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 provider of healthcare products and services to office-based dental and medical practitioners. This insider sell comes amidst a year of insider trading activity that has seen no insider buys and seven insider sells 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 several years, playing a crucial role in the company's growth and expansion. Ettinger's insider trading activity over the past year includes selling 14,881 shares in total and purchasing 0 shares in total.
About Henry Schein Inc
Henry Schein Inc is a global distributor of healthcare products and services, primarily catering to office-based dental and medical practitioners. The company operates through two business segments: Healthcare Distribution and Technology and Value-Added Services. Henry Schein Inc offers a comprehensive range of products, including dental consumables, equipment, pharmaceuticals, and surgical supplies, as well as software solutions and support services to help practitioners improve patient care and streamline their operations.
Insider Buy/Sell Analysis and Stock Price Relationship
Over the past year, the insider transaction history for Henry Schein Inc reveals a trend of insider selling, with seven insider sells and no insider buys. This could indicate that insiders may believe the stock is overvalued or that they are taking advantage of a high stock price to cash in on their holdings. However, it is essential to consider other factors, such as the company's financial performance and market conditions, before drawing any conclusions.
Valuation
On the day of Michael Ettinger's recent sell, shares of Henry Schein Inc were trading at $75.12 apiece, giving the stock a market cap of $9,835.720 million. The price-earnings ratio stands at 21.33, which is higher than the industry median of 18.54 and higher than 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 $86.53, 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 the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, while the recent insider sell by Michael Ettinger and the overall trend of insider selling over the past year may raise some concerns, it is essential to consider the company's valuation and financial performance before making any investment decisions. Based on the GF Value, Henry Schein Inc appears to be modestly undervalued, which could present an opportunity for investors seeking value in the healthcare sector.
