Select Equity Group, L.P. 13F: Adds $45M to STERIS (STE) Stake

Select Equity Group, L.P. expanded its investment in medical equipment provider STERIS plc (NYSE:STE) by 11.17% in its latest disclosure on May 15, 2026. According to the investment firm's SEC filing, it added 215,346 shares of the company, bringing its total position to 2,143,379 shares. The expanded position was valued at $451.33 million at the end of the reporting period. Keep in mind that institutional 13F filings are backward-looking and represent holdings as of the reporting date rather than current market positions.

Select Equity Group's High-Conviction Investment Style

Select Equity Group is recognized for its rigorous, research-intensive approach to stock picking. The New York-based firm typically targets high-quality businesses with strong competitive advantages, robust cash flows, and long-term growth potential. This latest purchase of STERIS shares shows the firm is leaning further into a medical technology leader. The fund previously held 1,928,033 shares before making the move. This is part of a broader pattern of active portfolio management; for instance, the firm also increased its stake in BWX Technologies by 68.9% on May 15, 2026, adding 296,311 shares to that position.

STERIS Stock Performance and Market Position

STERIS shares closed recently at $210.57. The stock's 52-week trading range has been between $195.14 and $269.44. The company's 50-day moving average is $224.73, and its 200-day moving average is $230.34. With a price-to-earnings ratio of 25.30 and a forward P/E of 16.90, the stock presents an attractive entry point for value-oriented institutional investors. This purchase by Select Equity Group comes as other large investors also show interest. For instance, Generation Investment Management added over 219,000 shares of STERIS, representing a 10.5% increase, in its own recent filing. Even Capitol Hill has taken notice, with Representative Gilbert Cisneros disclosing multiple purchases of the stock in May, with each trade valued between $1,001 and $15,000.

Recent Earnings

STERIS continues to deliver solid financial performance, generating total revenue of $6.04 billion with a year-over-year revenue growth of 7.3%. The company maintained a healthy net margin of 13.33% and achieved a return on equity of 11.39%. Diluted earnings per share came in at $8.18. Shareholders are looking forward to the company's next quarterly earnings report, which is scheduled for November 4, 2026.

Dividend

In addition to its financial stability, STERIS offers consistent returns to its shareholders through its dividend program. The company currently pays an annual dividend rate of $2.58 per share, which translates to a dividend yield of 1.25%. With a conservative dividend payout ratio of 30.81%, the company retains plenty of capital to reinvest in its core infection prevention and sterilization businesses while still rewarding long-term investors.

Analysts Set New Price Targets

Several research firms have recently weighed in on STERIS. On July 28, 2026, UBS initiated coverage on the company, giving it a Buy rating and a $275.00 price target. Later, on August 7, 2026, UBS maintained its Buy rating but trimmed its price target to $270.00. That same day, Piper Sandler reiterated its Overweight rating and bumped its price target to $275.00 from its previous target of $270.00. Overall, the consensus among the 8 analysts covering the stock is a buy, with a target mean price of $263.13, ranging from a low of $232.00 to a high of $280.00.

Inside the STERIS Business Model

STERIS is a global leader in infection prevention and sterilization products and services. The Ohio-based company provides essential cleaning chemicals, sterilizing equipment, and repair services to hospitals, medical device manufacturers, and pharmaceutical companies. This critical role in the healthcare supply chain provides the company with a steady, recurring revenue stream across its segments, making it an attractive target for long-term institutional investors.

What's Ahead for STERIS plc

The increased stake by Select Equity Group highlights growing institutional confidence in the business model of STERIS. Investors should keep an eye on the company's next earnings report on November 4, 2026, to see if the company can sustain its growth trajectory. Future 13F filings will reveal if Select Equity Group or other institutional players continue to expand their holdings.