STERIS plc (NYSE:STE) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• STERIS plc has a consensus rating of "Moderate Buy" from eight research firms, with two analysts recommending a hold and six issuing buy ratings, alongside an average target price of $270.33.
• The company recently announced a dividend increase to $0.63 per share, up from $0.57, representing an annualized dividend yield of 1.1% with a payout ratio of 36.77%.
• STERIS reported earnings of $2.74 per share for the last quarter, surpassing analysts' estimates and showing a 5.7% increase in revenue compared to the same period last year.

STERIS plc (NYSE:STE - Get Free Report) has received a consensus rating of "Moderate Buy" from the eight research firms that are covering the company, MarketBeat.com reports. Two analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $270.3333.

A number of equities analysts recently issued reports on the company. JMP Securities lifted their target price on STERIS from $265.00 to $280.00 and gave the stock a "market outperform" rating in a report on Friday, May 16th. KeyCorp boosted their price objective on STERIS from $277.00 to $288.00 and gave the stock an "overweight" rating in a report on Tuesday, July 22nd. Jefferies Financial Group started coverage on shares of STERIS in a report on Thursday, May 29th. They issued a "hold" rating and a $263.00 target price for the company. Wall Street Zen lowered shares of STERIS from a "strong-buy" rating to a "buy" rating in a report on Friday, July 18th. Finally, Morgan Stanley raised shares of STERIS from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $260.00 to $276.00 in a research note on Tuesday, July 15th.

STERIS Stock Performance

NYSE:STE opened at $223.90 on Wednesday. The company has a 50-day moving average of $234.81 and a 200-day moving average of $228.35. The firm has a market cap of $22.03 billion, a price-to-earnings ratio of 36.11 and a beta of 0.92. The company has a current ratio of 1.96, a quick ratio of 1.39 and a debt-to-equity ratio of 0.29. STERIS has a twelve month low of $200.98 and a twelve month high of $252.79.

STERIS (NYSE:STE - Get Free Report) last issued its earnings results on Wednesday, May 14th. The medical equipment provider reported $2.74 earnings per share for the quarter, topping analysts' consensus estimates of $2.59 by $0.15. The firm had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.47 billion. STERIS had a net margin of 11.26% and a return on equity of 14.21%. The firm's revenue for the quarter was up 5.7% compared to the same quarter last year. During the same period last year, the firm posted $2.58 earnings per share. Analysts forecast that STERIS will post 9.08 earnings per share for the current fiscal year.

STERIS Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Thursday, September 4th will be given a dividend of $0.63 per share. The ex-dividend date of this dividend is Thursday, September 4th. This is a boost from STERIS's previous quarterly dividend of $0.57. This represents a $2.52 dividend on an annualized basis and a yield of 1.1%. STERIS's payout ratio is presently 36.77%.

Insider Buying and Selling

In other STERIS news, CEO Daniel A. Carestio sold 17,626 shares of the stock in a transaction that occurred on Thursday, June 5th. The shares were sold at an average price of $242.56, for a total value of $4,275,362.56. Following the completion of the sale, the chief executive officer owned 51,385 shares in the company, valued at $12,463,945.60. This represents a 25.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Cary L. Majors sold 12,828 shares of the business's stock in a transaction on 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 transaction, the senior vice president owned 11,372 shares in the company, valued at approximately $2,843,909.76. This represents a 53.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.07% of the company's stock.

Institutional Investors Weigh In On STERIS

Hedge funds and other institutional investors have recently made changes to their positions in the company. Fullcircle Wealth LLC increased its holdings in STERIS by 6.7% in the second quarter. Fullcircle Wealth LLC now owns 1,112 shares of the medical equipment provider's stock worth $254,000 after buying an additional 70 shares during the last quarter. Machina Capital S.A.S. acquired a new position in shares of STERIS during the 2nd quarter worth $460,000. State of Michigan Retirement System raised its holdings in shares of STERIS by 0.4% during the 2nd quarter. State of Michigan Retirement System now owns 26,748 shares of the medical equipment provider's stock valued at $6,425,000 after purchasing an additional 100 shares in the last quarter. Aurdan Capital Management LLC acquired a new stake in shares of STERIS in the 2nd quarter valued at $901,000. Finally, iA Global Asset Management Inc. boosted its holdings in STERIS by 13.8% in the second quarter. iA Global Asset Management Inc. now owns 6,530 shares of the medical equipment provider's stock worth $1,569,000 after purchasing an additional 791 shares in the last quarter. 94.69% of the stock is owned by hedge funds and other institutional investors.

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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