STERIS (NYSE:STE) Shares Gap Down – Should You Sell?

Shares of STERIS plc (NYSE:STE) gapped down before the market opened on Thursday . The stock had previously closed at $264.27, but opened at $240.19. STERIS shares last traded at $242.8360, with a volume of 436,522 shares trading hands.

Key Stories Impacting STERIS

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Solid revenue and adjusted EPS: STERIS reported ~9% revenue growth year-over-year and adjusted EPS of $2.53 for the quarter, showing continued demand across Healthcare and Applied Sterilization Technologies. GlobeNewswire Q3 Release
• Positive Sentiment: Strong cash flow and maintained outlook: Management kept FY2026 revenue and adjusted EPS guidance (revenue +8–9%; adjusted EPS $10.15–$10.30) and reported improved operating cash flow and free cash flow year-to-date, which supports capital allocation flexibility. GlobeNewswire Q3 Release
• Neutral Sentiment: Guidance is essentially in line with consensus: The FY26 EPS range slightly brackets the street estimate (10.150–10.300 vs. consensus ~10.22), so the outlook is not a clear upside catalyst but preserves expected growth trajectory. Zacks Q3 Coverage
• Negative Sentiment: Margin and tariff concerns: Investors focused on gross-margin contraction and STERIS’s updated tariff estimate—management now expects tariffs to reduce pre-tax profit by roughly $55M (up from prior ~$45M)—which pressures near-term profitability and likely prompted the after-hours sell-off. Zacks Q3 Coverage
• Negative Sentiment: Some outlets flag results vs. expectations: While several releases show revenue/EPS roughly in line or better, at least one market report cited revenue and EPS below certain third‑party estimates, amplifying selling pressure; notable insider sales were also highlighted by data providers. QuiverQuant Q3 Summary

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a “buy (b)” rating on shares of STERIS in a report on Friday, January 9th. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $275.20.

STERIS Stock Down 9.0%

The firm has a market capitalization of $23.61 billion, a PE ratio of 34.39 and a beta of 1.03. The company’s 50 day simple moving average is $259.17 and its 200-day simple moving average is $249.54. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.63 and a current ratio of 2.37.

STERIS (NYSE:STE) last announced its earnings results on Wednesday, February 4th. The medical equipment provider reported $2.53 earnings per share (EPS) for the quarter, meeting the consensus estimate of $2.53. The business had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.48 billion. STERIS had a net margin of 12.07% and a return on equity of 14.43%. STERIS’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the previous year, the business posted $2.32 earnings per share. STERIS has set its FY 2026 guidance at 10.150-10.300 EPS. On average, analysts forecast that STERIS plc will post 9.08 EPS for the current fiscal year.

STERIS Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 19th. Shareholders of record on Tuesday, February 17th will be given a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Tuesday, February 17th. STERIS’s dividend payout ratio (DPR) is presently 36.21%.

Insider Transactions at STERIS

In other STERIS news, VP Julia Madsen sold 5,008 shares of the company’s stock in a transaction dated Friday, November 21st. The shares were sold at an average price of $262.00, for a total transaction of $1,312,096.00. Following the completion of the sale, the vice president directly owned 10,710 shares in the company, valued at $2,806,020. This represents a 31.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Renato Tamaro sold 5,036 shares of STERIS stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $257.55, for a total value of $1,297,021.80. Following the completion of the transaction, the vice president owned 5,695 shares in the company, valued at approximately $1,466,747.25. This represents a 46.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 25,044 shares of company stock worth $6,586,218. 1.07% of the stock is currently owned by insiders.

Hedge Funds Weigh In On STERIS

A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in shares of STERIS by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 12,286,535 shares of the medical equipment provider’s stock worth $3,114,882,000 after buying an additional 73,014 shares during the period. State Street Corp grew its position in shares of STERIS by 4.0% in the 3rd quarter. State Street Corp now owns 4,354,839 shares of the medical equipment provider’s stock worth $1,077,564,000 after buying an additional 166,736 shares during the last quarter. Geode Capital Management LLC increased its position in STERIS by 1.9% during the 2nd quarter. Geode Capital Management LLC now owns 2,479,108 shares of the medical equipment provider’s stock valued at $592,980,000 after purchasing an additional 46,859 shares during the period. Orbis Allan Gray Ltd lifted its position in shares of STERIS by 36.0% in the 2nd quarter. Orbis Allan Gray Ltd now owns 2,100,099 shares of the medical equipment provider’s stock worth $504,486,000 after purchasing an additional 556,088 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of STERIS by 16.4% during the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,567,238 shares of the medical equipment provider’s stock valued at $387,797,000 after buying an additional 221,199 shares during the period. 94.69% of the stock is owned by hedge funds and other institutional investors.

STERIS Company Profile

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.