Key Points
Broyhill Asset Management, LLC increased its SHC stake by 252,588 shares; estimated transaction value was $4.19 million based on average pricing for the quarter.
The quarter-end value of the position rose by $3.53 million, reflecting both the share increase and stock price movement during the period.
The trade represented a 3.87% change in the fund’s 13F reportable assets under management.
After the trade, Broyhill held 281,531 shares of SHC, valued at $4.04 million as of March 31, 2026.
The SHC stake now accounts for 3.73% of Broyhill’s reportable AUM, placing it outside the fund’s top five holdings.
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Sotera Health (NASDAQ:SHC) offers sterilization and lab testing for healthcare and life sciences clients, supporting global regulatory compliance.
Broyhill Asset Management, LLC disclosed a buy of Sotera Health, adding 252,588 shares in the first quarter. The estimated transaction value, based on average quarterly pricing, was $4.19 million, according to the firm’s SEC filing dated May 06, 2026.
What happened
According to an SEC filing dated May 06, 2026, Broyhill Asset Management, LLC bought 252,588 additional shares of Sotera Health (NASDAQ:SHC) in the first quarter of 2026. The estimated value of this transaction was $4.19 million, calculated using the mean unadjusted close for the quarter. The quarter-end value of the SHC position rose by $3.53 million, reflecting both the share increase and underlying stock price appreciation.
What else to know
- This was a buy transaction, bringing the SHC position to 3.73% of Broyhill’s 13F reportable assets under management as of March 31, 2026.
- Top holdings after the filing:
- NASDAQ: SHY: $6.75 million (6.23% of AUM)
- NYSE: IQV: $5.58 million (5.58% of AUM)
- NYSE: VVV: $5.18 million (4.79% of AUM)
- NYSE: RTO: $4.34 million (4.01% of AUM)
- NYSEMKT: LQD: $4.09 million (3.78% of AUM)
- As of May 5, 2026, Sotera Health shares were priced at $15.33, up 18.7% over the prior year, but underperformed the S&P 500 by 9.82 percentage points.
- The company’s trailing-12-month revenue was $1.19 billion, with net income of $117.80 million and a five-year revenue CAGR of 7.3%.
- Sotera Health’s forward P/E is 15.17 and EV/EBITDA stands at 14.12 as of March 31, 2026. The stock was 20.1% below its 52-week high as of May 6, 2026.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.19 billion |
| Net Income (TTM) | $117.80 million |
| Price (as of market close 2026-05-05) | $15.33 |
| One-Year Price Change | 18.65% |
Company Snapshot
- Offers sterilization services (gamma, electron beam, EO processing), microbiological and analytical chemistry testing, and advisory solutions for regulatory and quality needs.
- Generates revenue primarily through service contracts with medical device, pharmaceutical, food, and industrial clients, leveraging specialized facilities and scientific expertise.
- Main customers include medical device manufacturers, pharmaceutical companies, and organizations in the food and agricultural sectors seeking compliance and safety assurance.
Sotera Health is a leading provider of mission-critical sterilization and lab testing services, supporting the safety and regulatory compliance of healthcare and life sciences industries. The company operates a global platform with advanced technologies and a diversified client base, enabling consistent revenue generation and resilience. Its integrated service offerings and regulatory expertise position it as a trusted partner for organizations requiring high standards of product safety and quality.
What this transaction means for investors
Broyhill’s recent purchase of Sotera Health’s shares may indicate this institution is taking a chance on a company it perceives as being temporarily undervalued. Broyhill had a small stake in the company before the transaction, so it was already on their radar.
Sotera has faced recent regulatory and legal challenges, making it somewhat of a contrarian investment. The market may be overly pessimistic about the company, though, given what it has going for it. It provides an essential service for healthcare providers and labs, which has steady demand and high barriers to entry. So it’s reasonable to believe it may get past its current concerns and thrive.
It’s important to note, however, that an institution like Broyhill has a large, balanced portfolio and can afford to take chances like this. Its top five holdings reflect a conservative approach, with exposure to low-risk investments. Investors with a well-balanced, diversified portfolio and a contrarian streak might consider Sotera or other similar companies within the sector.
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Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Iqvia Holdings. The Motley Fool recommends Rentokil Initial Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
