STERIS plc (NYSE:STE) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• STERIS plc has received a consensus rating of "Moderate Buy" from eight analysts, with an average target price of $273.50.
• The company reported earnings per share of $2.34 for its last quarter, exceeding analysts' expectations and showing an 8.8% increase year-over-year in revenue.
• STERIS has announced an increase in its quarterly dividend to $0.63, reflecting a 1.0% annual yield, with the increase affecting shareholders of record on September 4th.

Shares of STERIS plc (NYSE:STE - Get Free Report) have earned an average rating of "Moderate Buy" from the eight brokerages that are presently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $273.50.

STE has been the topic of a number of research reports. Wall Street Zen upgraded STERIS from a "buy" rating to a "strong-buy" rating in a report on Sunday, September 14th. KeyCorp raised their price objective on STERIS from $277.00 to $288.00 and gave the company an "overweight" rating in a report on Tuesday, July 22nd. Jefferies Financial Group initiated coverage on STERIS in a report on Thursday, May 29th. They issued a "hold" rating and a $263.00 price objective on the stock. Finally, Morgan Stanley raised their price objective on STERIS from $276.00 to $295.00 and gave the company an "overweight" rating in a report on Friday, August 8th.

STERIS Price Performance

STERIS stock opened at $246.05 on Thursday. The company's fifty day moving average price is $240.44 and its 200 day moving average price is $234.38. STERIS has a 1 year low of $200.98 and a 1 year high of $253.00. The stock has a market capitalization of $24.23 billion, a P/E ratio of 37.68 and a beta of 0.95. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.53 and a current ratio of 2.22.

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

STERIS Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Thursday, September 4th will be issued a $0.63 dividend. This represents a $2.52 dividend on an annualized basis 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 payout ratio is 38.59%.

Insider Transactions at STERIS

In other news, Director Cynthia L. Feldmann sold 3,495 shares of STERIS stock in a transaction on Monday, August 11th. The stock was sold at an average price of $241.56, for a total transaction of $844,252.20. Following the transaction, the director owned 705 shares in the company, valued at $170,299.80. The trade was a 83.21% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Renato Tamaro sold 3,204 shares of STERIS 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 transaction, the vice president owned 7,221 shares in the company, valued at approximately $1,799,762.04. This represents a 30.73% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 18,709 shares of company stock worth $4,546,940. Company insiders own 1.07% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Texas Permanent School Fund Corp raised its holdings in shares of STERIS by 19.6% during the 2nd quarter. Texas Permanent School Fund Corp now owns 12,537 shares of the medical equipment provider's stock worth $3,012,000 after acquiring an additional 2,057 shares during the period. Osaic Holdings Inc. raised its holdings in shares of STERIS by 2.8% during the 2nd quarter. Osaic Holdings Inc. now owns 10,376 shares of the medical equipment provider's stock worth $2,484,000 after acquiring an additional 287 shares during the period. American Trust purchased a new position in shares of STERIS during the 2nd quarter worth $222,000. Orion Porfolio Solutions LLC raised its holdings in STERIS by 5.5% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 15,204 shares of the medical equipment provider's stock valued at $3,652,000 after buying an additional 788 shares during the period. Finally, Thrivent Financial for Lutherans raised its holdings in STERIS by 49.2% in the 2nd quarter. Thrivent Financial for Lutherans now owns 159,864 shares of the medical equipment provider's stock valued at $38,402,000 after buying an additional 52,746 shares during the period. Hedge funds and other institutional investors 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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