Stericycle, Inc. (NASDAQ:SRCL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.

According to Zacks, “Stericycle’s acquisition binge is leading to higher overheads and integration-related expenses, which are weighing on margins. Furthermore, many acquisitions have lower gross margins and higher selling, general and administrative expenses that often negate the positives. In addition, low barriers to entry in the industry and stiff competition from local as well as global players significantly reduce its price control. High operating costs also continue to be a headwind for Stericycle. Moreover, a challenging macroeconomic environment and volatility in foreign exchange are affecting the profitability. Evolving rules and regulations impose new compliance requirements and further erode margins. Stericycle underperformed the industry year to date. However, Stericycle has a competitive edge with the largest collection and transportation network in the industry, which allows it to compete effectively on both service and price perspectives.”

Several other research firms also recently weighed in on SRCL. BidaskClub downgraded Stericycle from a “sell” rating to a “strong sell” rating in a report on Tuesday, August 1st. Jefferies Group LLC reaffirmed a “buy” rating and issued a $108.00 price objective on shares of Stericycle in a research note on Thursday, July 13th. Barclays PLC reiterated an “overweight” rating and set a $100.00 target price on shares of Stericycle in a report on Wednesday, August 9th. BMO Capital Markets initiated coverage on shares of Stericycle in a report on Thursday, June 29th. They set a “market perform” rating and a $81.00 target price on the stock. Finally, William Blair reissued an “ourperform” rating on shares of Stericycle in a research report on Thursday, September 14th. Four investment analysts have rated the stock with a sell rating, four have given a hold rating and six have issued a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $81.25.

Shares of Stericycle (NASDAQ SRCL) traded down 0.24% during midday trading on Wednesday, reaching $71.65. 193,379 shares of the company’s stock were exchanged. The stock’s 50 day moving average price is $71.31 and its 200 day moving average price is $78.09. The company’s market cap is $6.11 billion. Stericycle has a 12-month low of $68.62 and a 12-month high of $88.00.

Stericycle (NASDAQ:SRCL) last issued its earnings results on Thursday, August 3rd. The business services provider reported $1.15 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.13 by $0.02. Stericycle had a positive return on equity of 14.35% and a negative net margin of 0.07%. The business had revenue of $917.70 million during the quarter, compared to analysts’ expectations of $902.81 million. During the same period in the prior year, the business earned $1.18 EPS. The business’s revenue for the quarter was up 2.9% compared to the same quarter last year. Equities analysts anticipate that Stericycle will post $4.59 earnings per share for the current fiscal year.

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Hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. lifted its position in Stericycle by 3,492.3% during the first quarter. BlackRock Inc. now owns 5,089,580 shares of the business services provider’s stock valued at $421,877,000 after acquiring an additional 4,947,900 shares during the last quarter. Schroder Investment Management Group acquired a new stake in Stericycle in the second quarter valued at approximately $80,497,000. Thompson Siegel & Walmsley LLC acquired a new stake in Stericycle in the second quarter valued at approximately $33,710,000. Morgan Stanley boosted its stake in Stericycle by 110.4% in the first quarter. Morgan Stanley now owns 625,893 shares of the business services provider’s stock valued at $51,881,000 after acquiring an additional 328,431 shares in the last quarter. Finally, Strs Ohio boosted its stake in Stericycle by 26,943.3% in the second quarter. Strs Ohio now owns 328,306 shares of the business services provider’s stock valued at $25,056,000 after acquiring an additional 327,092 shares in the last quarter. Hedge funds and other institutional investors own 93.58% of the company’s stock.

About Stericycle

Stericycle, Inc is a business-to-business services provider. The Company focuses on regulated and compliance solutions for healthcare, retail, and commercial businesses. The Company’s segments include Domestic and Canada Regulated Waste and Compliance Services (RCS), Domestic Communication and Related Services (CRS), International RCS and All other.

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Analyst Recommendations for Stericycle (NASDAQ:SRCL)

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