Sotera Health (NASDAQ:SHC) Shares Gap Up After Strong Earnings

Sotera Health Company (NASDAQ:SHC)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $11.22, but opened at $13.50. Sotera Health shares last traded at $13.45, with a volume of 355,601 shares trading hands.

The company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.03. The firm had revenue of $294.34 million during the quarter, compared to the consensus estimate of $275.81 million. Sotera Health had a net margin of 2.24% and a return on equity of 41.08%. The company’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.19 earnings per share.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Piper Sandler lowered their target price on shares of Sotera Health from $15.00 to $13.00 and set a “neutral” rating for the company in a research note on Wednesday, April 23rd. The Goldman Sachs Group raised shares of Sotera Health from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $14.00 to $17.00 in a research note on Monday, May 5th. Barclays reissued an “overweight” rating on shares of Sotera Health in a research note on Friday. Finally, Wall Street Zen raised shares of Sotera Health from a “hold” rating to a “buy” rating in a research note on Saturday, June 28th. One equities research analyst has rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $16.00.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quarry LP purchased a new stake in shares of Sotera Health during the 4th quarter worth approximately $28,000. UMB Bank n.a. increased its stake in shares of Sotera Health by 112.8% during the 2nd quarter. UMB Bank n.a. now owns 2,635 shares of the company’s stock worth $29,000 after purchasing an additional 1,397 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its stake in shares of Sotera Health by 3,690.1% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 2,691 shares of the company’s stock worth $31,000 after purchasing an additional 2,620 shares during the last quarter. Parallel Advisors LLC increased its stake in shares of Sotera Health by 124.0% during the 2nd quarter. Parallel Advisors LLC now owns 3,340 shares of the company’s stock worth $37,000 after purchasing an additional 1,849 shares during the last quarter. Finally, Summit Securities Group LLC purchased a new stake in shares of Sotera Health during the 1st quarter worth approximately $67,000. 91.03% of the stock is currently owned by hedge funds and other institutional investors.

Sotera Health Stock Performance

The company’s 50 day moving average price is $11.63 and its 200-day moving average price is $12.04. The company has a debt-to-equity ratio of 5.55, a quick ratio of 2.19 and a current ratio of 2.46. The company has a market cap of $3.97 billion, a PE ratio of 174.65 and a beta of 1.81.

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.