Zacks Investment Research Downgrades Service Corp. International (SCI) to Sell
Service Corp. International (NYSE:SCI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Service Corp. is the largest provider of funeral and cemetery services in the world. The funeral and cemetery operations consist of the Company’s funeral service locations, cemeteries and related businesses. The financial services operations represent a combination of the Company’s insurance operations primarily related to the funding of prearranged funeral contracts and a lending subsidiary, which previously provided capital financing for independent funeral home and cemetery operations. “
SCI has been the subject of a number of other research reports. Bank of America Corp. began coverage on Service Corp. International in a research report on Friday, September 30th. They set a “buy” rating and a $32.00 price target for the company. Oppenheimer Holdings Inc. upped their price target on Service Corp. International from $29.00 to $32.00 and gave the stock an “outperform” rating in a research report on Thursday, July 28th. Finally, Wells Fargo & Co. began coverage on Service Corp. International in a research report on Tuesday, August 2nd. They set a “market perform” rating for the company.
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Shares of Service Corp. International (NYSE:SCI) opened at 26.50 on Tuesday. The stock has a 50 day moving average of $26.46 and a 200 day moving average of $26.71. The firm has a market cap of $5.13 billion, a P/E ratio of 28.90 and a beta of 0.81. Service Corp. International has a 52 week low of $20.21 and a 52 week high of $29.68.
Service Corp. International (NYSE:SCI) last released its quarterly earnings results on Wednesday, July 27th. The company reported $0.28 earnings per share for the quarter, missing analysts’ consensus estimates of $0.29 by $0.01. Service Corp. International had a return on equity of 19.48% and a net margin of 6.13%. The firm had revenue of $751.70 million for the quarter, compared to analyst estimates of $766.81 million. During the same period last year, the company earned $0.28 EPS. The company’s revenue was down .4% compared to the same quarter last year. Equities analysts forecast that Service Corp. International will post $1.24 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Friday, September 30th. Stockholders of record on Thursday, September 15th were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.96%. The ex-dividend date of this dividend was Tuesday, September 13th. Service Corp. International’s dividend payout ratio is currently 57.14%.
In other news, CEO Thomas L. Ryan sold 208,444 shares of the company’s stock in a transaction that occurred on Monday, August 8th. The stock was sold at an average price of $27.05, for a total transaction of $5,638,410.20. Following the sale, the chief executive officer now owns 1,283,553 shares in the company, valued at approximately $34,720,108.65. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director W Blair Waltrip sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 9th. The stock was sold at an average price of $27.07, for a total value of $135,350.00. Following the sale, the director now owns 701,409 shares in the company, valued at approximately $18,987,141.63. The disclosure for this sale can be found here. Insiders own 6.00% of the company’s stock.
Large investors have recently made changes to their positions in the company. Fuller & Thaler Asset Management Inc. bought a new stake in shares of Service Corp. International during the second quarter worth about $124,000. Wedbush Securities Inc. bought a new stake in shares of Service Corp. International during the second quarter worth about $202,000. Nomura Holdings Inc. bought a new stake in shares of Service Corp. International during the second quarter worth about $205,000. Wright Investors Service Inc. bought a new stake in shares of Service Corp. International during the second quarter worth about $233,000. Finally, Cubist Systematic Strategies LLC bought a new stake in shares of Service Corp. International during the second quarter worth about $275,000. Institutional investors own 83.22% of the company’s stock.
Service Corp. International Company Profile
Service Corporation International is a provider of deathcare products and services, with a network of funeral service locations and cemeteries. The Company’s segments are funeral and cemetery operations. The Company conducts both funeral and cemetery operations in the United States and Canada. It operates over 1,535 funeral service locations and over 470 cemeteries, which are diversified across over 45 states, over eight Canadian provinces, the District of Columbia, and Puerto Rico.
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