Envista Holdings announces $250 million stock buyback

In a move to enhance shareholder value, Envista Holdings Corp (NYSE:NVST), a company specializing in dental equipment and supplies with a market capitalization of $3.55 billion, announced on Monday a stock repurchase program authorizing the buyback of up to $250 million of its outstanding common stock. The program is set to run through December 31, 2026. According to InvestingPro analysis, the company maintains a healthy liquidity position with a current ratio of 2.08, indicating strong ability to fund such initiatives.

The repurchase plan allows Envista Holdings to buy back shares depending on market conditions and other factors, acting at times and volumes it deems fit. These repurchases can be carried out in the open market, through privately negotiated transactions, or via an accelerated stock repurchase program, all in compliance with federal securities laws and other legal requirements.

This strategic decision by the company’s Board of Directors reflects a common practice among corporations aiming to return capital to shareholders and potentially boost the stock price by reducing the number of shares outstanding. The move comes as InvestingPro data shows the company generating a robust free cash flow yield of 7.7%, suggesting financial flexibility for such shareholder-friendly initiatives. InvestingPro subscribers can access 6 additional key insights about Envista’s financial health and valuation metrics.

Envista Holdings has not specified a definite schedule for the buybacks, indicating that the timing and amount of repurchases will be determined by market conditions. The company may also utilize a trading plan under Rule 10b5-1 to execute repurchases, which allows companies to buy back shares at times when they might otherwise be prevented from doing so under insider trading laws.

The announcement is based on a press release statement and is intended to provide current information to investors regarding Envista Holdings’ financial decisions. While currently not profitable, analysts tracked by InvestingPro expect the company to return to profitability in 2024, with projected earnings per share of $0.72. The company’s commitment to shareholder returns is evident in this new stock repurchase program, which is part of Envista Holdings’ broader financial strategy. Detailed analysis and comprehensive research reports for Envista, along with 1,400+ other US stocks, are available exclusively on InvestingPro.

Envista Holdings, headquartered in Brea, California, operates under the name 08 Industrial Applications and Services and is incorporated in Delaware. The company’s fiscal year ends on December 31.

In other recent news, Envista Holdings Corp. has been the subject of analyst attention. Piper Sandler analyst Jason Bednar increased the stock’s price target to $18, maintaining a neutral rating. Bednar anticipates Envista’s fourth-quarter results to slightly exceed expectations and foresees further evidence of progress in the company’s turnaround efforts. However, he noted a potential delay in revenue acceleration and margin improvement due to a slower recovery in the premium and higher-end segments of the dentistry market.

In a separate development, Mizuho (NYSE:MFG) Securities initiated coverage of Envista with an underperform rating and a price target of $20. The firm’s analysis points to challenges such as soft global dental end-markets impacting the company’s performance. Despite these challenges, Envista’s stock has outperformed others in its sector. Mizuho Securities also highlighted recent C-suite changes at Envista, potentially laying the groundwork for EPS growth in 2025 and 2026. These are among the recent developments in Envista’s business landscape.

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