In a recent transaction, Majors Cary L, the Senior Vice President and President of Healthcare at STERIS plc (NYSE:STE), sold 4,932 ordinary shares of the company, according to a Form 4 filing with the Securities and Exchange Commission. The shares were sold on June 5, 2024, at a weighted average price ranging from $229.2550 to $229.9900, with the total sale amounting to approximately $1,132,535.
The same filing revealed that on the same day, Majors Cary L also exercised options to acquire 4,932 shares at a price of $114.22 per share, totaling $563,333. This transaction was part of an option exercise, allowing the executive to purchase shares at a predetermined price.
Following the sale, Cary L's direct holdings in STERIS plc decreased to 13,054 ordinary shares, which includes 9,872 restricted shares with lapsed restrictions spread over several dates from 2025 to 2027. Additionally, the executive has indirect ownership of 67 ordinary share equivalents held under the STERIS Corporation 401(k) Plan as of the end of May 2024.
STERIS plc, headquartered in Dublin, Ireland, is a global leader in infection prevention, decontamination, and surgical and critical care, widely recognized for its innovative solutions in the healthcare sector. The company's stock is traded on the New York Stock Exchange under the ticker symbol STE.
Investors and market watchers often monitor insider transactions like these for insights into the perspectives of senior executives on their company's stock. The transactions by Majors Cary L provide a glimpse into the executive's stock activity and holdings in STERIS plc.
In other recent news, STERIS plc has reported a robust financial performance in the fourth quarter of 2024, with a 10% increase in total revenue and adjusted earnings per diluted share reaching $2.58. For the full fiscal year, STERIS exceeded expectations, with a 12% increase in total revenue and adjusted earnings per share of $8.83. The healthcare equipment provider's performance has led Piper Sandler to increase its price target for the company to $225 from $220, while maintaining a neutral rating.
STERIS also provided a positive outlook for fiscal 2025, projecting continued revenue growth and an increase in adjusted earnings per diluted share. The company's healthcare segment saw a 7% constant currency organic revenue growth, attributed to higher volume and pricing. However, the gross margin saw a slight decline.
In other developments, the company announced a restructuring plan focusing on core customers for sustainable growth. STERIS is also actively pursuing growth through mergers and acquisitions, with a focus on expanding its X-ray offerings to meet the demand for gamma radiation. These are among the recent developments for the company.
InvestingPro Insights
Amidst the insider trading activities at STERIS plc, investors seeking a deeper understanding of the company's financial health can look to recent data from InvestingPro. As of the latest metrics, STERIS plc boasts a market capitalization of $22.44 billion. The company's P/E ratio stands at a high 59.27, indicating that investors are willing to pay a premium for current earnings, which can be a sign of positive future growth expectations or potentially overvalued stock.
On the growth front, STERIS has demonstrated a solid revenue increase, with a growth rate of 13.28% in the last twelve months as of Q4 2024. This is complemented by a gross profit margin of 43.52%, underscoring the company's ability to maintain profitability in its operations. Additionally, the company's dividend yield is currently at 0.9%, with a notable dividend growth of 10.64% in the same period, reflecting its commitment to returning value to shareholders.
One of the InvestingPro Tips highlights that STERIS has raised its dividend for 13 consecutive years, a testament to its financial resilience and shareholder-friendly approach. Furthermore, the company is trading at a low PEG ratio of 0.16, suggesting that its stock may be undervalued relative to near-term earnings growth prospects.
For those interested in a deeper dive, InvestingPro offers additional tips on STERIS plc, which can be accessed at https://www.investing.com/pro/STE. There are currently 9 more InvestingPro Tips available, providing valuable insights for investors. Additionally, users can take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of information and analysis to inform investment decisions.
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