STERIS (NYSE:STE) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wall Street Zen has downgraded STERIS from a "strong-buy" to a "buy" rating, reflecting changing sentiment among analysts regarding the stock's performance.
• Several analysts, including those from Morgan Stanley and JMP Securities, have raised their price targets for the stock, indicating a consensus average target price of $273.50.
• Insider trading activity has been notable, with recent sales of shares by directors suggesting a 15.53% decrease in ownership for one of them, raising questions about insider confidence.

Wall Street Zen downgraded shares of STERIS (NYSE:STE - Free Report) from a strong-buy rating to a buy rating in a research report sent to investors on Saturday morning.

STE has been the topic of a number of other research reports. Jefferies Financial Group started coverage on STERIS in a report on Thursday, May 29th. They set a "hold" rating and a $263.00 target price on the stock. JMP Securities raised their price objective on STERIS from $265.00 to $280.00 and gave the stock a "market outperform" rating in a research note on Friday, May 16th. Morgan Stanley raised their price objective on STERIS from $276.00 to $295.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Citigroup reaffirmed an "outperform" rating on shares of STERIS in a research note on Friday, May 16th. Finally, Stephens reaffirmed an "overweight" rating and set a $250.00 price objective on shares of STERIS in a research note on Thursday, May 15th. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $273.50.

STERIS Trading Up 0.1%

STE traded up $0.32 during midday trading on Friday, reaching $248.64. 396,163 shares of the company were exchanged, compared to its average volume of 590,206. 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 has a one year low of $200.98 and a one year high of $252.79. The stock has a market capitalization of $24.49 billion, a P/E ratio of 38.08 and a beta of 0.95. The stock's 50-day simple moving average is $236.61 and its 200 day simple moving average is $232.52.

STERIS (NYSE:STE - Get Free Report) last issued its earnings results on Wednesday, August 6th. The medical equipment provider reported $2.34 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analysts' expectations of $1.36 billion. During the same quarter last year, the business earned $2.03 earnings per share. The company's revenue was up 8.8% compared to the same quarter last year. As a group, analysts forecast that STERIS will post 9.08 earnings per share for the current fiscal year.

STERIS Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Stockholders 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 dividend yield of 1.0%. This is a positive change from STERIS's previous quarterly dividend of $0.57. The ex-dividend date is Thursday, September 4th. STERIS's dividend payout ratio is presently 38.59%.

Insider Transactions at STERIS

In other news, Director Cynthia L. Feldmann sold 3,495 shares of the business's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $241.56, for a total value of $844,252.20. Following the sale, the director directly owned 705 shares in the company, valued at $170,299.80. The trade was a 83.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Mohsen Sohi sold 4,110 shares of the business's stock in a transaction dated 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 approximately $5,410,467.56. This trade represents a 15.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 18,709 shares of company stock valued at $4,546,940. 1.07% of the stock is currently owned by company insiders.

Institutional Trading of STERIS

Institutional investors have recently modified their holdings of the company. QRG Capital Management Inc. increased its position in shares of STERIS by 122.5% in the first quarter. QRG Capital Management Inc. now owns 2,832 shares of the medical equipment provider's stock valued at $642,000 after acquiring an additional 1,559 shares during the last quarter. Allianz Asset Management GmbH increased its position in shares of STERIS by 31.9% in 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 acquiring an additional 24,809 shares during the last quarter. Dynamic Advisor Solutions LLC increased its position in shares of STERIS by 23.6% in the first quarter. Dynamic Advisor Solutions LLC now owns 1,203 shares of the medical equipment provider's stock valued at $273,000 after acquiring an additional 230 shares during the last quarter. Golden State Wealth Management LLC increased its position in shares of STERIS by 503.0% in the first quarter. Golden State Wealth Management LLC now owns 199 shares of the medical equipment provider's stock valued at $45,000 after acquiring an additional 166 shares during the last quarter. Finally, Vontobel Holding Ltd. increased its position in shares of STERIS by 17.1% in the first quarter. Vontobel Holding Ltd. now owns 2,071 shares of the medical equipment provider's stock valued at $469,000 after acquiring an additional 302 shares during the last quarter. 94.69% of the stock is currently owned by institutional investors.

STERIS Company Profile

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.