Henry Schein (NASDAQ:HSIC) Rating Lowered to Sell at Zacks Investment Research

Henry Schein (NASDAQ:HSIC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday, Zacks.com reports. They presently have a $71.00 target price on the stock. Zacks Investment Research‘s price target indicates a potential upside of 3.03% from the company’s previous close.

According to Zacks, “Henry Schein exited the third quarter of 2019 on a mixed note. The company witnessed solid performance by each of its key operating businesses. Henry Schein's strong share gains in the North American market buoys optimism. The company’s stellar international performance is also impressive. We are upbeat about the company registering solid organic revenue growth in its Medical sales business from the North American Rescue acquisition, during the third quarter. The company continued gaining from its Henry Schein One business through the quarter. Overall, year-over-year its revenue growth is encouraging. Over the past six months, Henry Schein has outperformed the industry. Nonetheless, we are disappointed with the contraction in gross margin and rising selling, general and administrative (SG&A) expenses. “

A number of other brokerages also recently issued reports on HSIC. Cleveland Research reaffirmed a “hold” rating on shares of Henry Schein in a research report on Friday, November 1st. TheStreet raised shares of Henry Schein from a “c+” rating to a “b” rating in a report on Monday, October 14th. BidaskClub lowered shares of Henry Schein from a “hold” rating to a “sell” rating in a report on Thursday, September 26th. William Blair lowered shares of Henry Schein from an “outperform” rating to a “market perform” rating in a report on Wednesday, August 7th. Finally, Barrington Research reissued a “buy” rating and set a $75.00 price objective on shares of Henry Schein in a report on Wednesday. Six analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $73.50.

Shares of HSIC stock traded up $0.17 during trading hours on Wednesday, reaching $68.91. 905,200 shares of the company’s stock were exchanged, compared to its average volume of 1,554,308. The stock’s 50 day moving average is $63.16 and its 200-day moving average is $65.35. The company has a market cap of $10.04 billion, a price-to-earnings ratio of 16.69, a P/E/G ratio of 2.62 and a beta of 0.85. The company has a current ratio of 1.63, a quick ratio of 0.95 and a debt-to-equity ratio of 0.30. Henry Schein has a fifty-two week low of $56.58 and a fifty-two week high of $72.81.

Henry Schein (NASDAQ:HSIC) last issued its quarterly earnings results on Tuesday, November 5th. The company reported $0.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.86 by $0.04. The business had revenue of $2.51 billion for the quarter, compared to the consensus estimate of $2.52 billion. Henry Schein had a return on equity of 15.93% and a net margin of 4.66%. The business’s quarterly revenue was up 6.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.03 earnings per share. Equities analysts anticipate that Henry Schein will post 3.45 EPS for the current year.

Henry Schein announced that its board has approved a stock repurchase plan on Thursday, October 31st that allows the company to repurchase $400.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 4.3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

In related news, SVP Michael S. Ettinger sold 3,671 shares of the company’s stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $66.96, for a total transaction of $245,810.16. Following the completion of the transaction, the senior vice president now owns 87,972 shares in the company, valued at approximately $5,890,605.12. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Steven Paladino sold 21,370 shares of the company’s stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $68.83, for a total transaction of $1,470,897.10. Following the transaction, the chief financial officer now owns 144,863 shares of the company’s stock, valued at approximately $9,970,920.29. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 123,655 shares of company stock worth $8,373,585. 1.06% of the stock is owned by corporate insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. DNB Asset Management AS raised its holdings in Henry Schein by 5.0% in the 2nd quarter. DNB Asset Management AS now owns 213,759 shares of the company’s stock valued at $14,942,000 after acquiring an additional 10,249 shares during the last quarter. Addenda Capital Inc. raised its holdings in Henry Schein by 4.5% in the 2nd quarter. Addenda Capital Inc. now owns 16,387 shares of the company’s stock valued at $1,146,000 after acquiring an additional 707 shares during the last quarter. Xact Kapitalforvaltning AB grew its stake in shares of Henry Schein by 5.2% in the 2nd quarter. Xact Kapitalforvaltning AB now owns 50,757 shares of the company’s stock valued at $3,548,000 after buying an additional 2,510 shares during the period. Bridge Creek Capital Management LLC grew its stake in shares of Henry Schein by 6.8% in the 2nd quarter. Bridge Creek Capital Management LLC now owns 39,322 shares of the company’s stock valued at $2,749,000 after buying an additional 2,500 shares during the period. Finally, NN Investment Partners Holdings N.V. purchased a new stake in shares of Henry Schein in the 2nd quarter valued at approximately $687,000.

About Henry Schein

Henry Schein, Inc provides health care products and services to dental practitioners and laboratories, physician practices, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services.

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