Henry Schein, Inc. (HSIC): A Gold Mine for Growth Investors

The number of Henry Schein, Inc. (NASDAQ:HSIC) shares shorted has fallen by 1,938,554 shares. When looking at a stock for a potential investment, you want to know what percentage of Wall Street is betting against you. That’s what short interest tells you. The most recent short interest data has been released for the December 31st settlement date, which shows a decrease in total short interest for HSIC, to 14,216,283, a retreat of 12% since December 14th. Average daily volume for Henry Schein, Inc. at the December 31st settlement plunged to 1,569,236, as compared to 1,676,963 at the December 14th report. That brought days to cover to 9.059366, a 5.96% decrease from the 9.633389 days to cover recorded at the prior short interest data release. Looking at the experts’ opinion for the HSIC stock we see that the average analyst recommendations at 2.5 suggests buying these shares.

Henry Schein, Inc. (HSIC) will probably climb 7.98 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $100price as 12-month high target. This represents a whopping 25.82 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $85, which represents a return potential of 6.95 percent when compared to the closing price of the stock of $79.48 on Thursday, January 10. The lowest price target for the stock is $69 — slightly more than -13.19 percent from HSIC’s current share price.

The stock is currently hovering around the first support level of $77.39. Below this, the next support is placed in the zone of $75.31. Till the time, the HSIC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.3 on daily chart, which may remain a cause for concern. If the price breaks below $75.31 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $80.52 mark may result into a pull-back move towards $81.57 level.

On 10th of January, Henry Schein, Inc. (NASDAQ:HSIC) shares ended higher after a volatile session. The shares accumulated 3.09 points or 4.05 percent at $79.48 with a heavy trade volume of 3.458 million shares. After opening the session at $76.7, the shares went as high as $79.48 and as low as $76.35, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $12.4 billion and now has 156.3 million shares outstanding. Henry Schein, Inc. (HSIC) stock has lost -7.1 percent of market value in 21 trading days.

HSIC stock has a trailing 3-year beta of 1.02, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.48 a share in the trailing twelve months. The stock’s value has surged 1.22 percent year to date (YTD) against a rise of 8.21 percent in 12 month’s time. The company’s shares still trade -12.99 percent away from its 1-year high of $91.35 and 27.05 percent up from 52-week low of $62.56. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Henry Schein, Inc. (HSIC) are trading at a P/E ratio of 23.7 times earnings reported for the past 12 months. The industry HSIC operates in has an average P/E of 32.17. Its P/E ratio went as low as 18.51X and as high as 27.59 over the 5-year span. Further, it is sporting a 0.95 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.7. 27.3 percent is the gross profit margin for Henry Schein, Inc. and operating margin sits at 6.2 percent. Along with this, the net profit margin is 3 percent.

Let’s take a look at some insider activity at Henry Schein, Inc. (NASDAQ:HSIC) and see the pattern. The earliest insider trade took place on 12/10/2018. Ettinger Michael S parted with a total of 7.43 thousand shares of company at average share price of $84.36. The total for the sales was set at $626.37 thousand. After this transaction, the SVP Corp/Legal Ch of Staff Sec account balance stood at 65.68 thousand shares. The stock lost -5.78 percent since that insider sale. On 12/07/2018, Bergman Stanley M, Chairman, CEO, sold 69 thousand shares at a price per share of $86.32. This removed 5.96 million shares from the insider’s fortune and the stock saw a -7.92 percent retreat in value since the news became public. This transaction left 1.09 million shares in the Chairman, CEO account.

On 12/03/2018, EVP, CFO Paladino Steven performed a sale transaction worth $1.9 million. This sale at $90.06 each has eliminated 21.11 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -11.75 percent decrease since the transaction was reported. The insider now is left with 160.98 thousand shares remaining in the account. Mckinley David, who performs the CCO&Pres. Corp. Com. Dev. Grp. job, sold 8.32 thousand shares for $738.66 thousand. The disposal occurred on 11/30/2018 was priced at $88.77 per share. The share price plunged -10.47 percent since the reporting date. Mckinley David now left with a stake of 68.22 thousand HSIC stock worth $5.42 million after the insider selling.