This trade activity should not be overlooked: Stericycle Inc. (SRCL)

Stericycle Inc. (NASDAQ: SRCL) stock jumped 1.89% on Friday to $45.77 against a previous-day closing price of $44.92. With 0.31 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.46 million shares. During the session, the Waste Management company that operates in wider Industrials sector, reached to the highest price of $45.79 whereas the lowest price it dropped to was $44.74. The 52-week range on SRCL shows that it touched its highest point at $72.11 and its lowest point at $40.35 during that stretch. It currently has a 1-year price target of $69.25. Beta for the stock currently stands at 1.31.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SRCL was up-trending over the past week, with a rise of 3.44%, but this was up by 7.42% over a month. Three-month performance dropped to -16.83% while six-month performance fell -21.55%. The stock lost -35.08% in the past year, while it has lost -23.26% so far this year. A look at the trailing 12-month EPS for SRCL yields -0.76 with Next year EPS estimates of 2.56. For the next quarter, that number is 0.47. This implies an EPS growth rate of 70.90% for this year and 24.05% for next year. EPS is expected to grow by 11.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -16.60%.

Float and Shares Shorts:

At present, 92.00 million SRCL shares are outstanding with a float of 91.70 million shares on hand for trading. On Apr 28, 2022, short shares totaled 1.75 million, which was 1.90% higher than short shares on Mar 30, 2022. In addition to Ms. Cindy J. Miller as the firm’s Pres, CEO & Director, Ms. Janet H. Zelenka serves as its Exec. VP, CFO & Chief Information Officer.

Institutional Ownership:

Through their ownership of 99.03% of SRCL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.86% of SRCL, in contrast to 44.58% held by mutual funds. Shares owned by individuals account for 2.62%. As the largest shareholder in SRCL with 12.38% of the stake, T. Rowe Price Associates, Inc. holds 11,398,057 shares worth 11,398,057. A second-largest stockholder of SRCL, The Vanguard Group, Inc., holds 8,288,963 shares, controlling over 9.00% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SRCL, holding 6,898,512 shares or 7.49% stake. With a 3.65% stake in SRCL, the American Funds Small Cap World Fu is the largest stakeholder. A total of 3,360,952 shares are owned by the mutual fund manager. The T Rowe Price Equity Income Fund, which owns about 3.00% of SRCL stock, is the second-largest Mutual Fund holder. It holds 2,760,000 shares valued at 121.03 million. Vanguard Total Stock Market Index holds 2.95% of the stake in SRCL, owning 2,716,285 shares worth 119.11 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SRCL since 8 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SRCL analysts setting a high price target of $85.00 and a low target of $47.00, the average target price over the next 12 months is $69.25. Based on these targets, SRCL could surge 85.71% to reach the target high and rise by 2.69% to reach the target low. Reaching the average price target will result in a growth of 51.3% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SRCL will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $2.08 being high and $1.93 being low. For SRCL, this leads to a yearly average estimate of $2.03. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Stericycle Inc. surprised analysts by -$0.14 when it reported $0.32 EPS against a consensus estimate of $0.46. The surprise factor in the prior quarter was -$0.09. Based on analyst estimates, the high estimate for the next quarter is $0.56 and the low estimate is $0.40. The average estimate for the next quarter is thus $0.48.

Summary of Insider Activity:

Insiders traded SRCL stock several times over the past three months with 16 Buys and 10 Sells. In these transactions, 25,188 shares were bought while 5,260 shares were sold. The number of buy transactions has increased to 54 while that of sell transactions has risen to 46 over the past year. The total number of shares bought during that period was 113,037 while 34,903 shares were sold.

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