Sterling Check Corp. Is Worried About This – Should You Be Worried Too?

Sterling Check Corp. (STER) has disclosed a new risk, in the Corporate Activity and Growth category.

Sterling Check Corp. entered into a merger agreement on February 28, 2024, with First Advantage, which has imposed certain interim covenants on Sterling’s operations. These covenants mandate that Sterling conduct its business as usual while also restricting it from engaging in specific actions without First Advantage’s consent until the merger is finalized or the agreement is terminated. Consequently, Sterling Check Corp. may face limitations in seizing new business opportunities, potentially hindering its strategic execution and negatively impacting its financial performance and growth prospects during this interim period.

Overall, Wall Street has a Hold consensus rating on STER stock based on 1 Buy and 5 Holds.

To learn more about Sterling Check Corp.’s risk factors, click here.