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

Zacks Investment Research cut shares of Henry Schein (NASDAQ:HSIC) from a hold rating to a sell rating in a research note released on Wednesday morning, Zacks.com reports. They currently have $71.00 price target on the stock.

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 have also recently issued reports on HSIC. Cleveland Research reiterated a hold rating on shares of Henry Schein in a research note on Friday, November 1st. BidaskClub cut Henry Schein from a hold rating to a sell rating in a research note on Thursday, September 26th. Barrington Research reiterated a buy rating and issued a $75.00 price target on shares of Henry Schein in a research note on Wednesday. William Blair cut Henry Schein from an outperform rating to a market perform rating in a research note on Wednesday, August 7th. Finally, TheStreet upgraded Henry Schein from a c+ rating to a b rating in a research note on Monday, October 14th. Six research analysts have rated the stock with a sell rating, seven have issued a hold rating and four have assigned a buy rating to the company. The stock has a consensus rating of Hold and a consensus target price of $73.50.

Shares of Henry Schein stock traded up $0.17 during trading on Wednesday, reaching $68.91. The stock had a trading volume of 905,200 shares, compared to its average volume of 1,554,308. Henry Schein has a 52 week low of $56.58 and a 52 week high of $72.81. The company has a market capitalization 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 stock has a fifty day moving average price of $63.16 and a two-hundred day moving average price of $65.35. 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 (NASDAQ:HSIC) last issued its quarterly earnings data 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. Henry Schein had a return on equity of 15.93% and a net margin of 4.66%. The company had revenue of $2.51 billion during the quarter, compared to analysts’ expectations of $2.52 billion. During the same quarter in the previous year, the company posted $1.03 earnings per share. The business’s revenue was up 6.5% on a year-over-year basis. On average, equities analysts forecast that Henry Schein will post 3.45 EPS for the current fiscal year.

Henry Schein announced that its board has authorized a stock repurchase program on Thursday, October 31st that allows the company to buyback $400.00 million in shares. This buyback authorization allows the company to repurchase up to 4.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its shares are undervalued.

In other Henry Schein news, CEO Stanley M. Bergman sold 90,000 shares of the company’s stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $67.51, for a total transaction of $6,075,900.00. Following the completion of the sale, the chief executive officer now directly owns 344,554 shares in the company, valued at $23,260,840.54. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul Brons sold 1,758 shares of the company’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $69.34, for a total value of $121,899.72. Following the sale, the director now owns 15,824 shares of the company’s stock, valued at $1,097,236.16. The disclosure for this sale can be found here. Insiders have sold 123,655 shares of company stock valued at $8,373,585 over the last 90 days. Corporate insiders own 1.06% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. lifted its stake in Henry Schein by 24.3% during the second quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 25,327 shares of the company’s stock worth $1,770,000 after purchasing an additional 4,957 shares during the last quarter. Ibex Wealth Advisors bought a new stake in Henry Schein during the second quarter worth $40,000. Janney Montgomery Scott LLC increased its holdings in shares of Henry Schein by 89.7% during the second quarter. Janney Montgomery Scott LLC now owns 24,882 shares of the company’s stock worth $1,739,000 after buying an additional 11,768 shares in the last quarter. CIBC Asset Management Inc increased its holdings in shares of Henry Schein by 9.6% during the third quarter. CIBC Asset Management Inc now owns 27,896 shares of the company’s stock worth $1,771,000 after buying an additional 2,453 shares in the last quarter. Finally, Toronto Dominion Bank increased its holdings in shares of Henry Schein by 0.5% during the second quarter. Toronto Dominion Bank now owns 106,298 shares of the company’s stock worth $7,428,000 after buying an additional 548 shares in the last quarter.

Henry Schein Company Profile

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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