Nuance Investments Dumps $38 Million in Henry Schein (NASDAQ: HSIC) Shares: Should Investors Sell Too?

NUANCE Investments, LLC reported a significant reduction in its Henry Schein position, selling 494,249 shares and reducing exposure by $38.20 million for Q3 2025, according to a November 5, 2025, SEC filing.

What happened

According to an SEC filing dated November 5, 2025, NUANCE Investments, LLC disclosed the sale of 494,249 Henry Schein shares.

This move reduced the fund's stake to 314,208 shares, valued at $20.85 million.

The position now accounts for 2.1% of the fund's $982.15 million reportable U.S. equity assets.

What else to know

NUANCE sold a substantial portion of its Henry Schein holding, which now comprises 2.12% of reportable AUM, a decrease from 5.6% in the prior quarter ended September 30, 2025

Top holdings after the filing:

1. Clorox(NYSE:CLX): $85.67 million (8.7% of AUM) as of 2025-09-30
2. California Water Service(NYSE:CWT): $80.97 million (8.2% of AUM) as of 2025-09-30
3. Marten Transport(NASDAQ:MRTN): $65.26 million (6.6% of AUM) as of 2025-09-30
4. Informatica(NYSE:INFA): $61.19 million (6.2% of AUM) as of 2025-09-30
5. Werner Enterprises(NASDAQ:WERN): $51.53 million (5.2% of AUM) as of 2025-09-30

As of November 5, 2025, Henry Schein shares were priced at $72.01, up 4% for the year ended November 5, 2025, but underperformed the S&P 500 by 6 percentage points over the past year.

Company Overview

Company Snapshot

Henry Schein:

• Offers a broad portfolio of dental and medical products, including infection-control supplies, pharmaceuticals, equipment, and practice management software.
• Generates revenue primarily through the distribution of healthcare supplies and value-added technology solutions to practitioners and clinics.
• Serves dental practices, laboratories, physician offices, government agencies, and institutional healthcare providers worldwide.

Henry Schein is a global healthcare distributor with a focus on dental and medical markets, leveraging a diversified product mix and value-added services.

The company's scale and integrated technology offerings support its competitive positioning in the healthcare supply chain.

Foolish take

After opening a position in the company in late 2023, Nuance Investments continued to sell out of its Henry Schein position in its latest quarter.

While this selling may look noteworthy to investors, the firm's portfolio allocation to Henry Schein has only decreased from 2.4% to 2.1%, so on a relative basis, it may not be a huge deal.

From a Foolish individual investor perspective, I think there is a lot to like about Henry Schein.

While its stock has gone sideways over the last few years -- partly due to a 2023 ransomware attack and also a slowdown following a pandemic-aided boom -- the company remains the distribution leader in its dental niche in the U.S., with a 40% market share.

However, this is only about half of the company's sales, as Henry Shein also distributes medical products, holding a 20% share of this market in the U.S. Furthermore, the company also creates specialty products and technology to use in various industries, rounding out its full suite of solutions.

Leveraging its strategy as a serial acquirer, Henry Schein has delivered 5% sales growth over the last five years and typically generates a double-digit return on invested capital, thanks in part to these purchases.

Best yet for investors, anything it doesn't spend on new innovations or acquisitions, it tends to return to shareholders through stock buybacks. Since 2015, the company has lowered its share count by 3.4% annually.

Currently, the stock trades at a discounted 15 times earnings. As profits should steadily recover following its ransomware attacks, Henry Schein is a lesser-known industry leader that could provide investors with steady, market-matching returns -- and maybe even upside at today's low valuation.

Glossary

AUM: Assets Under Management – The total market value of assets a fund or investment manager oversees.
Reportable U.S. equity AUM: The portion of a fund's assets invested in U.S. stocks that must be disclosed in regulatory filings.
Position: The amount of a particular security or asset held by an investor or fund.
Top holdings: The largest investments in a fund's portfolio, typically by market value or percentage of AUM.
Quarter: A three-month period used by companies and funds for financial reporting and analysis.
Filing: An official document submitted to regulators, often disclosing financial or investment information.
TTM: The 12-month period ending with the most recent quarterly report.
Healthcare supply chain: The system for sourcing, distributing, and delivering medical products and services to healthcare providers.
Value-added technology solutions: Technology services or products that enhance core offerings, providing additional benefits to customers.
Institutional healthcare providers: Large organizations such as hospitals or government agencies delivering medical care, as opposed to individual practitioners.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.