Henry Schein EVP Sold $207K In Company Stock

Mark E Mlotek, EVP at Henry Schein HSIC, reported an insider sell on August 15, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Mlotek sold 3,000 shares of Henry Schein. The total transaction amounted to $207,360.

The latest update on Friday morning shows Henry Schein shares down by 0.0%, trading at $69.78.

Unveiling the Story Behind Henry Schein

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.

Henry Schein: A Financial Overview

Revenue Growth: Henry Schein displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 1.16%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Profitability Metrics: Unlocking Value

• Gross Margin: Achieving a high gross margin of 32.46%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Henry Schein's EPS is below the industry average. The company faced challenges with a current EPS of 0.81. This suggests a potential decline in earnings.

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 25.75, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 0.73 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Henry Schein's EV/EBITDA ratio, surpassing industry averages at 13.55, positions it with an above-average valuation in the market.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.