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

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 lowered shares of STERIS (NYSE:STE - Free Report) from a strong-buy rating to a buy rating in a research note issued to investors on Saturday.

Several other analysts have also recently weighed in on the stock. Morgan Stanley lifted their price objective on shares of STERIS from $276.00 to $295.00 and gave the stock an "overweight" rating in a research note on Friday, August 8th. Citigroup reiterated an "outperform" rating on shares of STERIS in a research note on Friday, May 16th. Jefferies Financial Group initiated coverage on shares of STERIS in a research note on Thursday, May 29th. They issued a "hold" rating and a $263.00 price objective for the company. JMP Securities lifted their price objective on shares of STERIS from $265.00 to $280.00 and gave the stock a "market outperform" rating in a research note on Friday, May 16th. Finally, Stephens reaffirmed an "overweight" rating and issued a $250.00 price target on shares of STERIS in a research note on Thursday, May 15th. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, STERIS currently has an average rating of "Moderate Buy" and an average target price of $273.50.

STERIS Stock Up 3.5%

STERIS stock traded up $8.50 during mid-day trading on Friday, reaching $252.33. The company's stock had a trading volume of 758,380 shares, compared to its average volume of 445,756. The company has a market capitalization of $24.85 billion, a price-to-earnings ratio of 38.64 and a beta of 0.95. STERIS has a 12 month low of $200.98 and a 12 month high of $252.79. The business's 50 day simple moving average is $237.16 and its 200 day simple moving average is $232.91. 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 announced its quarterly earnings data on Wednesday, August 6th. The medical equipment provider reported $2.34 EPS for the quarter, beating analysts' consensus estimates of $2.32 by $0.02. The company had revenue of $1.40 billion during the quarter, compared to the consensus estimate of $1.36 billion. STERIS had a net margin of 11.61% and a return on equity of 14.17%. The company's quarterly revenue was up 8.8% on a year-over-year basis. During the same quarter last year, the firm posted $2.03 EPS. As a group, research analysts anticipate that STERIS will post 9.08 earnings per share for the current year.

STERIS Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Thursday, September 4th will be given a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Thursday, September 4th. This is a boost from STERIS's previous quarterly dividend of $0.57. STERIS's dividend payout ratio is presently 38.59%.

Insider Activity at STERIS

In related news, Director Cynthia L. Feldmann sold 3,495 shares of the company's stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $241.56, for a total transaction of $844,252.20. Following the completion of the transaction, the director directly owned 705 shares in the company, valued at $170,299.80. This represents a 83.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Renato Tamaro sold 3,204 shares of the company's stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $249.24, for a total transaction of $798,564.96. Following the transaction, the vice president owned 7,221 shares of the company's stock, valued at approximately $1,799,762.04. This represents a 30.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 18,709 shares of company stock valued at $4,546,940 in the last quarter. 1.07% of the stock is owned by company insiders.

Hedge Funds Weigh In On STERIS

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Spurstone Advisory Services LLC acquired a new position in STERIS in the 2nd quarter valued at approximately $29,000. Geneos Wealth Management Inc. increased its position in STERIS by 416.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 129 shares of the medical equipment provider's stock valued at $29,000 after acquiring an additional 104 shares during the period. Grove Bank & Trust increased its position in STERIS by 4,733.3% in the 1st quarter. Grove Bank & Trust now owns 145 shares of the medical equipment provider's stock valued at $33,000 after acquiring an additional 142 shares during the period. Zions Bancorporation National Association UT acquired a new position in STERIS in the 1st quarter valued at approximately $37,000. Finally, ORG Wealth Partners LLC acquired a new stake in shares of STERIS during the first quarter worth $43,000. 94.69% of the stock is currently owned by institutional investors and hedge funds.

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.