On September 10, 2023, Williams Jones Wealth Management LLC. revealed an increase in its holdings of STERIS plc (NYSE:STE) by 0.4% during the first quarter, according to their recent Form 13F filing with the SEC. The firm now possess 573,719 shares of the medical equipment provider’s stock after acquiring an additional 2,225 shares within the same period. STERIS constitutes approximately 1.7% of Williams Jones Wealth Management LLC.’s investment portfolio and ranks as its 18th largest holding. As per its most recent filing with SEC, STERIS is valued at $109,741,000 by Williams Jones Wealth Management LLC.
Furthermore, STERIS recently announced a quarterly dividend which will be disbursed on Friday, September 22nd. Shareholders recorded on Wednesday, September 6th will receive a $0.52 dividend. The ex-dividend date has been indicated as Tuesday, September 5th. This marks a positive change from STERIS’s preceding quarterly dividend of $0.47. Paradoxically, this suggests that STERIS currently maintains a dividend payout ratio (DPR) of 170.49%, which might be interpreted as unsustainable.
The yield for this dividend is roughly estimated at 0.93%. On an annualized basis, this translates into a $2.08 dividend payout for investors in STERIS.
Overall, these recent developments highlight the growth of Williams Jones Wealth Management LLC.’s holdings in STERIS and emphasize the company’s commitment to rewarding its shareholders with increased dividends. However, it is important to consider the sustainability of such high dividend payouts and evaluate any potential impact they may have both on STERIS and its investors in the long run.
This article provides an overview of key financial data regarding Williams Jones Wealth Management LLC.’s investment in STERIS and sheds light on the recent changes in STERIS’s dividend policy. Investors and stakeholders must stay informed and exercise prudence when managing their financial portfolios, particularly in an evolving economic landscape.
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Institutional Investors and Analysts Show Confidence in STERIS’s Growth Potential and Financial Performance
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”MMM” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]In recent months, STERIS, a leading medical equipment provider, has attracted the attention of various hedge funds and institutional investors. One prominent player in the financial industry, Morgan Stanley, significantly increased its position in STERIS by 70.7% during the fourth quarter. This move saw the bank acquire an additional 1,556,136 shares of the company’s stock, bringing its total ownership to 3,756,454 shares valued at $693,780,000.
Notably, Norges Bank also entered the scene during the fourth quarter by acquiring a stake worth $153,900,000 in STERIS. Additionally, Findlay Park Partners LLP purchased a stake worth $100,756,000 in the first quarter of this year. Mackenzie Financial Corp followed suit with a new position in STERIS valued at approximately $91,086,000.
The list of institutional investors interested in STERIS continues with Invesco Ltd., which raised its holdings by an impressive 89.8% during the first quarter. As a result of their activity on the market, Invesco Ltd. now owns 953,983 shares of STERIS’s stock valued at $230,645,000.
It is important to note that these institutional investors collectively own 92.91% of STERIS’s stock as it stands today. This level of ownership from big players demonstrates both confidence and trust in the company’s growth potential and long-term prospects.
Several equities research analysts have expressed their opinions regarding STERIS’s trajectory as well. JMP Securities recently upgraded their price target for STERIS from $240.00 to $265.00 while issuing a “market outperform” rating in their research report on September 1st.
Similarly, KeyCorp raised their target price to $258.00 from $254.00 and gave STERIS an “overweight” rating. In their research report, KeyCorp emphasized the company’s potential for growth. Likewise, Stephens raised the price target from $240.00 to $250.00.
On the other hand, Morgan Stanley observed STERIS’s progress and raised their price objective from $206.00 to $225.00 while maintaining an “equal weight” rating. Lastly, StockNews.com initiated coverage on STERIS and declared a “buy” rating on the stock.
With three hold ratings and four buy ratings, STERIS currently has an average rating of “Moderate Buy,” according to Bloomberg. The consensus price target for STERIS, as determined by investment analysts, stands at $239.60.
In terms of stock performance, STERIS traded down $1.71 on September 10th, reaching $222.75 with a trading volume of 251,183 shares—slightly below its average volume of 261,909 shares. With a quick ratio of 1.42 and a current ratio of 2.29, the company maintains healthy liquidity ratios that contribute to its overall financial stability.
STERIS boasts a market capitalization of $22 billion with a relatively high P/E ratio of 182.58 due to its steady growth in recent years. The company also exhibits low volatility in comparison to others in the industry with a beta value of 0.85.
Concerning revenue generation and profitability, STERIS reported impressive results in its last earnings announcement on August 1st, surpassing analysts’ expectations by posting EPS (earnings per share) of $2.00 for the quarter compared to the consensus estimate of $1.86—an outperformance of $0.14 per share.
Moreover, STERIS achieved a return on equity (ROE) of 13.75% and net margin of 2.35%. Its quarterly revenue reached $1.28 billion, 11.1% higher than estimates of $1.21 billion. These figures indicate an upward trend in STERIS’s financial performance when compared to the same quarter last year.
Research analysts forecast that STERIS will post 8.72 EPS for the current year, further cementing confidence in the company’s ability to deliver strong results moving forward.
Overall, with a well-diversified institutional investor base and positive feedback from equities research analysts, STERIS appears poised for continued success. The company’s solid financial performance, marked by impressive revenue growth and profitability metrics, is a testament to its standing as a leading player in the medical equipment industry.
