Can Henry Schein’s Billion-Dollar Buyback Reverse Its Fortunes?

Facing a sustained stock decline, healthcare distribution leader Henry Schein is deploying a massive financial tool: a billion-dollar share repurchase authorization. This aggressive capital return initiative is intended to signal strong management confidence, but market observers are questioning whether it can counteract fundamental business pressures.

In a decisive move, the company’s board has significantly expanded its existing share buyback program. The fresh authorization of $750 million comes on top of a $500 million program already in place. Combined, this represents a $1.25 billion commitment to support the equity value, a sum that equates to approximately nine percent of its outstanding shares.

Chief Financial Officer Ronald N. South has linked this decision to the company’s faith in its strategic three-year plan,... Read more...