Zacks Investment Research downgraded shares of Stericycle (NASDAQ:SRCL) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning.
According to Zacks, “Shares of Stericycle have underperformed the industry it belongs to in the past year. The company continues to operate in a highly-competitive industry where the barriers to entry are very low in the regulated waste collection and disposal business. Vast international presence exposes Stericycle to foreign currency exchange-rate risks. A debt-laden balance sheet remains a major concern. Despite such headwinds, Stericycle continues to increase its market share and expand geographic base with the help of acquisitions in both domestic and international markets. We also appreciate the company's consistent efforts to develop internally. To better meet customer demands, the company has been improving its solution offerings and platforms. Stericycle's focus on providing regulated business-to-business services to smaller businesses should boost its offerings.”
SRCL has been the subject of a number of other reports. BidaskClub raised shares of Stericycle from a hold rating to a buy rating in a research note on Tuesday, July 3rd. Jefferies Financial Group set a $75.00 price objective on shares of Stericycle and gave the stock a buy rating in a research note on Thursday, August 2nd. Barrington Research set a $72.00 price objective on shares of Stericycle and gave the stock a buy rating in a research note on Friday, October 5th. Robert W. Baird reaffirmed a hold rating and issued a $70.00 price objective on shares of Stericycle in a research note on Friday, August 3rd. Finally, BMO Capital Markets reaffirmed a hold rating and issued a $71.00 price objective on shares of Stericycle in a research note on Thursday, July 12th. Four equities research analysts have rated the stock with a sell rating, three have given a hold rating and three have issued a buy rating to the company’s stock. The company presently has an average rating of Hold and an average target price of $71.29.
Shares of SRCL opened at $52.55 on Tuesday. Stericycle has a 12-month low of $51.45 and a 12-month high of $76.73. The firm has a market cap of $5.04 billion, a PE ratio of 12.11, a P/E/G ratio of 1.38 and a beta of 0.35. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.87.
Stericycle (NASDAQ:SRCL) last released its quarterly earnings data on Thursday, August 2nd. The business services provider reported $1.17 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.13 by $0.04. Stericycle had a net margin of 5.03% and a return on equity of 14.04%. The company had revenue of $883.30 million during the quarter, compared to analyst estimates of $896.62 million. During the same period in the prior year, the firm earned $1.15 earnings per share. The firm’s revenue for the quarter was down 3.7% compared to the same quarter last year. Analysts predict that Stericycle will post 4.43 EPS for the current year.
In related news, CFO Daniel Ginnetti sold 5,000 shares of the company’s stock in a transaction dated Wednesday, August 1st. The shares were sold at an average price of $70.00, for a total value of $350,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Over the last ninety days, insiders sold 10,060 shares of company stock valued at $707,912. 3.50% of the stock is owned by insiders.
Institutional investors have recently made changes to their positions in the business. Whittier Trust Co. raised its holdings in Stericycle by 362.6% in the second quarter. Whittier Trust Co. now owns 1,087 shares of the business services provider’s stock worth $129,000 after purchasing an additional 852 shares in the last quarter. Federated Investors Inc. PA raised its holdings in Stericycle by 129.5% in the first quarter. Federated Investors Inc. PA now owns 2,088 shares of the business services provider’s stock worth $122,000 after purchasing an additional 1,178 shares in the last quarter. Dupont Capital Management Corp raised its holdings in Stericycle by 102.2% in the second quarter. Dupont Capital Management Corp now owns 2,089 shares of the business services provider’s stock worth $136,000 after purchasing an additional 1,056 shares in the last quarter. NumerixS Investment Technologies Inc raised its holdings in Stericycle by 285.0% in the second quarter. NumerixS Investment Technologies Inc now owns 2,695 shares of the business services provider’s stock worth $174,000 after purchasing an additional 1,995 shares in the last quarter. Finally, Intact Investment Management Inc. bought a new position in Stericycle in the second quarter worth about $202,000. Institutional investors and hedge funds own 95.47% of the company’s stock.
Stericycle, Inc, together with its subsidiaries, provides regulated and compliance solutions to the healthcare, retail, and commercial businesses in the United States and internationally. It collects and processes regulated and specialized waste for disposal services; and collects personal and confidential information for secure destruction, as well as offers training, consulting, recall/return, communication, and compliance services.
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