STERIS (NYSE:STE) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of STERIS (NYSE:STE) from a hold rating to a buy rating in a report released on Sunday morning.

Several other research firms have also weighed in on STE. Piper Sandler reiterated an “overweight” rating and set a $275.00 target price (up from $270.00) on shares of STERIS in a report on Friday. KeyCorp lowered their price target on STERIS from $291.00 to $269.00 and set an “overweight” rating for the company in a report on Wednesday, May 13th. UBS Group dropped their price target on STERIS from $275.00 to $270.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Weiss Ratings cut STERIS from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, STERIS currently has an average rating of “Moderate Buy” and a consensus price target of $271.33.

STERIS Trading Up 0.1%

STE opened at $237.70 on Friday. The firm’s fifty day moving average is $214.86 and its two-hundred day moving average is $225.18. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.35 and a current ratio of 1.91. The firm has a market cap of $23.17 billion, a PE ratio of 29.06 and a beta of 0.91. STERIS has a twelve month low of $195.14 and a twelve month high of $269.44.

STERIS (NYSE:STE) last announced its quarterly earnings results on Wednesday, August 5th. The medical equipment provider reported $2.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.49 by $0.10. STERIS had a net margin of 13.34% and a return on equity of 14.34%. The company had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.49 billion. During the same quarter in the previous year, the business earned $2.34 EPS. The firm’s revenue was up 7.3% on a year-over-year basis. STERIS has set its FY 2027 guidance at 11.000-11.300 EPS. Equities research analysts anticipate that STERIS will post 11.17 EPS for the current year.

STERIS Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be given a $0.69 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $2.76 dividend on an annualized basis and a yield of 1.2%. This is a boost from STERIS’s previous quarterly dividend of $0.63. STERIS’s payout ratio is 30.81%.

Insider Activity at STERIS

In other STERIS news, Director Richard C. Breeden sold 1,481 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $209.51, for a total value of $310,284.31. Following the sale, the director owned 38,964 shares in the company, valued at approximately $8,163,347.64. The trade was a 3.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP John Adam Zangerle sold 1,419 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $209.28, for a total value of $296,968.32. Following the transaction, the vice president directly owned 35,259 shares of the company’s stock, valued at approximately $7,379,003.52. This trade represents a 3.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 7,328 shares of company stock valued at $1,554,051. 1.12% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. boosted its position in STERIS by 40.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 633,530 shares of the medical equipment provider’s stock valued at $160,613,000 after purchasing an additional 183,680 shares during the last quarter. Kornitzer Capital Management Inc. KS bought a new position in STERIS in the first quarter valued at approximately $5,506,000. Cerity Partners LLC increased its position in shares of STERIS by 116.7% during the 4th quarter. Cerity Partners LLC now owns 209,923 shares of the medical equipment provider’s stock worth $53,220,000 after purchasing an additional 113,070 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in shares of STERIS by 45.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 430,639 shares of the medical equipment provider’s stock worth $109,176,000 after purchasing an additional 134,990 shares during the last quarter. Finally, Eventide Asset Management LLC raised its stake in shares of STERIS by 8.8% during the 4th quarter. Eventide Asset Management LLC now owns 190,483 shares of the medical equipment provider’s stock worth $48,326,000 after purchasing an additional 15,416 shares in the last quarter. Institutional investors own 94.69% of the company’s stock.

Key Stories Impacting STERIS

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Piper Sandler raised its price target to $275 from $270 while reaffirming an “overweight” rating. The revised target implies roughly 16% potential upside from the referenced share price, signaling continued confidence in STERIS’s earnings growth and medical-equipment demand. Benzinga analyst rating report
• Positive Sentiment: Fiscal first-quarter adjusted EPS came in at $2.59, ahead of the approximately $2.49 consensus estimate, while revenue rose 7.3% year over year to $1.49 billion. Growth was broad-based: Healthcare revenue increased 8%, Applied Sterilization Technologies rose 6% and Life Sciences advanced 9%. STERIS fiscal 2027 first-quarter results
• Positive Sentiment: STERIS plans to invest approximately $600 million in a North Carolina manufacturing hub expected to create about 335 jobs. The project should expand production capacity and support the company’s formulated-chemistries business over the longer term. STERIS North Carolina manufacturing investment
• Neutral Sentiment: Fiscal 2027 guidance was maintained broadly in line with expectations. Adjusted EPS is projected at approximately $11.00–$11.30 and revenue at about $6.4 billion, consistent with expected 7%–8% revenue growth. The company increased capital-expenditure guidance to roughly $450 million and expects free cash flow of about $800 million.
• Negative Sentiment: Revenue was described as modestly below some estimates despite the earnings beat, and operating cash flow declined year over year. STERIS also expects $55 million–$70 million in pretax restructuring charges tied to the North Carolina center, creating near-term cost and execution risks. STERIS earnings analysis

About STERIS

STERIS Corporation (NYSE: STE) is a global provider of infection prevention, contamination control and procedural products and services for the healthcare, life sciences, pharmaceutical and medical device industries. The company develops, manufactures and supports a broad portfolio of equipment and consumables designed to reduce risk of infection, maintain sterile environments and support critical clinical and manufacturing procedures.

Its offerings include sterilization and decontamination systems, instrument washers and washers-disinfectors, endoscope reprocessing solutions, surgical equipment and procedural disposables, and contamination-control products for cleanrooms and laboratories.