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. In the past, the company was forced to reduce prices for LQ customers due to competitive pressures, which could be repeated in the future. This forces us to be bearish on the stock to some extent. 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. This network is difficult to replicate and allow Stericycle to compete effectively.”
Several other analysts have also recently issued reports on SRCL. Imperial Capital lowered their target price on shares of Stericycle from $100.00 to $95.00 and set an in-line rating on the stock in a research note on Thursday, May 26th. Royal Bank Of Canada reiterated a sell rating on shares of Stericycle in a research note on Thursday, May 26th. Northcoast Research cut shares of Stericycle from a buy rating to a neutral rating in a research note on Tuesday. Jefferies Group reiterated a buy rating and issued a $125.00 target price (down from $140.00) on shares of Stericycle in a research note on Friday, July 29th. Finally, Wellington Shields cut shares of Stericycle from an accumulate rating to a hold rating in a research note on Friday, July 29th. Four equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and three have given a buy rating to the company. Stericycle presently has an average rating of Hold and an average target price of $108.95.
Shares of Stericycle (NASDAQ:SRCL) opened at 79.26 on Tuesday. The company has a market cap of $6.74 billion, a PE ratio of 27.90 and a beta of 0.27. Stericycle has a 52 week low of $76.76 and a 52 week high of $151.57. The company has a 50 day moving average of $84.23 and a 200 day moving average of $102.26.
Stericycle (NASDAQ:SRCL) last posted its earnings results on Thursday, July 28th. The company reported $1.18 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $1.18. Stericycle had a net margin of 7.22% and a return on equity of 14.84%. The business had revenue of $891.60 million for the quarter, compared to analysts’ expectations of $910.29 million. During the same period in the prior year, the company posted $1.14 EPS. The business’s revenue for the quarter was up 24.6% compared to the same quarter last year. On average, analysts expect that Stericycle will post $4.67 EPS for the current year.
In related news, EVP John P. Schetz sold 1,398 shares of Stericycle stock in a transaction dated Wednesday, September 14th. The shares were sold at an average price of $81.85, for a total transaction of $114,426.30. Following the completion of the transaction, the executive vice president now directly owns 1,088 shares of the company’s stock, valued at approximately $89,052.80. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Mark C. Miller sold 24,665 shares of Stericycle stock in a transaction dated Friday, July 1st. The shares were sold at an average price of $104.55, for a total transaction of $2,578,725.75. Following the transaction, the director now directly owns 229,449 shares of the company’s stock, valued at $23,988,892.95. The disclosure for this sale can be found here. Corporate insiders own 3.30% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of SRCL. Parkside Financial Bank & Trust boosted its position 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 worth $149,000 after buying an additional 41 shares during the period. Genesee Valley Trust Co. boosted its position 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 worth $470,000 after buying an additional 43 shares during the period. Spero Smith Investment Advisers Inc. OH boosted its position 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 worth $1,758,000 after buying an additional 50 shares during the period. Ameritas Investment Partners Inc. boosted its position 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 worth $322,000 after buying an additional 53 shares during the period. Finally, Mn Services Vermogensbeheer B.V. boosted its position 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 worth $202,000 after buying an additional 57 shares during the period. 92.80% of the stock is owned by 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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