According to Zacks, “Stericycle has a negative earnings surprise history, having missed estimates twice in the trailing four quarters. The recent spate of acquisitions is leading to higher overheads and integration-related expenses, which are weighing on margins. The company faces aggressive price wars that erode its profitability. Evolving environmental rules and regulations remain another headwind. Stericycle also lowered its earnings guidance for 2016 due to macroeconomic challenges. However, Stericycle’s network is the largest in the industry and provides it with routing efficiencies for its vehicles from the customer sites to the collection and processing facilities. The acquisition pool of the company also remains robust in multiple geographies and lines of business. International growth rates are expected to accelerate due to increasing customer adoption of multiple services and expansion into new lines of business.”
A number of other equities research analysts have also issued reports on the company. RBC Capital Markets reiterated an underperform rating and issued a $77.00 target price (down previously from $89.00) on shares of Stericycle in a research note on Monday, September 19th. Macquarie began coverage on Stericycle in a research note on Thursday, August 25th. They set a neutral rating and a $96.00 price objective for the company. Wellington Shields lowered Stericycle from an accumulate rating to a hold rating in a research note on Friday, July 29th. Jefferies Group restated a buy rating and set a $125.00 price objective on shares of Stericycle in a research note on Tuesday, August 23rd. Finally, Imperial Capital lowered Stericycle from an in-line rating to an underperform rating and lowered their price objective for the company from $100.00 to $93.50 in a research note on Friday, July 29th. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have assigned a buy rating to the company’s stock. Stericycle has an average rating of Hold and a consensus target price of $104.95.
Shares of Stericycle (NASDAQ:SRCL) opened at 80.14 on Wednesday. The stock has a market cap of $6.82 billion, a PE ratio of 28.21 and a beta of 0.21. Stericycle has a 1-year low of $76.76 and a 1-year high of $151.57. The stock’s 50 day moving average price is $82.85 and its 200 day moving average price is $100.78.
Stericycle (NASDAQ:SRCL) last posted its earnings results on Thursday, July 28th. The company reported $1.18 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $1.18. Stericycle had a return on equity of 14.84% and a net margin of 7.22%. The business earned $891.60 million during the quarter, compared to analyst estimates of $910.29 million. During the same quarter last year, the firm earned $1.14 earnings per share. The company’s revenue for the quarter was up 24.6% compared to the same quarter last year. On average, equities research analysts anticipate that Stericycle will post $4.67 EPS for the current fiscal year.
In other Stericycle news, Director Mark C. Miller sold 34,835 shares of Stericycle stock in a transaction on Friday, July 8th. The stock was sold at an average price of $104.52, for a total transaction of $3,640,954.20. Following the sale, the director now owns 244,284 shares of the company’s stock, valued at approximately $25,532,563.68. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP John P. Schetz sold 1,398 shares of Stericycle stock in a transaction on Wednesday, September 14th. The shares were sold at an average price of $81.85, for a total value of $114,426.30. Following the sale, the executive vice president now directly owns 1,088 shares in the company, valued at approximately $89,052.80. The disclosure for this sale can be found here. 3.30% of the stock is owned by corporate insiders.
Hedge funds have recently made changes to their positions in the stock. Tobam increased its stake in shares of Stericycle by 28.7% in the first quarter. Tobam now owns 428,461 shares of the company’s stock valued at $54,067,000 after buying an additional 95,460 shares during the last quarter. Impax Asset Management LTD increased its stake in shares of Stericycle by 4.4% in the first quarter. Impax Asset Management LTD now owns 244,416 shares of the company’s stock valued at $30,843,000 after buying an additional 10,325 shares during the last quarter. Bristlecone Advisors LLC increased its stake in shares of Stericycle by 30.7% in the first quarter. Bristlecone Advisors LLC now owns 19,065 shares of the company’s stock valued at $2,406,000 after buying an additional 4,475 shares during the last quarter. Impax Asset Management AIFM Ltd increased its stake in shares of Stericycle by 9.7% in the first quarter. Impax Asset Management AIFM Ltd now owns 87,401 shares of the company’s stock valued at $11,028,000 after buying an additional 7,703 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. increased its stake in shares of Stericycle by 0.8% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 2,289,722 shares of the company’s stock valued at $288,940,000 after buying an additional 19,063 shares during the last quarter. 92.80% of the stock is currently owned by hedge funds and other institutional investors.
Stericycle Company Profile
Stericycle, Inc is a business-to-business services provider with a focus on regulated and compliance solutions for healthcare, retail and commercial businesses. The Company’s solutions include the collection and processing of specialized waste for disposal, the collection of personal and confidential information for secure destruction, and a range of training, consulting, recall/return, communication and compliance services.
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