STERIS plc (NYSE:STE) has received a consensus rating of “Moderate Buy” from nine ratings firms currently covering the stock. According to MarketBeat Ratings, two analysts have issued a hold rating, while seven have provided a buy rating. The average target price set by analysts is now $273.50.
Recent evaluations from several research firms have influenced this rating. KeyCorp increased its price target for STERIS from $277.00 to $288.00, designating the company as “overweight” in a note released on July 22, 2023. Following closely, Morgan Stanley raised its price objective from $276.00 to $295.00, maintaining an “overweight” rating as well. Weiss Ratings reaffirmed a “buy (b)” rating on October 14, 2023, and Wall Street Zen upgraded the stock from “buy” to “strong-buy” on September 14, 2023.
Financial Performance and Dividends
STERIS recently announced its quarterly earnings results on November 5, 2023. The medical equipment provider reported earnings per share of $2.47, surpassing analysts’ consensus estimates of $2.38 by $0.09. The company’s revenue for the quarter was $1.46 billion, exceeding projections of $1.43 billion. STERIS achieved a net margin of 11.61% and a return on equity of 14.17%. In the same quarter last year, it reported earnings of $2.14 per share.
Looking ahead, STERIS has set its fiscal year 2026 guidance between $10.150 and $10.30 EPS. Analysts anticipate that the company will report $9.08 earnings per share for the current year.
The company has also announced a quarterly dividend, scheduled for payment on December 18, 2023. Shareholders on record as of November 18, 2023 will receive a dividend of $0.63. This dividend yields approximately 1.0%, with an annualized payout of $2.52, reflecting a dividend payout ratio of 36.21%.
Insider Transactions and Institutional Holdings
In recent insider trading news, Vice President Renato Tamaro sold 3,204 shares on August 20, 2023, at an average price of $249.24, totaling nearly $800,000. Following this transaction, Tamaro holds 7,221 shares, which are valued at approximately $1.8 million. Another Vice President, John Adam Zangerle, sold 15,000 shares on November 11, 2023, at an average price of $265.14, amounting to nearly $4 million. Zangerle now owns 33,669 shares valued at approximately $8.9 million.
Over the past 90 days, insiders have sold a combined total of 18,363 shares valued at over $4.8 million. Currently, insiders own 1.07% of the company’s stock.
Several institutional investors have also adjusted their positions in STERIS. Magnolia Capital Advisors LLC increased its stake by 1.2% during the third quarter, now holding 3,588 shares worth $888,000. Colonial Trust Co SC raised its holdings by 0.3%, now owning 12,329 shares valued at $3.05 million. Allworth Financial LP and Geneos Wealth Management Inc. also increased their holdings by 7.3% and 34.9%, respectively.
Collectively, hedge funds and institutional investors own approximately 94.69% of STERIS’s stock, indicating strong institutional support for the company as it continues to navigate the medical equipment industry.
As STERIS plc moves forward, analysts and investors will closely monitor its performance, particularly in light of recent positive earnings and strategic adjustments in institutional investments.
