Zacks Investment Research lowered shares of Stericycle, Inc. (NASDAQ:SRCL) from a hold rating to a sell rating in a report released on Wednesday morning.

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.”

A number of other research firms have also issued reports on SRCL. BMO Capital Markets assumed coverage on Stericycle in a report on Thursday, June 29th. They issued a market perform rating and a $81.00 target price for the company. BidaskClub downgraded shares of Stericycle from a sell rating to a strong sell rating in a research note on Tuesday, August 1st. Barclays PLC reaffirmed an overweight rating and issued a $100.00 price target on shares of Stericycle in a research note on Wednesday, August 9th. Jefferies Group LLC set a $108.00 price target on shares of Stericycle and gave the stock a buy rating in a research note on Thursday, August 3rd. Finally, William Blair reaffirmed an ourperform rating on shares of Stericycle in a research note on Thursday, September 14th. Four research 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 company currently has a consensus rating of Hold and a consensus target price of $81.25.

Shares of Stericycle (NASDAQ SRCL) traded up 0.22% during midday trading on Wednesday, hitting $71.64. The stock had a trading volume of 585,592 shares. Stericycle has a 12-month low of $68.62 and a 12-month high of $88.00. The firm’s market cap is $6.11 billion. The company’s 50-day moving average price is $71.29 and its 200-day moving average price is $78.04.

Stericycle (NASDAQ:SRCL) last released its earnings results on Thursday, August 3rd. The business services provider reported $1.15 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.13 by $0.02. The company had revenue of $917.70 million during the quarter, compared to analyst estimates of $902.81 million. Stericycle had a positive return on equity of 14.35% and a negative net margin of 0.07%. The company’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.18 earnings per share. Equities research analysts forecast that Stericycle will post $4.59 EPS for the current year.

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A number of institutional investors have recently bought and sold shares of SRCL. BlackRock Inc. increased 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 worth $421,877,000 after buying an additional 4,947,900 shares during the last quarter. Schroder Investment Management Group acquired a new position in Stericycle during the second quarter worth $80,497,000. Thompson Siegel & Walmsley LLC acquired a new position in Stericycle during the second quarter worth $33,710,000. Morgan Stanley increased its position in Stericycle by 110.4% during the first quarter. Morgan Stanley now owns 625,893 shares of the business services provider’s stock worth $51,881,000 after buying an additional 328,431 shares during the last quarter. Finally, Strs Ohio increased its position in Stericycle by 26,943.3% during the second quarter. Strs Ohio now owns 328,306 shares of the business services provider’s stock worth $25,056,000 after buying an additional 327,092 shares during the last quarter. 93.58% of the stock is currently owned by hedge funds and other institutional investors.

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.

Analyst Recommendations for Stericycle (NASDAQ:SRCL)

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