On May 24, 2023, Executive Vice President and Chief Operating Officer Michael Ettinger sold 14,881 shares of Henry Schein Inc (HSIC, Financial), a leading global provider of healthcare products and services to office-based dental and medical practitioners. This transaction comes amidst a year of insider activity that has seen no insider purchases and six insider sales in total.
Who is Michael Ettinger?
Michael Ettinger serves as the Executive Vice President and Chief Operating Officer of Henry Schein Inc. He has been with the company for over two decades and has held various leadership positions, contributing significantly to the company's growth and success. Ettinger's experience and expertise in the healthcare industry have been instrumental in driving the company's strategic initiatives and operational excellence.
About Henry Schein Inc
Henry Schein Inc is a Fortune 500 company that provides healthcare products and services to office-based dental, medical, and animal health practitioners. The company operates through two business segments: Healthcare Distribution and Technology and Value-Added Services. With a presence in over 30 countries, Henry Schein Inc is committed to delivering innovative solutions and exceptional customer service to its clients, helping them improve patient care and practice efficiency.
Insider Trading Analysis
Over the past year, Michael Ettinger has sold a total of 14,881 shares and has not made any purchases. This recent sale represents a notable insider transaction, as there have been no insider buys and six insider sells in total over the same timeframe for Henry Schein Inc.
Insider trading activity can provide valuable insights into a company's prospects and the confidence of its executives. In this case, the lack of insider purchases and the presence of multiple insider sales may raise questions about the company's future performance and the insiders' outlook on the stock. However, it is essential to consider other factors, such as the company's financial health and market conditions, before drawing any conclusions.
Stock Price and Valuation
On the day of Michael Ettinger's recent sale, shares of Henry Schein Inc were trading at $75.12 apiece, giving the stock a market capitalization of $9,814.76 million. The price-earnings ratio stands at 21.28, which is higher than the industry median of 18.45 and the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its historical trading levels.
However, with a price of $75.12 and a GuruFocus Value of $86.54, Henry Schein Inc has a price-to-GF-Value ratio of 0.87. This indicates that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated using historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent sale of 14,881 shares by EVP & COO Michael Ettinger may raise questions about the outlook for Henry Schein Inc. However, it is crucial to consider the company's overall financial health, market conditions, and valuation before making any investment decisions. While the stock's price-earnings ratio suggests it may be overvalued compared to its peers and historical levels, the price-to-GF-Value ratio indicates that it is modestly undervalued based on its intrinsic value. Investors should carefully weigh these factors and conduct further research before making any decisions regarding Henry Schein Inc's stock.
