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.”
Other analysts have also issued reports about the company. Jefferies Group reaffirmed a buy rating and issued a $140.00 price objective on shares of Stericycle in a research note on Monday, July 18th. Wellington Shields lowered Stericycle from an accumulate rating to a hold rating in a research note on Friday, July 29th. Imperial Capital lowered Stericycle from an in-line rating to an underperform rating and reduced their price objective for the company from $100.00 to $93.50 in a research note on Friday, July 29th. Wedbush reduced their price objective on Stericycle from $95.00 to $85.00 and set a neutral rating on the stock in a research note on Thursday, September 22nd. Finally, Northcoast Research lowered Stericycle from a buy rating to a neutral rating in a research note on Tuesday, September 20th. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and three have issued a buy rating to the stock. The stock has a consensus rating of Hold and an average price target of $104.95.
Shares of Stericycle (NASDAQ:SRCL) opened at 79.76 on Wednesday. Stericycle has a 52 week low of $76.76 and a 52 week high of $151.57. The company has a market capitalization of $6.78 billion, a PE ratio of 28.07 and a beta of 0.21. The stock has a 50 day moving average price of $82.64 and a 200-day moving average price of $100.23.
Stericycle (NASDAQ:SRCL) last issued its quarterly earnings results on Thursday, July 28th. The company reported $1.18 EPS for the quarter, hitting the Zacks’ consensus estimate of $1.18. Stericycle had a return on equity of 14.84% and a net margin of 7.22%. 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 business earned $1.14 earnings per share. Stericycle’s revenue was up 24.6% on a year-over-year basis. Equities research analysts expect that Stericycle will post $4.67 EPS for the current year.
In other Stericycle news, Director Rodney F. Dammeyer sold 10,188 shares of Stericycle stock in a transaction that occurred on Wednesday, August 17th. The stock was sold at an average price of $85.50, for a total value of $871,074.00. Following the completion of the sale, the director now directly owns 10,188 shares in the company, valued at $871,074. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP John P. Schetz sold 1,398 shares of Stericycle stock in a transaction that occurred on Wednesday, September 14th. The stock was sold at an average price of $81.85, for a total value of $114,426.30. Following the completion of the sale, the executive vice president now owns 1,088 shares of the company’s stock, valued at $89,052.80. The disclosure for this sale can be found here. 3.30% of the stock is owned by corporate insiders.
A number of large investors have recently modified their holdings of SRCL. Balentine LLC increased its stake in shares of Stericycle by 34.9% in the first quarter. Balentine LLC now owns 1,064 shares of the company’s stock worth $134,000 after buying an additional 275 shares during the last quarter. Pinkerton Retirement Specialists LLC acquired a new stake in shares of Stericycle during the second quarter worth $131,000. Canada Pension Plan Investment Board increased its stake in shares of Stericycle by 54.1% in the first quarter. Canada Pension Plan Investment Board now owns 1,415 shares of the company’s stock worth $179,000 after buying an additional 497 shares during the last quarter. Parkside Financial Bank & Trust increased 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 worth $149,000 after buying an additional 41 shares during the last quarter. Finally, Meeder Asset Management Inc. acquired a new stake in shares of Stericycle during the second quarter worth $155,000. Institutional investors and hedge funds own 92.80% 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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