Stericycle Inc. (SRCL) Cut to Strong Sell at Zacks Investment Research
Stericycle Inc. (NASDAQ:SRCL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Tuesday.
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 equities analysts have also recently weighed in on SRCL. Northcoast Research cut Stericycle from a “buy” rating to a “neutral” rating in a research note on Tuesday. Imperial Capital lowered their price target on Stericycle from $100.00 to $95.00 and set an “in-line” rating for the company in a research note on Thursday, May 26th. Royal Bank Of Canada reissued a “sell” rating on shares of Stericycle in a research note on Thursday, May 26th. Jefferies Group reissued a “buy” rating and issued a $125.00 price target (down previously from $140.00) on shares of Stericycle in a research note on Friday, July 29th. Finally, Wellington Shields cut Stericycle from an “accumulate” rating to a “hold” rating in a research note on Friday, July 29th. Four analysts have rated the stock with a sell rating, ten have issued a hold rating and three have issued a buy rating to the company. The stock currently has an average rating of “Hold” and an average price target of $110.32.
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Stericycle (NASDAQ:SRCL) traded down 0.56% during mid-day trading on Tuesday, hitting $77.56. 953,629 shares of the stock were exchanged. The stock has a market cap of $6.60 billion, a price-to-earnings ratio of 27.30 and a beta of 0.27. The company has a 50 day moving average price of $85.11 and a 200 day moving average price of $102.87. Stericycle has a 52 week low of $77.00 and a 52 week high of $151.57.
Stericycle (NASDAQ:SRCL) last released its earnings results on Thursday, July 28th. The company reported $1.18 earnings per share for the quarter, meeting the Thomson Reuters’ 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 in the previous year, the business posted $1.14 EPS. The business’s revenue for the quarter was up 24.6% on a year-over-year basis. Analysts expect that Stericycle will post $4.67 EPS for the current fiscal year.
In related news, EVP John P. Schetz sold 1,398 shares of the company’s stock in a transaction 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 transaction, the executive vice president now directly owns 1,088 shares in the company, valued at $89,052.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Rodney F. Dammeyer sold 10,188 shares of the company’s stock in a transaction on Wednesday, August 17th. The shares were sold at an average price of $85.50, for a total value of $871,074.00. Following the completion of the transaction, the director now owns 10,188 shares of the company’s stock, valued at $871,074. The disclosure for this sale can be found here. 3.30% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new position in shares of Stericycle during the fourth quarter worth approximately $76,432,000. Chevy Chase Trust Holdings Inc. raised its position in shares of Stericycle by 5.2% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 74,656 shares of the company’s stock worth $9,421,000 after buying an additional 3,659 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its position in shares of Stericycle by 15.6% in the first quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 16,521 shares of the company’s stock worth $2,085,000 after buying an additional 2,227 shares during the last quarter. Exxonmobil Investment Management Inc. TX raised its position in shares of Stericycle by 8.6% in the first quarter. Exxonmobil Investment Management Inc. TX now owns 20,692 shares of the company’s stock worth $2,611,000 after buying an additional 1,643 shares during the last quarter. Finally, GW&K Investment Management LLC raised its position in shares of Stericycle by 26.1% in the first quarter. GW&K Investment Management LLC now owns 74,373 shares of the company’s stock worth $9,385,000 after buying an additional 15,402 shares during the last quarter. Institutional investors and hedge funds own 92.81% of the company’s stock.
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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