An analyst sees good growth prospects for Sotera Health Company (SHC)

Sotera Health Company (NASDAQ: SHC) stock jumped 2.25% on Monday to $17.30 against a previous-day closing price of $16.92. With 3.52 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.97 million shares. During the session, the Diagnostics & Research company that operates in wider Healthcare sector, reached to the highest price of $17.60 whereas the lowest price it dropped to was $17.01. The 52-week range on SHC shows that it touched its highest point at $24.90 and its lowest point at $5.78 during that stretch. It currently has a 1-year price target of $12.50.

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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 SHC was down-trending over the past week, with a drop of -5.10%, but this was up by 124.38% over a month. Three-month performance surged to 159.76% while six-month performance fell -8.27%. The stock lost -16.43% in the past year, while it has gained 107.68% so far this year. A look at the trailing 12-month EPS for SHC yields 0.43 with Next year EPS estimates of 1.02. For the next quarter, that number is 0.22. This implies an EPS growth rate of 405.80% for this year and 8.66% for next year.

Float and Shares Shorts:

At present, 280.14 million SHC shares are outstanding with a float of 273.64 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.13 million, which was 2.17% higher than short shares on Sep 14, 2022. In addition to Mr. Michael B. Petras Jr. as the firm’s Chairman & CEO, Mr. Matthew J. Klaben Esq. serves as its Interim Sr. VP, Gen. Counsel & Sec.

Institutional Ownership:

Through their ownership of 89.00% of SHC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 28.09% of SHC, in contrast to 13.10% held by mutual funds. Shares owned by individuals account for 12.17%. As the largest shareholder in SHC with 3.21% of the stake, The Vanguard Group, Inc. holds 9,057,503 shares worth 9,057,503. A second-largest stockholder of SHC, BlackRock Fund Advisors, holds 7,730,493 shares, controlling over 2.74% of the firm’s shares. Citadel Advisors LLC is the third largest shareholder in SHC, holding 3,524,112 shares or 1.25% stake. With a 1.07% stake in SHC, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 3,025,345 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.07% of SHC stock, is the second-largest Mutual Fund holder. It holds 3,012,420 shares valued at 25.09 million. Vanguard Small Cap Index Fund holds 0.90% of the stake in SHC, owning 2,544,157 shares worth 21.19 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SHC since 7 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SHC analysts setting a high price target of $25.00 and a low target of $7.00, the average target price over the next 12 months is $14.50. Based on these targets, SHC could surge 44.51% to reach the target high and fall by -59.54% to reach the target low. Reaching the average price target will result in a decline of -16.18% 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. SHC will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of $0.94 being high and $0.93 being low. For SHC, this leads to a yearly average estimate of $0.93. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sotera Health Company surprised analysts by $0.01 when it reported $0.23 EPS against a consensus estimate of $0.22. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.23 and the low estimate is $0.21. The average estimate for the next quarter is thus $0.22.

Summary of Insider Activity:

Insiders traded SHC stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 235,478 shares were bought while 31,162 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 603,355 while 31,162 shares were sold.

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