Heartland Value Fund is Monitoring Dentsply Sirona (XRAY) Amid a Deep Discount

Heartland Advisors, an investment management company, released its “Heartland Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Small-cap companies started to rebound in the quarter, with the Heartland Value Fund gaining 10.04% compared to a 12.60% return for the Russell 2000® Value Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Heartland Value Fund highlighted stocks such as Dentsply Sirona Inc. (NASDAQ:XRAY). Dentsply Sirona Inc. (NASDAQ:XRAY) is a global manufacturer and distributor of various dental products and technologies. The one-month return of Dentsply Sirona Inc. (NASDAQ:XRAY) was -12.63%, and its shares lost 51.58% of their value over the last 52 weeks. On October 10, 2025, DENTSPLY SIRONA Inc. (NASDAQ:XRAY) stock closed at $11.83 per share, with a market capitalization of $2.36 billion.

Heartland Value Fund stated the following regarding DENTSPLY SIRONA Inc. (NASDAQ:XRAY) in its third quarter 2025 investor letter:

“Last quarter, we discussed how management at DENTSPLY SIRONA Inc. (NASDAQ:XRAY), one of the world’s leading suppliers of dental equipment and supplies, had been laying the groundwork for a turnaround for more than two years. Those efforts had yet to be reflected in the stock price.

In the third quarter, CEO Simon Campion stepped down after three years at the helm and was replaced by Daniel Scavilla. Under Campion, XRAY focused on SKU rationalization and other cost initiatives but failed to keep up with its peers in terms of top-line growth. CEO Scavilla has a record of sales success at Globus Medical Inc. and Johnson & Johnson. We are encouraged by his initial strategies to arm the sales force better to go to market with the company’s existing portfolio and near-term goals to improve margins and free cash flows.

Dentsply was among the Fund’s worst performers for the quarter, however trading at 6.7X estimated earnings, its valuation seems extremely discounted. Thus we will remain patient and sit tight with the position believing that the upside potential far outweighs the downside risk. However, our patience has a limit, and we will closely monitor XRAY’s progress.”

Is DENTSPLY SIRONA Inc. (XRAY) The Most Undervalued Stock With Smart Money Ratings?

DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 38 hedge fund portfolios held DENTSPLY SIRONA Inc. (NASDAQ:XRAY) at the end of the second quarter, compared to 40 in the previous quarter.  While we acknowledge the risk and potential of DENTSPLY SIRONA Inc. (NASDAQ:XRAY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DENTSPLY SIRONA Inc. (NASDAQ:XRAY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered DENTSPLY SIRONA Inc. (NASDAQ:XRAY) and shared the list of best robotics stocks to buy under $20. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.