Stericycle Inc. (NASDAQ:SRCL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued on Friday.
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 that alter its current method of doing business and ultimately increase costs and compress margins further. Stericycle also lowered its earnings guidance for 2016 due to macroeconomic challenges and unfavorable foreign exchange rates. Per its latest outlook, earnings are expected in the range of $4.68 to $4.75 per share, significantly down from $4.90 to $5.05 per share expected earlier. However, international growth rates are expected to accelerate due to increasing customer adoption of multiple services and expansion into new lines of business.”
Other equities analysts have also recently issued reports about the stock. Macquarie assumed coverage on shares of Stericycle in a report on Thursday, August 25th. They issued a “neutral” rating and a $96.00 target price on the stock. Jefferies Group reaffirmed a “buy” rating and issued a $112.50 target price (down from $125.00) on shares of Stericycle in a report on Wednesday, September 7th. Imperial Capital cut shares of Stericycle from an “in-line” rating to an “underperform” rating and cut their target price for the company from $100.00 to $93.50 in a report on Friday, July 29th. Wellington Shields cut shares of Stericycle from an “accumulate” rating to a “hold” rating in a report on Friday, July 29th. Finally, Wedbush cut their target price on shares of Stericycle from $95.00 to $85.00 and set a “neutral” rating on the stock in a report on Thursday, September 22nd. Four equities research analysts have rated the stock with a sell rating, ten have given a hold rating and three have assigned a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $103.54.
Stericycle (NASDAQ:SRCL) opened at 76.86 on Friday. Stericycle has a 52-week low of $74.95 and a 52-week high of $151.57. The firm has a market capitalization of $6.54 billion, a PE ratio of 27.05 and a beta of 0.21. The firm’s 50-day moving average is $81.32 and its 200-day moving average is $98.53.
Stericycle (NASDAQ:SRCL) last released its quarterly earnings data on Thursday, July 28th. The company reported $1.18 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.18. Stericycle had a net margin of 7.22% and a return on equity of 14.84%. The company had revenue of $891.60 million for the quarter, compared to analysts’ expectations of $910.29 million. During the same quarter last year, the company earned $1.14 earnings per share. The firm’s revenue for the quarter was up 24.6% on a year-over-year basis. On average, analysts anticipate that Stericycle will post $4.67 earnings per share for the current year.
In other Stericycle news, EVP John P. Schetz sold 1,398 shares of the business’s stock in a transaction on Wednesday, September 14th. The shares were sold at an average price of $81.85, for a total transaction 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Rodney F. Dammeyer sold 10,188 shares of the business’s stock in a transaction on Wednesday, August 17th. The stock was sold at an average price of $85.50, for a total transaction of $871,074.00. Following the sale, the director now owns 10,188 shares in the company, valued at $871,074. The disclosure for this sale can be found here. Company insiders own 3.30% of the company’s stock.
Several large investors have recently modified their holdings of SRCL. Parkside Financial Bank & Trust raised its stake in shares of Stericycle by 2.9% in the second quarter. Parkside Financial Bank & Trust now owns 1,432 shares of the company’s stock valued at $149,000 after buying an additional 41 shares during the last quarter. Genesee Valley Trust Co. raised its stake in shares of Stericycle by 1.0% in the second quarter. Genesee Valley Trust Co. now owns 4,511 shares of the company’s stock valued at $470,000 after buying an additional 43 shares during the last quarter. Spero Smith Investment Advisers Inc. OH raised its stake in shares of Stericycle by 0.3% in the second quarter. Spero Smith Investment Advisers Inc. OH now owns 16,883 shares of the company’s stock valued at $1,758,000 after buying an additional 50 shares during the last quarter. Ameritas Investment Partners Inc. raised its stake in shares of Stericycle by 1.7% in the second quarter. Ameritas Investment Partners Inc. now owns 3,091 shares of the company’s stock valued at $322,000 after buying an additional 53 shares during the last quarter. Finally, Mn Services Vermogensbeheer B.V. raised its stake in shares of Stericycle by 2.7% in the second quarter. Mn Services Vermogensbeheer B.V. now owns 2,159 shares of the company’s stock valued at $202,000 after buying an additional 57 shares during the last quarter. Institutional investors own 92.72% of the company’s stock.
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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