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

Key Points

• Analysts give STERIS a “Moderate Buy” consensus: Four of five covering brokerages rate the stock a buy, with an average 12-month price target of $278 versus a recent price of $218.72.
• STERIS reported quarterly EPS of $2.83, slightly below the $2.86 consensus, while revenue reached $1.59 billion and grew 6.7% year over year. The company expects fiscal 2027 EPS of $11.10–$11.30.
• The company pays a quarterly dividend of $0.63, equivalent to a 1.2% annualized yield, while institutional investors own a substantial 94.69% of outstanding shares.

Shares of STERIS plc (NYSE:STE - Get Free Report) have received a consensus rating of "Moderate Buy" from the five brokerages that are currently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $278.00.

A number of analysts have weighed in on STE shares. KeyCorp decreased their target price on shares of STERIS from $291.00 to $269.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 13th. Wall Street Zen lowered STERIS from a "strong-buy" rating to a "buy" rating in a research note on Saturday, June 6th. Piper Sandler reiterated an "overweight" rating and issued a $270.00 price objective on shares of STERIS in a report on Thursday, May 21st. UBS Group initiated coverage on shares of STERIS in a research report on Tuesday. They issued a "buy" rating for the company. Finally, Weiss Ratings downgraded STERIS from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 27th.

STERIS Price Performance

Shares of NYSE:STE opened at $218.72 on Tuesday. The firm has a 50 day moving average of $211.80 and a 200-day moving average of $227.11. STERIS has a 12 month low of $195.14 and a 12 month high of $269.44. The company has a current ratio of 2.09, a quick ratio of 1.54 and a debt-to-equity ratio of 0.25. The stock has a market capitalization of $21.32 billion, a PE ratio of 27.58 and a beta of 0.92.

STERIS (NYSE:STE - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.59 billion. STERIS had a net margin of 13.18% and a return on equity of 14.15%. The firm's revenue for the quarter was up 6.7% on a year-over-year basis. During the same quarter 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. On average, equities research analysts predict that STERIS will post 11.18 EPS for the current fiscal year.

STERIS Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Monday, June 8th were paid a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Monday, June 8th. STERIS's dividend payout ratio is currently 31.78%.

Insider Activity at STERIS

In other STERIS news, CEO Daniel A. Carestio sold 3,054 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $214.64, for a total transaction of $655,510.56. Following the transaction, 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard C. Breeden sold 1,481 shares of the business's stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $209.51, for a total transaction of $310,284.31. Following the transaction, the director owned 38,964 shares in the company, valued at $8,163,347.64. The trade was a 3.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 7,328 shares of company stock worth $1,554,051 over the last quarter. Company insiders own 1.12% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in STE. Vanguard Group Inc. raised its position in shares of STERIS by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 12,286,535 shares of the medical equipment provider's stock worth $3,114,882,000 after purchasing an additional 73,014 shares during the period. State Street Corp grew its holdings in shares of STERIS by 6.0% during the fourth quarter. State Street Corp now owns 4,614,840 shares of the medical equipment provider's stock valued at $1,169,957,000 after buying an additional 260,001 shares during the last quarter. Geode Capital Management LLC increased its position in shares of STERIS by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 2,523,620 shares of the medical equipment provider's stock worth $637,259,000 after acquiring an additional 14,151 shares in the last quarter. Orbis Allan Gray Ltd lifted its position in STERIS by 5.6% in the 4th quarter. Orbis Allan Gray Ltd now owns 2,249,511 shares of the medical equipment provider's stock valued at $570,296,000 after acquiring an additional 120,200 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its stake in STERIS by 25.7% during the 1st 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 during the last quarter. 94.69% of the stock is 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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