STERIS (NYSE:STE) Shares Gap Down – Here’s What Happened

STERIS plc (NYSE:STE)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $264.27, but opened at $240.19. STERIS shares last traded at $242.8360, with a volume of 436,522 shares.

Key Headlines Impacting STERIS

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Solid revenue and adjusted EPS: STERIS reported ~9% revenue growth year-over-year and adjusted EPS of $2.53 for the quarter, showing continued demand across Healthcare and Applied Sterilization Technologies. GlobeNewswire Q3 Release
• Positive Sentiment: Strong cash flow and maintained outlook: Management kept FY2026 revenue and adjusted EPS guidance (revenue +8–9%; adjusted EPS $10.15–$10.30) and reported improved operating cash flow and free cash flow year-to-date, which supports capital allocation flexibility. GlobeNewswire Q3 Release
• Neutral Sentiment: Guidance is essentially in line with consensus: The FY26 EPS range slightly brackets the street estimate (10.150–10.300 vs. consensus ~10.22), so the outlook is not a clear upside catalyst but preserves expected growth trajectory. Zacks Q3 Coverage
• Negative Sentiment: Margin and tariff concerns: Investors focused on gross-margin contraction and STERIS’s updated tariff estimate—management now expects tariffs to reduce pre-tax profit by roughly $55M (up from prior ~$45M)—which pressures near-term profitability and likely prompted the after-hours sell-off. Zacks Q3 Coverage
• Negative Sentiment: Some outlets flag results vs. expectations: While several releases show revenue/EPS roughly in line or better, at least one market report cited revenue and EPS below certain third‑party estimates, amplifying selling pressure; notable insider sales were also highlighted by data providers. QuiverQuant Q3 Summary

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a “buy (b)” rating on shares of STERIS in a research note on Friday, January 9th. Six research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $275.20.

STERIS Trading Down 9.0%

The company’s 50-day moving average price is $259.17 and its 200 day moving average price is $249.54. The stock has a market cap of $23.61 billion, a PE ratio of 34.39 and a beta of 1.03. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.63 and a current ratio of 2.37.

STERIS (NYSE:STE) last posted its quarterly earnings results on Wednesday, February 4th. The medical equipment provider reported $2.53 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.53. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.48 billion. STERIS had a return on equity of 14.43% and a net margin of 12.07%.STERIS’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter last year, the company earned $2.32 EPS. STERIS has set its FY 2026 guidance at 10.150-10.300 EPS. On average, sell-side analysts forecast that STERIS plc will post 9.08 EPS for the current fiscal year.

STERIS Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 19th. Shareholders of record on Tuesday, February 17th will be given a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, February 17th. STERIS’s dividend payout ratio (DPR) is presently 36.21%.

Insider Buying and Selling

In other news, VP John Adam Zangerle sold 15,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $265.14, for a total value of $3,977,100.00. Following the completion of the sale, the vice president directly owned 33,669 shares of the company’s stock, valued at $8,926,998.66. This trade represents a 30.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Julia Madsen sold 5,008 shares of the firm’s stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $262.00, for a total transaction of $1,312,096.00. Following the completion of the sale, the vice president owned 10,710 shares of the company’s stock, valued at $2,806,020. This trade represents a 31.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 25,044 shares of company stock valued at $6,586,218 over the last ninety days. Corporate insiders own 1.07% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in STERIS by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 12,286,535 shares of the medical equipment provider’s stock worth $3,114,882,000 after buying an additional 73,014 shares during the period. State Street Corp lifted its stake in shares of STERIS by 4.0% in the third quarter. State Street Corp now owns 4,354,839 shares of the medical equipment provider’s stock worth $1,077,564,000 after acquiring an additional 166,736 shares in the last quarter. Geode Capital Management LLC boosted its holdings in STERIS by 1.9% in the second quarter. Geode Capital Management LLC now owns 2,479,108 shares of the medical equipment provider’s stock valued at $592,980,000 after purchasing an additional 46,859 shares during the last quarter. Orbis Allan Gray Ltd increased its holdings in STERIS by 36.0% during the 2nd quarter. Orbis Allan Gray Ltd now owns 2,100,099 shares of the medical equipment provider’s stock worth $504,486,000 after purchasing an additional 556,088 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in shares of STERIS by 16.4% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,567,238 shares of the medical equipment provider’s stock valued at $387,797,000 after buying an additional 221,199 shares during the last quarter. 94.69% of the stock is owned by hedge funds and other institutional investors.

STERIS Company Profile

STERIS Corporation (NYSE: STE) is a global provider of infection prevention, contamination control and procedural products and services for the healthcare, life sciences, pharmaceutical and medical device industries. The company develops, manufactures and supports a broad portfolio of equipment and consumables designed to reduce risk of infection, maintain sterile environments and support critical clinical and manufacturing procedures.

Its offerings include sterilization and decontamination systems, instrument washers and washers-disinfectors, endoscope reprocessing solutions, surgical equipment and procedural disposables, and contamination-control products for cleanrooms and laboratories.