Stericycle Inc. (NASDAQ:SRCL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued 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 analysts also recently issued reports on the stock. Northcoast Research downgraded shares of Stericycle from a “buy” rating to a “neutral” rating in a research report on Tuesday. RBC Capital Markets reissued an “underperform” rating and issued a $77.00 price target (down previously from $89.00) on shares of Stericycle in a research report on Monday. Royal Bank Of Canada reduced their price target on shares of Stericycle from $89.00 to $77.00 and set an “underperform” rating for the company in a research report on Monday. Imperial Capital reduced their price target on shares of Stericycle from $93.50 to $80.00 and set an “underperform” rating for the company in a research report on Friday, September 9th. Finally, Jefferies Group reissued a “buy” rating and issued a $112.50 price target (down previously from $125.00) on shares of Stericycle in a research report on Wednesday, September 7th. Four investment analysts have rated the stock with a sell rating, ten have issued a hold rating and three have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus price target of $110.32.

Analyst Recommendations for Stericycle (NASDAQ:SRCL)

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Stericycle (NASDAQ:SRCL) traded down 0.67% during trading on Tuesday, hitting $77.48. 966,250 shares of the company’s stock traded hands. The company has a market cap of $6.59 billion, a PE ratio of 27.27 and a beta of 0.27. Stericycle has a 52-week low of $77.00 and a 52-week high of $151.57. The company’s 50 day moving average price is $85.11 and its 200 day moving average price is $102.87.

Stericycle (NASDAQ:SRCL) last announced its quarterly earnings data on Thursday, July 28th. The company reported $1.18 EPS for the quarter, hitting the consensus estimate of $1.18. The company earned $891.60 million during the quarter, compared to the consensus estimate of $910.29 million. Stericycle had a net margin of 7.22% and a return on equity of 14.84%. The company’s quarterly revenue was up 24.6% on a year-over-year basis. During the same quarter last year, the firm posted $1.14 EPS. Analysts expect that Stericycle will post $4.67 earnings per share for the current year.

In related news, EVP John P. Schetz sold 1,398 shares of the business’s stock in a transaction dated Wednesday, September 14th. The stock was sold at an average price of $81.85, for a total value of $114,426.30. Following the sale, the executive vice president now directly owns 1,088 shares in the company, valued at approximately $89,052.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Rodney F. Dammeyer sold 10,188 shares of the business’s stock in a transaction dated 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 sale, the director now owns 10,188 shares in the company, valued at $871,074. 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 made changes to their positions in SRCL. Norges Bank purchased a new stake in shares of Stericycle during the fourth quarter worth about $76,432,000. Chevy Chase Trust Holdings Inc. boosted its stake 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 in the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its stake 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 in the last quarter. Exxonmobil Investment Management Inc. TX boosted its stake 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 in the last quarter. Finally, GW&K Investment Management LLC boosted its stake 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 in the last quarter. Institutional investors and hedge funds own 92.81% 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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