STERIS (NYSE:STE) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley has raised the target price for STERIS from $276.00 to $295.00, indicating a potential upside of 21.95%, and maintains an "overweight" rating on the stock.
• Several analysts, including JMP Securities and KeyCorp, have also increased their target prices and issued favorable ratings, with the consensus rating for STERIS at "Moderate Buy" and an average target price of $273.50.
• Recently, insider selling activity was reported, with significant sales by senior executives, including SVP Cary L. Majors and CEO Daniel A. Carestio, potentially raising concerns among investors about insider confidence in the stock.

STERIS (NYSE:STE - Get Free Report) had its target price upped by research analysts at Morgan Stanley from $276.00 to $295.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has an "overweight" rating on the medical equipment provider's stock. Morgan Stanley's target price would indicate a potential upside of 21.95% from the company's previous close.

Several other equities research analysts also recently weighed in on STE. JMP Securities increased their target price on shares of STERIS from $265.00 to $280.00 and gave the company a "market outperform" rating in a research note on Friday, May 16th. Jefferies Financial Group began coverage on shares of STERIS in a research note on Thursday, May 29th. They set a "hold" rating and a $263.00 price objective for the company. Wall Street Zen upgraded shares of STERIS from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Stephens restated an "overweight" rating and issued a $250.00 price objective on shares of STERIS in a research report on Thursday, May 15th. Finally, KeyCorp raised their price target on shares of STERIS from $277.00 to $288.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 22nd. Two investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, STERIS presently has an average rating of "Moderate Buy" and an average price target of $273.50.

STERIS Price Performance

Shares of NYSE:STE traded down $0.96 during midday trading on Friday, reaching $241.90. 158,199 shares of the company were exchanged, compared to its average volume of 605,076. The company has a current ratio of 2.22, a quick ratio of 1.53 and a debt-to-equity ratio of 0.27. The business's fifty day moving average is $234.13 and its two-hundred day moving average is $228.81. STERIS has a one year low of $200.98 and a one year high of $252.79. The stock has a market cap of $23.80 billion, a PE ratio of 36.98 and a beta of 0.92.

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

Insider Buying and Selling

In other STERIS news, SVP Cary L. Majors sold 12,828 shares of STERIS stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $250.08, for a total transaction of $3,208,026.24. Following the completion of the transaction, the senior vice president owned 11,372 shares in the company, valued at approximately $2,843,909.76. The trade was a 53.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Daniel A. Carestio sold 17,626 shares of the business's stock in a transaction that occurred on Thursday, June 5th. The shares were sold at an average price of $242.56, for a total transaction of $4,275,362.56. Following the completion of the transaction, the chief executive officer directly owned 51,385 shares of the company's stock, valued at approximately $12,463,945.60. This represents a 25.54% decrease in their position. The disclosure for this sale can be found here. 1.07% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On STERIS

Large investors have recently made changes to their positions in the business. Allworth Financial LP lifted its stake in STERIS by 7.3% in the second quarter. Allworth Financial LP now owns 661 shares of the medical equipment provider's stock valued at $159,000 after acquiring an additional 45 shares during the last quarter. Park Edge Advisors LLC lifted its stake in shares of STERIS by 1.0% during the 1st quarter. Park Edge Advisors LLC now owns 4,709 shares of the medical equipment provider's stock worth $1,067,000 after buying an additional 47 shares during the last quarter. Ashton Thomas Private Wealth LLC lifted its stake in shares of STERIS by 3.5% during the 1st quarter. Ashton Thomas Private Wealth LLC now owns 1,611 shares of the medical equipment provider's stock worth $365,000 after buying an additional 54 shares during the last quarter. Blue Trust Inc. boosted its holdings in shares of STERIS by 16.5% during the 1st quarter. Blue Trust Inc. now owns 395 shares of the medical equipment provider's stock worth $90,000 after buying an additional 56 shares during the period. Finally, Taylor Frigon Capital Management LLC boosted its holdings in shares of STERIS by 1.0% during the 1st quarter. Taylor Frigon Capital Management LLC now owns 6,280 shares of the medical equipment provider's stock worth $1,423,000 after buying an additional 62 shares during the period. 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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