. The shares were 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 represents a 56.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Cynthia L. Feldmann sold 3,495 shares of the company's stock in a transaction on Monday, August 11th. The shares were sold at an average price of $241.56, for a total transaction of $844,252.20. Following the transaction, the director owned 705 shares of the company's stock, valued at approximately $170,299.80. The trade was a 83.21% 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 in the last 90 days. 1.07% of the stock is owned by company insiders.

Hedge Funds Weigh In On STERIS

Hedge funds have recently made changes to their positions in the business. Spurstone Advisory Services LLC acquired a new position in shares of STERIS in the 2nd quarter valued at $29,000. Geneos Wealth Management Inc. raised its stake in shares of STERIS by 416.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 129 shares of the medical equipment provider's stock valued at $29,000 after buying an additional 104 shares in the last quarter. Grove Bank & Trust raised its stake in shares of STERIS by 4,733.3% in the 1st quarter. Grove Bank & Trust now owns 145 shares of the medical equipment provider's stock valued at $33,000 after buying an additional 142 shares in the last quarter. Zions Bancorporation National Association UT acquired a new position in shares of STERIS in the 1st quarter valued at $37,000. Finally, ORG Wealth Partners LLC acquired a new position in shares of STERIS in the 1st quarter valued at $43,000. Institutional investors and hedge funds own 94.69% of the company's stock.

About STERIS

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.

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