Sotera Health (NASDAQ:SHC) Stock Price Down 6.5% Following Weak Earnings

Sotera Health (NASDAQ:SHC)’s share price dropped 6.5% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $14.22 and last traded at $14.77. Approximately 101,509 shares changed hands during trading, a decline of 92% from the average daily volume of 1,298,739 shares. The stock had previously closed at $15.80.

The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). Sotera Health had a return on equity of 47.26% and a net margin of 3.65%. The company had revenue of $285.47 million for the quarter, compared to analyst estimates of $278.64 million. During the same quarter in the prior year, the firm earned $0.18 earnings per share. The company’s revenue for the quarter was up 8.5% on a year-over-year basis.

Wall Street Analyst Weigh In

SHC has been the subject of several analyst reports. Citigroup boosted their price target on Sotera Health from $18.00 to $20.00 and gave the company a “buy” rating in a report on Wednesday. Royal Bank of Canada reiterated an “outperform” rating and issued a $17.00 price target on shares of Sotera Health in a report on Tuesday, August 6th. Finally, Barclays boosted their price target on Sotera Health from $14.00 to $17.00 and gave the company an “overweight” rating in a report on Tuesday, August 6th. Two research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat, Sotera Health has an average rating of “Moderate Buy” and an average target price of $16.50.

Insider Buying and Selling

In related news, Director Gtcr Investment Xi Llc sold 10,000,000 shares of the company’s stock in a transaction on Friday, September 6th. The shares were sold at an average price of $15.03, for a total transaction of $150,300,000.00. Following the completion of the sale, the director now directly owns 49,215,301 shares of the company’s stock, valued at approximately $739,705,974.03. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 55.12% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sotera Health

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Mutual of America Capital Management LLC boosted its position in Sotera Health by 15.9% in the 3rd quarter. Mutual of America Capital Management LLC now owns 82,654 shares of the company’s stock valued at $1,380,000 after buying an additional 11,342 shares during the last quarter. Victory Capital Management Inc. raised its stake in shares of Sotera Health by 25.7% in the 3rd quarter. Victory Capital Management Inc. now owns 32,610 shares of the company’s stock valued at $545,000 after purchasing an additional 6,666 shares in the last quarter. Versor Investments LP acquired a new stake in shares of Sotera Health in the 3rd quarter valued at about $337,000. State of New Jersey Common Pension Fund D acquired a new stake in shares of Sotera Health in the 3rd quarter valued at about $2,121,000. Finally, Capital Performance Advisors LLP acquired a new stake in shares of Sotera Health in the 3rd quarter valued at about $91,000. 91.03% of the stock is owned by hedge funds and other institutional investors.

Sotera Health Trading Up 4.5 %

The firm has a market cap of $4.56 billion, a price-to-earnings ratio of 64.44 and a beta of 2.08. The business’s 50 day moving average price is $15.96 and its 200-day moving average price is $13.69. The company has a debt-to-equity ratio of 5.46, a quick ratio of 2.59 and a current ratio of 2.93.

Sotera Health Company Profile

Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems.