On December 31, 2024, T. Rowe Price Investment Management, Inc. (Trades, Portfolio) executed a notable transaction by acquiring an additional 644,267 shares of Avanos Medical Inc. This acquisition increased the firm's total holdings in Avanos Medical to 3,011,312 shares. The transaction was carried out at a price of $15.92 per share, reflecting a strategic move to bolster the firm's investment in the medical devices sector. This addition represents a 0.01% impact on the firm's extensive portfolio, which is valued at $162.11 billion.
About T. Rowe Price Investment Management, Inc. (Trades, Portfolio)
T. Rowe Price Investment Management, Inc. (Trades, Portfolio), headquartered in Baltimore, Maryland, is a distinguished investment firm known for its focus on value investing. The firm manages a substantial equity portfolio, with top holdings in major companies such as Amazon.com Inc., Microsoft Corp., and NVIDIA Corp. With a strong emphasis on the technology and healthcare sectors, T. Rowe Price continues to demonstrate its commitment to identifying and investing in high-potential opportunities. The firm's strategic approach and robust portfolio management have solidified its reputation in the investment community.
Overview of Avanos Medical Inc.
Avanos Medical Inc., based in the United States, is a prominent player in the medical devices industry. The company specializes in developing and selling medical devices and related services on a global scale. Avanos operates in key segments such as Digestive Health, Interventional Pain, and Surgical Pain and Recovery. With a market capitalization of $755.994 million, Avanos Medical is focused on providing innovative solutions to healthcare providers and patients. The company's strategic restructuring into a single commercial organization underscores its commitment to enhancing its product offerings and market presence.
Transaction Analysis and Impact
The recent acquisition by T. Rowe Price was executed at a price of $15.92 per share, with the firm's holdings in Avanos Medical now representing 6.60% of the total shares. The current position of Avanos Medical in the firm's portfolio is 0.03%. Since the transaction, Avanos Medical's stock price has increased by 3.33%, indicating a positive market response. However, the stock's [GF Value](https://www.gurufocus.com/term/gf-value/AVNS) of 25.58 suggests a possible value trap, urging investors to exercise caution.
Financial Metrics and Valuation
Avanos Medical Inc. presents a [price-to-earnings ratio](https://www.gurufocus.com/term/pe/AVNS) of 48.38, which may raise concerns about its valuation. The company's [GF Score](https://www.gurufocus.com/term/gf-score/AVNS) of 70/100 indicates poor future performance potential. Despite a [balance sheet rank](https://www.gurufocus.com/term/rank-balancesheet/AVNS) of 7/10, the [profitability rank](https://www.gurufocus.com/term/rank-profitability/AVNS) stands at 5/10, and the [growth rank](https://www.gurufocus.com/term/rank-growth/AVNS) is 3/10, reflecting challenges in achieving robust growth.
Performance and Growth Indicators
Avanos Medical's financial health is further highlighted by its [interest coverage](https://www.gurufocus.com/term/interest-coverage/AVNS) of 2.64 and an [Altman Z score](https://www.gurufocus.com/term/zscore/AVNS) of 1.49, indicating potential financial distress. The company's [Piotroski F-Score](https://www.gurufocus.com/term/fscore/AVNS) of 7 suggests moderate financial strength. Despite these metrics, the company's [operating margin](https://www.gurufocus.com/term/operating-margin/AVNS) growth remains stagnant, and its revenue growth over the past three years has been negative.
Other Notable Investors in Avanos Medical Inc.
Gotham Asset Management, LLC is currently the largest holder of Avanos Medical shares among investment firms. Additionally, Barrow, Hanley, Mewhinney & Strauss also hold significant positions in the company, indicating a broader interest from multiple investment entities. This diverse interest underscores the potential seen by various investors in Avanos Medical's strategic initiatives and market positioning.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
