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 research note issued on Friday.
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 that alter its current method of doing business and ultimately increase costs and compress margins further. Stericycle also lowered its earnings guidance for 2016 due to macroeconomic challenges and unfavorable foreign exchange rates. Per its latest outlook, earnings are expected in the range of $4.68 to $4.75 per share, significantly down from $4.90 to $5.05 per share expected earlier. However, international growth rates are expected to accelerate due to increasing customer adoption of multiple services and expansion into new lines of business.”
SRCL has been the topic of several other reports. Macquarie began coverage on shares of Stericycle in a report on Thursday, August 25th. They issued a “neutral” rating and a $96.00 price objective on the stock. Jefferies Group reiterated a “buy” rating and set a $112.50 price target (down from $125.00) on shares of Stericycle in a research note on Wednesday, September 7th. Imperial Capital lowered shares of Stericycle from an “in-line” rating to an “underperform” rating and cut their price target for the stock from $100.00 to $93.50 in a research note on Friday, July 29th. Wellington Shields lowered shares of Stericycle from an “accumulate” rating to a “hold” rating in a research note on Friday, July 29th. Finally, Wedbush cut their price target on shares of Stericycle from $95.00 to $85.00 and set a “neutral” rating on the stock in a research note on Thursday, September 22nd. Four investment analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $103.54.
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Stericycle (NASDAQ:SRCL) traded down 1.07% during mid-day trading on Friday, reaching $75.58. 173,442 shares of the company were exchanged. Stericycle has a 1-year low of $75.31 and a 1-year high of $151.57. The firm has a market capitalization of $6.43 billion, a P/E ratio of 26.60 and a beta of 0.20. The stock has a 50-day moving average of $81.84 and a 200 day moving average of $99.57.
Stericycle (NASDAQ:SRCL) last issued its quarterly earnings data on Thursday, July 28th. The company reported $1.18 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.18. The firm had revenue of $891.60 million for the quarter, compared to analyst estimates of $910.29 million. Stericycle had a net margin of 7.22% and a return on equity of 14.84%. Stericycle’s revenue was up 24.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.14 EPS. Equities research analysts forecast that Stericycle will post $4.67 earnings per share for the current year.
In related news, Director Rodney F. Dammeyer sold 10,188 shares of the company’s 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 transaction, the director now directly owns 10,188 shares of the company’s stock, valued at $871,074. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP John P. Schetz sold 1,398 shares of the company’s stock in a transaction that occurred on Wednesday, September 14th. The shares were 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 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 institutional investors have recently made changes to their positions in the stock. Prudential Financial Inc. increased its position in shares of Stericycle by 3.0% in the first quarter. Prudential Financial Inc. now owns 109,323 shares of the company’s stock worth $13,795,000 after buying an additional 3,225 shares during the period. BlackRock Group LTD increased its stake in Stericycle by 12.4% in the first quarter. BlackRock Group LTD now owns 878,113 shares of the company’s stock valued at $110,810,000 after buying an additional 96,910 shares during the last quarter. BlackRock Fund Advisors increased its stake in Stericycle by 6.4% in the first quarter. BlackRock Fund Advisors now owns 1,707,528 shares of the company’s stock valued at $215,473,000 after buying an additional 103,024 shares during the last quarter. BlackRock Institutional Trust Company N.A. increased its stake in Stericycle by 0.8% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 2,289,722 shares of the company’s stock valued at $288,940,000 after buying an additional 19,063 shares during the last quarter. Finally, C M Bidwell & Associates Ltd. purchased a new stake in Stericycle during the first quarter valued at $300,000. 92.80% of the stock is owned by hedge funds and other institutional investors.
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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