Stericycle Inc. (SRCL) Downgraded by Zacks Investment Research to “Strong Sell”
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. Stericycle also lowered its earnings guidance for 2016 due to macroeconomic challenges. In the past, the company was forced to reduce prices for LQ customers due to competitive pressures, which could be repeated in the future. This forces us to be bearish on the stock to some extent. However, Stericycle’s network is the largest in the industry and provides it with routing efficiencies for its vehicles from the customer sites to the collection and processing facilities. This network is difficult to replicate and allow Stericycle to compete effectively.”
SRCL has been the topic of several other reports. Macquarie began coverage on Stericycle in a research report on Thursday, August 25th. They issued a neutral rating and a $96.00 price target on the stock. Jefferies Group reaffirmed a buy rating and issued a $112.50 price target (down from $125.00) on shares of Stericycle in a research report on Wednesday, September 7th. Imperial Capital downgraded Stericycle from an in-line rating to an underperform rating and dropped their price target for the stock from $100.00 to $93.50 in a research report on Friday, July 29th. Wellington Shields downgraded Stericycle from an accumulate rating to a hold rating in a research report on Friday, July 29th. Finally, Royal Bank Of Canada reaffirmed a sell rating on shares of Stericycle in a research report on Thursday, May 26th. Four analysts have rated the stock with a sell rating, ten have given a hold rating and three have issued a buy rating to the company. Stericycle currently has a consensus rating of Hold and an average price target of $110.32.
Stericycle (NASDAQ:SRCL) opened at 77.01 on Tuesday. The stock’s 50 day moving average price is $84.76 and its 200-day moving average price is $102.60. The firm has a market capitalization of $6.55 billion, a price-to-earnings ratio of 27.11 and a beta of 0.27. Stericycle has a one year low of $76.76 and a one year high of $151.57.
Stericycle (NASDAQ:SRCL) last issued its quarterly earnings results on Thursday, July 28th. The company reported $1.18 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $1.18. The company had revenue of $891.60 million for the quarter, compared to the consensus estimate of $910.29 million. Stericycle had a return on equity of 14.84% and a net margin of 7.22%. The company’s revenue for the quarter was up 24.6% on a year-over-year basis. During the same period in the previous year, the business posted $1.14 EPS. On average, equities research analysts anticipate that Stericycle will post $4.67 earnings per share for the current fiscal year.
In other news, Director Mark C. Miller sold 24,665 shares of the business’s stock in a transaction on Friday, July 1st. The stock was sold at an average price of $104.55, for a total transaction of $2,578,725.75. Following the completion of the sale, the director now owns 229,449 shares in the company, valued at $23,988,892.95. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP John P. Schetz sold 1,398 shares of the business’s stock in a transaction on Wednesday, September 14th. The stock was sold at an average price of $81.85, for a total value of $114,426.30. Following the sale, the executive vice president now owns 1,088 shares of the company’s stock, valued at approximately $89,052.80. The disclosure for this sale can be found here. 3.30% of the stock is owned by company insiders.
Several large investors have recently added to or reduced their stakes in the company. Addenda Capital Inc. increased its stake in Stericycle by 182.2% in the first quarter. Addenda Capital Inc. now owns 13,587 shares of the company’s stock worth $1,714,000 after buying an additional 8,773 shares during the last quarter. Torray LLC increased its stake in Stericycle by 53.6% in the first quarter. Torray LLC now owns 420,707 shares of the company’s stock worth $53,089,000 after buying an additional 146,805 shares during the last quarter. Badgley Phelps & Bell Inc. increased its stake in Stericycle by 5.6% in the first quarter. Badgley Phelps & Bell Inc. now owns 59,172 shares of the company’s stock worth $7,467,000 after buying an additional 3,144 shares during the last quarter. Dynamic Advisors Solutions LLC increased its stake in Stericycle by 1.7% in the first quarter. Dynamic Advisors Solutions LLC now owns 5,122 shares of the company’s stock worth $646,000 after buying an additional 85 shares during the last quarter. Finally, Virginia Retirement System purchased a new stake in Stericycle during the first quarter worth $2,572,000. Institutional investors 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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