Greenhaven Bets Over $143 Million on a Turnaround at Medical Devices Leader Baxter

On Nov. 4, 2025, Greenhaven Associates disclosed a new position in Baxter International (NYSE:BAX), acquiring approximately 6,288,349 shares for roughly $143.19 million based on quarterly average pricing during the third quarter.

What happened

According to a filing with the U.S. Securities and Exchange Commission dated Nov 4, 2025, Greenhaven Associates initiated a new position in Baxter International, purchasing 6,288,349 shares at an estimated transaction value of $143.19 million. Baxter represents 2.77% of its $5.17 billion in reportable equity holdings as of September 30, 2025.

What else to know

This is a new position, making up 2.77% of Greenhaven’s 13F assets under management after the quarter’s trades.

Top five holdings post-filing:

• GM: $1.41 billion (27.1% of AUM as of 2025-09-30)
• LEN: $1.22 billion (23.5% of AUM as of 2025-09-30)
• TOL: $770.96 million (14.9% of AUM as of 2025-09-30)
• PHM: $735.94 million (14.2% of AUM as of 2025-09-30)
• DHI: $616.49 million (11.93% of AUM as of 2025-09-30)

As of Nov. 3, 2025, Baxter shares were priced at $18.21, down 49.1% over the past year and underperforming the S&P 500 by 67.93 percentage points

Company Overview

Company Snapshot

Baxter offers a diversified portfolio of healthcare products, including dialysis therapies, infusion systems, injectable drugs, anesthesia, surgical devices, and connected care technologies. The company generates revenue primarily through the sale of medical devices, pharmaceuticals, and related services to healthcare providers and facilities worldwide. The company serves hospitals, dialysis centers, nursing homes, rehabilitation centers, physician offices, and home care patients in approximately 100 countries.

Baxter is a global healthcare company with a broad product suite spanning renal care, medication delivery, surgical solutions, and connected care technologies. The company leverages its established distribution channels and direct sales force to reach a wide range of institutional and alternate-site healthcare customers. Baxter's scale, diversified offerings, and long-standing industry presence provide a competitive foundation in the medical devices and supplies sector.

Foolish take

Baxter's stock has underperformed the broader market for several years due to several reasons, including slow revenue growth, contracting margins, increased debt from past acquisitions, manufacturing disruptions, and recall of a key product. Over the last five years, Baxter's shares have declined by 78.14%, while the benchmark S&P 500 index has gained 91.37% (as of Nov. 10, 2025).

However, Greenhaven's $143.19 million investment perhaps highlights growing confidence in a potential turnaround under the leadership of new CEO Andrew Hider. Management is prioritizing strengthening the balance sheet and targeting a three-times net leverage (net debt to EBITDA)by the end of 2026. The company is also lowering dividends to save over $300 million in annual cash flow. In case these goals are achieved, it can dramatically improve overall investor sentiment for the company.

Baxter is trading at 9.3 times forward earnings, which seems reasonable in the current overheated market. Hence, while Greenhaven's purchase does not indicate a significant shift in Baxter's fundamentals, it is worthwhile for retail investors to keep an eye on this stock in the coming year.

Glossary

Stake: The ownership interest or investment a person or entity holds in a company.
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC if they exceed a certain size.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a financial institution.
Quarterly average pricing: The average price of a security over a specific quarter, used to estimate transaction values.
Position: The amount of a particular security or investment held by an investor or fund.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
TTM: The 12-month period ending with the most recent quarterly report.
Institutional investor: An organization that invests large sums of money, such as pension funds, mutual funds, or insurance companies.
Medical devices: Instruments or machines used in the diagnosis, treatment, or monitoring of medical conditions.
Distribution channels: The pathways through which a company delivers its products to customers or end users.

Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends D.R. Horton and Lennar. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.