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

Key Points

• The consensus recommendation for STERIS plc (NYSE:STE) among brokerages is a "Moderate Buy," with two analysts suggesting a hold and seven recommending a buy.
• STERIS has recently raised its quarterly dividend from $0.57 to $0.63, reflecting an annual yield of 1.0% and a dividend payout ratio of 38.59%.
• In its latest earnings report, STERIS exceeded expectations with a revenue of $1.40 billion and earnings per share of $2.34, showing an 8.8% year-over-year revenue increase.

Shares of STERIS plc (NYSE:STE - Get Free Report) have earned an average rating of "Moderate Buy" from the nine ratings firms that are presently covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $273.50.

A number of equities research analysts have issued reports on STE shares. Wall Street Zen upgraded STERIS from a "buy" rating to a "strong-buy" rating in a research note on Sunday, September 14th. Morgan Stanley raised their target price on STERIS from $276.00 to $295.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Weiss Ratings reiterated a "buy (b)" rating on shares of STERIS in a research note on Tuesday, October 14th. Finally, KeyCorp raised their target price on STERIS from $277.00 to $288.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd.

STERIS Stock Performance

Shares of STE opened at $240.25 on Monday. The business's fifty day moving average price is $245.08 and its 200 day moving average price is $236.43. STERIS has a 12-month low of $200.98 and a 12-month high of $253.00. The stock has a market capitalization of $23.66 billion, a PE ratio of 36.79 and a beta of 1.01. 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 announced its quarterly earnings data on Wednesday, August 6th. The medical equipment provider reported $2.34 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts' expectations of $1.36 billion. During the same period last year, the business posted $2.03 earnings per share. The firm's revenue for the quarter was up 8.8% on a year-over-year basis. Equities research analysts forecast that STERIS will post 9.08 EPS for the current year.

STERIS Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 26th. Shareholders of record on Thursday, September 4th were paid a $0.63 dividend. The ex-dividend date was Thursday, September 4th. This is a positive change from STERIS's previous quarterly dividend of $0.57. This represents a $2.52 dividend on an annualized basis and a yield of 1.0%. STERIS's dividend payout ratio (DPR) is 38.59%.

Insider Buying and Selling

In other STERIS news, VP Renato Tamaro sold 3,204 shares of the firm's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $249.24, for a total value of $798,564.96. Following the sale, the vice president directly owned 7,221 shares in the company, valued at approximately $1,799,762.04. This trade represents a 30.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Mohsen Sohi sold 4,110 shares of the firm's stock in a transaction on Monday, August 11th. The shares were sold at an average price of $241.96, for a total value of $994,455.60. Following the completion of the sale, the director owned 22,361 shares in the company, valued at $5,410,467.56. The trade was a 15.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 18,868 shares of company stock valued at $4,585,389 in the last three months. 1.07% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. QRG Capital Management Inc. increased its holdings in shares of STERIS by 122.5% during the first quarter. QRG Capital Management Inc. now owns 2,832 shares of the medical equipment provider's stock valued at $642,000 after purchasing an additional 1,559 shares during the period. Foresight Group Ltd Liability Partnership acquired a new position in shares of STERIS during the first quarter valued at $25,958,000. Ascent Group LLC acquired a new position in shares of STERIS during the first quarter valued at $261,000. Allianz Asset Management GmbH increased its holdings in shares of STERIS by 31.9% during the first quarter. Allianz Asset Management GmbH now owns 102,488 shares of the medical equipment provider's stock valued at $23,229,000 after purchasing an additional 24,809 shares during the period. Finally, Golden State Wealth Management LLC increased its holdings in shares of STERIS by 503.0% during the first quarter. Golden State Wealth Management LLC now owns 199 shares of the medical equipment provider's stock valued at $45,000 after purchasing an additional 166 shares during the period. 94.69% of the stock is owned by institutional investors and hedge funds.

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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