Zacks Investment Research Lowers Stericycle Inc. (SRCL) to Strong Sell
Stericycle Inc. (NASDAQ:SRCL) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors 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.”
Several other analysts have also issued reports on SRCL. Wedbush dropped their target price on shares of Stericycle from $95.00 to $85.00 and set a “neutral” rating on the stock in a research report on Thursday, September 22nd. Robert W. Baird dropped their target price on shares of Stericycle from $99.00 to $85.00 and set a “neutral” rating on the stock in a research report on Friday, September 23rd. Northcoast Research lowered shares of Stericycle from a “buy” rating to a “neutral” rating in a research report on Tuesday, September 20th. Jefferies Group reiterated a “buy” rating and issued a $125.00 target price (down previously from $140.00) on shares of Stericycle in a research report on Friday, July 29th. Finally, Barrington Research reiterated an “outperform” rating and issued a $88.00 target price (down previously from $100.00) on shares of Stericycle in a research report on Wednesday. Four equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $103.54.
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Shares of Stericycle (NASDAQ:SRCL) traded down 1.02% during mid-day trading on Friday, reaching $75.62. 85,354 shares of the company’s stock traded hands. The company has a market cap of $6.43 billion, a P/E ratio of 26.62 and a beta of 0.20. The company’s 50 day moving average is $81.84 and its 200 day moving average is $99.57. Stericycle has a 12-month low of $75.31 and a 12-month high of $151.57.
Stericycle (NASDAQ:SRCL) last announced its earnings results on Thursday, July 28th. The company reported $1.18 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $1.18. Stericycle had a net margin of 7.22% and a return on equity of 14.84%. The business had revenue of $891.60 million for the quarter, compared to analyst estimates of $910.29 million. During the same quarter last year, the business earned $1.14 earnings per share. The company’s revenue for the quarter was up 24.6% compared to the same quarter last year. On average, analysts predict that Stericycle will post $4.67 EPS for the current fiscal year.
In other Stericycle news, Director Rodney F. Dammeyer sold 10,188 shares of Stericycle stock in a transaction dated Wednesday, August 17th. The shares were sold at an average price of $85.50, for a total transaction of $871,074.00. Following the completion of the sale, the director now directly owns 10,188 shares in the company, valued at $871,074. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP John P. Schetz sold 1,398 shares of Stericycle stock in a transaction dated Wednesday, September 14th. The shares were sold at an average price of $81.85, for a total transaction of $114,426.30. Following the sale, the executive vice president now owns 1,088 shares of the company’s stock, valued at $89,052.80. The disclosure for this sale can be found here. Company insiders own 3.30% of the company’s stock.
Several large investors have recently made changes to their positions in SRCL. Independent Portfolio Consultants Inc. boosted its stake in shares of Stericycle by 4.1% in the third quarter. Independent Portfolio Consultants Inc. now owns 10,485 shares of the company’s stock worth $840,000 after buying an additional 412 shares in the last quarter. Fulton Bank N.A. boosted its stake in shares of Stericycle by 12.5% in the third quarter. Fulton Bank N.A. now owns 4,945 shares of the company’s stock worth $396,000 after buying an additional 550 shares in the last quarter. BNP Paribas Arbitrage SA boosted its stake in shares of Stericycle by 446.7% in the third quarter. BNP Paribas Arbitrage SA now owns 36,426 shares of the company’s stock worth $2,919,000 after buying an additional 29,763 shares in the last quarter. Eqis Capital Management Inc. boosted its stake in shares of Stericycle by 39.0% in the third quarter. Eqis Capital Management Inc. now owns 9,245 shares of the company’s stock worth $741,000 after buying an additional 2,595 shares in the last quarter. Finally, Macquarie Group Ltd. boosted its stake in shares of Stericycle by 62.5% in the second quarter. Macquarie Group Ltd. now owns 43,150 shares of the company’s stock worth $4,492,000 after buying an additional 16,600 shares in the last quarter. Institutional investors and hedge funds own 92.80% 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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