Sell Alert: Lorelei McGlynn Cashes Out $1.46M In Henry Schein Stock

On September 9, a recent SEC filing unveiled that Lorelei McGlynn, SVP at Henry Schein HSIC made an insider sell.

What Happened: McGlynn's recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 21,035 shares of Henry Schein. The total transaction value is $1,457,725.

Monitoring the market, Henry Schein's shares down by 0.0% at $68.89 during Tuesday's morning.

Discovering Henry Schein: A Closer Look

Henry Schein Inc is a solutions company for healthcare professionals powered by a network of people and technology. The company is a provider of healthcare products and services primarily to office-based dental and medical practitioners, as well as alternate sites of care. The company operates in two reportable segments; health care distribution and technology & value-added services. The healthcare distribution segment is engaged in combining global dental and medical businesses and distributes consumable products, small equipment, laboratory products, and Vitamins. The technology and value-added services reportable segment provides software, technology & other value-added services to health care practitioners. The majority of revenue is derived from the health care distribution segment.

Breaking Down Henry Schein's Financial Performance

Revenue Growth: Henry Schein's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 1.16%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Key Profitability Indicators:

• Gross Margin: The company sets a benchmark with a high gross margin of 32.46%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Henry Schein exhibits below-average bottom-line performance with a current EPS of 0.81.

Debt Management: Henry Schein's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.81.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 25.42, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.72 is above industry norms, reflecting an elevated valuation for Henry Schein's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 13.41 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Exploring the Significance of Insider Trading

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Breaking Down the Significance of Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Henry Schein's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.