Service Co. International (SCI) to Repurchase $298.00 million in Outstanding Shares

Service Co. International (NYSE:SCI) announced that its board has authorized a share repurchase plan, which allows the company to repurchase $298.00 million in shares on Tuesday, February 13th, EventVestor reports. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Service Co. International (SCI) traded up $0.95 during midday trading on Thursday, hitting $38.57. 326,067 shares of the company’s stock were exchanged, compared to its average volume of 1,345,427. The company has a market capitalization of $7,058.25, a PE ratio of 13.56, a PEG ratio of 1.96 and a beta of 0.95. Service Co. International has a 12-month low of $30.02 and a 12-month high of $40.28. The company has a current ratio of 0.70, a quick ratio of 0.65 and a debt-to-equity ratio of 2.66.

Service Co. International (NYSE:SCI) last posted its earnings results on Tuesday, February 13th. The company reported $0.50 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.05. The firm had revenue of $812.73 million for the quarter, compared to analysts’ expectations of $823.66 million. Service Co. International had a net margin of 17.66% and a return on equity of 24.66%. During the same quarter in the previous year, the firm posted $0.47 earnings per share. analysts expect that Service Co. International will post 1.66 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, March 30th. Shareholders of record on Thursday, March 15th will be paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.76%. The ex-dividend date of this dividend is Wednesday, March 14th. This is a boost from Service Co. International’s previous quarterly dividend of $0.15. Service Co. International’s payout ratio is presently 21.05%.

A number of equities research analysts have recently weighed in on SCI shares. Zacks Investment Research downgraded shares of Service Co. International from a “hold” rating to a “sell” rating in a research report on Wednesday, October 18th. Credit Suisse Group reiterated an “outperform” rating and issued a $40.00 price target (up from $38.00) on shares of Service Co. International in a research report on Friday, November 3rd. Off Wall Street assumed coverage on shares of Service Co. International in a research report on Friday, December 15th. They issued a “sell” rating for the company. Oppenheimer reissued a “buy” rating and issued a $42.00 price objective on shares of Service Co. International in a research note on Thursday, January 18th. Finally, Deutsche Bank lifted their price objective on shares of Service Co. International from $40.00 to $42.00 and gave the company a “buy” rating in a research note on Thursday. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, three have given a buy rating and one has given a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus target price of $42.50.

In other news, insider R L. Waltrip sold 84,679 shares of Service Co. International stock in a transaction on Monday, December 11th. The shares were sold at an average price of $37.90, for a total transaction of $3,209,334.10. Following the transaction, the insider now owns 765,762 shares in the company, valued at $29,022,379.80. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Elisabeth G. Nash sold 47,000 shares of Service Co. International stock in a transaction on Monday, November 27th. The stock was sold at an average price of $35.64, for a total transaction of $1,675,080.00. Following the transaction, the vice president now owns 164,441 shares in the company, valued at approximately $5,860,677.24. The disclosure for this sale can be found here. 6.20% of the stock is currently owned by insiders.

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Service Co. 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 include Funeral, Cemetery and Corporate. It conducts both funeral and cemetery operations in the United States and Canada. As December 31, 2016, it operated 1,502 funeral service locations and 470 cemeteries, including 281 funeral service/cemetery combination locations, which are geographically diversified across 45 states, eight Canadian provinces, the District of Columbia, and Puerto Rico.

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