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

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 that alter its current method of doing business and ultimately increase costs and compress margins further. Stericycle also lowered its earnings guidance for 2016 due to macroeconomic challenges and unfavorable foreign exchange rates. Per its latest outlook, earnings are expected in the range of $4.68 to $4.75 per share, significantly down from $4.90 to $5.05 per share expected earlier. However, international growth rates are expected to accelerate due to increasing customer adoption of multiple services and expansion into new lines of business.”

Several other analysts have also recently commented on SRCL. Imperial Capital cut Stericycle from an in-line rating to an underperform rating and decreased their target price for the stock from $100.00 to $93.50 in a report on Friday, July 29th. Jefferies Group restated a buy rating and set a $125.00 target price (down previously from $140.00) on shares of Stericycle in a report on Friday, July 29th. Wellington Shields cut Stericycle from an accumulate rating to a hold rating in a report on Friday, July 29th. Macquarie started coverage on Stericycle in a report on Thursday, August 25th. They set a neutral rating and a $96.00 target price on the stock. Finally, RBC Capital Markets restated an underperform rating and set a $77.00 target price (down previously from $89.00) on shares of Stericycle in a report on Monday, September 19th. Four research analysts have rated the stock with a sell rating, ten have issued a hold rating and three have issued a buy rating to the company’s stock. Stericycle presently has a consensus rating of Hold and a consensus price target of $103.54.

Stericycle (NASDAQ:SRCL) traded up 1.64% during mid-day trading on Friday, reaching $76.33. The company’s stock had a trading volume of 337,563 shares. The company has a market cap of $6.49 billion, a price-to-earnings ratio of 26.87 and a beta of 0.21. The stock’s 50 day moving average is $81.55 and its 200 day moving average is $99.23. Stericycle has a 12 month low of $74.95 and a 12 month high of $151.57.

Stericycle (NASDAQ:SRCL) last announced its quarterly earnings results on Thursday, July 28th. The company reported $1.18 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.18. Stericycle had a return on equity of 14.84% and a net margin of 7.22%. The firm had revenue of $891.60 million for the quarter, compared to analysts’ expectations of $910.29 million. During the same period in the prior year, the business posted $1.14 earnings per share. The business’s revenue was up 24.6% compared to the same quarter last year. Equities research analysts predict that Stericycle will post $4.67 EPS for the current year.

In related news, EVP John P. Schetz sold 1,398 shares of the stock in a transaction dated Wednesday, September 14th. The stock was sold at an average price of $81.85, for a total transaction of $114,426.30. Following the completion of the transaction, the executive vice president now directly owns 1,088 shares in the company, valued at $89,052.80. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Rodney F. Dammeyer sold 10,188 shares of the stock in a transaction dated Wednesday, August 17th. The stock was sold at an average price of $85.50, for a total value of $871,074.00. Following the transaction, the director now owns 10,188 shares of the company’s stock, valued at $871,074. The disclosure for this sale can be found here. Corporate insiders own 3.30% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Jana Partners LLC purchased a new position in Stericycle during the first quarter worth about $305,997,000. First Republic Investment Management Inc. increased its position in Stericycle by 23.9% in the first quarter. First Republic Investment Management Inc. now owns 296,838 shares of the company’s stock worth $37,457,000 after buying an additional 57,220 shares in the last quarter. Oakbrook Investments LLC bought a new position in Stericycle during the second quarter worth $13,871,000. Douglas Lane & Associates LLC increased its position in Stericycle by 6.6% in the second quarter. Douglas Lane & Associates LLC now owns 346,276 shares of the company’s stock worth $36,054,000 after buying an additional 21,370 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in Stericycle by 2.7% in the first quarter. Geode Capital Management LLC now owns 729,638 shares of the company’s stock worth $91,897,000 after buying an additional 19,379 shares in the last quarter. Institutional investors and hedge funds own 92.72% of the company’s stock.

About Stericycle

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.

5 Day Chart for NASDAQ:SRCL

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