MELVILLE, N.Y.—Michael S. Ettinger, Executive Vice President and Chief Operating Officer of Henry Schein Inc. (NASDAQ:HSIC), recently sold 12,240 shares of the company's common stock. The transaction, which took place on November 18, 2024, was executed at a price of $75 per share, amounting to a total value of $918,000.
Following the sale, Ettinger retains direct ownership of 87,706 shares. Additionally, he holds 800 shares indirectly as the trustee of trusts for his children and 210 shares through the company’s 401(k) plan.
The transaction was carried out under a Rule 10b5-1 trading plan, which Ettinger adopted on March 4, 2024. This plan allows company insiders to set up a predetermined schedule for buying or selling company stock to avoid potential insider trading violations.
In other recent news, Henry Schein has reported a slight increase in global sales for the third quarter of 2024, with a 0.4% year-over-year increase to $3.2 billion. However, the company's GAAP net income for the same period was reported at $99 million, a decrease from $137 million in Q3 2023. In addition, non-GAAP net income also saw a decrease, from $173 million in the previous year to $155 million. Amidst these financial results, Piper Sandler has reaffirmed its Overweight rating on Henry Schein, following proposals from activist investor Ananym Capital Management for significant changes within the company. The firm's response includes potential organizational cost reductions, a potential sale of Henry Schein's Medical (TASE:PMCN) distribution arm, and establishing a CEO succession strategy. In other developments, Henry Schein has plans to launch a global e-commerce platform in the US in 2025 and has increased its non-GAAP EPS guidance for fiscal 2024 to $4.74 - $4.82. It's worth noting that these are recent developments and the company's future actions regarding Ananym Capital Management's push for change remain to be seen.
InvestingPro Insights
As Michael S. Ettinger, Executive Vice President and Chief Operating Officer of Henry Schein Inc. (NASDAQ:HSIC), executes a significant stock sale, investors may benefit from additional context provided by InvestingPro data and tips.
Henry Schein, a prominent player in the Healthcare Providers & Services industry, currently boasts a market capitalization of $9.19 billion. The company's stock has shown notable strength recently, with InvestingPro data revealing a significant 10.48% return over the last week and a 9.08% return over the past year.
An InvestingPro Tip highlights that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This strategy often aims to increase shareholder value, aligning with the company's focus on returns to investors.
Despite the recent insider sale, Henry Schein's financial health appears robust. The company reported revenue of $12.5 billion in the last twelve months, with a gross profit margin of 31.59%. Additionally, an InvestingPro Tip indicates that analysts predict the company will be profitable this year, further supporting its financial stability.
It's worth noting that while Henry Schein does not pay a dividend to shareholders, it has been profitable over the last twelve months. This profitability, combined with the company's share buyback program, suggests a focus on alternative methods of delivering value to shareholders.
For investors seeking a deeper understanding of Henry Schein's potential, InvestingPro offers 7 additional tips, providing a more comprehensive analysis of the company's financial position and market performance.
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