STERIS (NYSE:STE) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded STERIS to “Hold” from “Buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $277.25.
• STERIS reported quarterly EPS of $2.83, slightly below the $2.86 consensus estimate, while revenue matched expectations at $1.59 billion and increased 6.7% year over year.
• Shares opened at $228.75, with a market capitalization of $22.29 billion and a 52-week trading range of $195.14 to $269.44; insiders sold $1.55 million of stock during the latest quarter.

STERIS (NYSE:STE - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other research firms also recently commented on STE. UBS Group started coverage on shares of STERIS in a research report on Tuesday. They set a "buy" rating and a $275.00 target price on the stock. KeyCorp reduced their price target on STERIS from $291.00 to $269.00 and set an "overweight" rating for the company in a research report on Wednesday, May 13th. Weiss Ratings lowered STERIS from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 27th. Finally, Piper Sandler reissued an "overweight" rating and issued a $270.00 price objective on shares of STERIS in a research note on Thursday, May 21st. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $277.25.

STERIS Price Performance

Shares of STE opened at $228.75 on Friday. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.54 and a current ratio of 2.09. The firm has a market cap of $22.29 billion, a PE ratio of 28.85 and a beta of 0.92. The firm's 50 day moving average price is $212.99 and its 200 day moving average price is $226.56. STERIS has a twelve month low of $195.14 and a twelve month high of $269.44.

STERIS (NYSE:STE - Get Free Report) last posted its earnings results on Monday, May 11th. The medical equipment provider reported $2.83 EPS for the quarter, missing the consensus estimate of $2.86 by ($0.03). The business had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.59 billion. STERIS had a return on equity of 14.15% and a net margin of 13.18%.The business's revenue was up 6.7% on a year-over-year basis. During the same period in the prior year, the firm earned $2.74 earnings per share. STERIS has set its FY 2027 guidance at 11.100-11.300 EPS. As a group, research analysts expect that STERIS will post 11.17 EPS for the current fiscal year.

Insiders Place Their Bets

In other STERIS news, Director Richard C. Breeden sold 1,481 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $209.51, for a total transaction of $310,284.31. Following the completion of the sale, the director directly owned 38,964 shares in the company, valued at $8,163,347.64. This represents a 3.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Daniel A. Carestio sold 3,054 shares of the firm's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $214.64, for a total value of $655,510.56. Following the completion of the sale, the chief executive officer directly owned 65,021 shares in the company, valued at approximately $13,956,107.44. This represents a 4.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 7,328 shares of company stock valued at $1,554,051 in the last quarter. Insiders own 1.12% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Norges Bank acquired a new position in STERIS in the 4th quarter valued at approximately $320,298,000. AQR Capital Management LLC grew its holdings in shares of STERIS by 178.6% during the 3rd quarter. AQR Capital Management LLC now owns 1,183,070 shares of the medical equipment provider's stock worth $291,704,000 after purchasing an additional 758,423 shares in the last quarter. Boston Partners acquired a new stake in shares of STERIS during the 3rd quarter worth approximately $158,982,000. Orbis Allan Gray Ltd raised its stake in shares of STERIS by 36.0% in the second quarter. Orbis Allan Gray Ltd now owns 2,100,099 shares of the medical equipment provider's stock valued at $504,486,000 after purchasing an additional 556,088 shares in the last quarter. Finally, Janus Henderson Group PLC raised its stake in shares of STERIS by 25.7% in the first quarter. Janus Henderson Group PLC now owns 1,863,139 shares of the medical equipment provider's stock valued at $411,995,000 after purchasing an additional 380,504 shares in the last quarter. 94.69% of the stock is currently owned by institutional investors and hedge funds.

About STERIS

STERIS Corporation NYSE: STE is a global provider of infection prevention, contamination control and procedural products and services for the healthcare, life sciences, pharmaceutical and medical device industries. The company develops, manufactures and supports a broad portfolio of equipment and consumables designed to reduce risk of infection, maintain sterile environments and support critical clinical and manufacturing procedures.

Its offerings include sterilization and decontamination systems, instrument washers and washers-disinfectors, endoscope reprocessing solutions, surgical equipment and procedural disposables, and contamination-control products for cleanrooms and laboratories.

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