Exploring Varex Imaging Corporation (VREX) Investor Profile: Who’s Buying and Why?

You're looking at Varex Imaging Corporation (VREX) and wondering why the stock, with a market capitalization of roughly $438.32 million, sees such a tug-of-war among the big money, right? The simple answer is that the investor profile is defintely a study in strategic divergence, but the core story is still institutional confidence: a massive 91.31% of the company's stock is held by institutions, which is a huge block of control. We're talking about giants like Pzena Investment Management Llc, BlackRock, Inc., and Vanguard Group Inc holding significant stakes. But here's the rub: while Varex reported strong fiscal year 2025 revenues of $845 million and non-GAAP net income per diluted share of $0.90, the latest quarter saw 91 institutions add shares, but 114 actually decreased their positions, showing a real split on the near-term outlook. So, are the buyers betting on the Medical segment's growth, or are the sellers worried about the capital expenditure cycle? That's the core question we need to unpack.

Who Invests in Varex Imaging Corporation (VREX) and Why?

The investor base for Varex Imaging Corporation (VREX) is dominated by large institutional money managers, but a substantial retail presence is also a factor. These investors are largely betting on the company's turnaround story, driven by strong growth in its specialized Industrial segment and the promise of next-generation medical imaging technology.

You're looking at a company that is a critical component supplier, not a consumer-facing brand, so the investment thesis is more about market dominance in a niche. The ownership structure reflects this: it's a mix of passive index funds and active value funds looking for a multi-year recovery.

Key Investor Types and Ownership Breakdown

Institutional investors-the mutual funds, pension funds, and asset managers-hold the vast majority of Varex Imaging Corporation's stock. This is typical for a mid-cap, specialized industrial technology firm. For instance, institutional shareholders account for approximately 92.32% of the outstanding shares, according to some analyses.

However, retail investors, which includes individual accounts and smaller investment groups, hold a notable stake, estimated at around 29.88% of the stock, which is a significant figure for a company in this sector. This means individual sentiment can have a real impact on daily trading volume and price action. Insiders, like executives and board members, hold a small but important portion, around 1.64%.

The largest institutional holders are a good proxy for the general investment sentiment. BlackRock, Inc. and Vanguard Group Inc. are major shareholders, reflecting the passive investment flowing through their vast index funds. But the top holder, Pzena Investment Management LLC, with a stake of approximately 10.19%, is a value-focused firm, which points to a specific, active investment strategy.

Investment Motivations: Growth and Turnaround

Investors are attracted to Varex Imaging Corporation for two primary reasons: the company's strong, specialized market position and its recent financial turnaround. The core business is X-ray imaging components-think the tubes and digital detectors that go into CT scanners and cargo inspection systems. They are essential, high-barrier-to-entry products.

The $845 million in total revenue for the fiscal year 2025, a 4% increase year-over-year, shows stable growth. But the real story is in the segments:

• Medical Segment: Revenue of $593 million, driven by strong global CT tube demand.
• Industrial Segment: Revenue of $252 million, surging with a 25% year-over-year increase, fueled by high-value cargo inspection systems.

The turnaround is clear in the earnings. The company reported a non-GAAP net income of $0.90 per diluted share for FY 2025, which is a massive 73% rise compared to the prior year. That kind of earnings growth gets value and growth investors very interested, even if the GAAP net loss was still $(1.70) per diluted share due to non-cash items. The strong cash flow from operations, which was $42 million for the year, also provides a solid foundation for future investment and debt management.

Investment Strategies: Value, Growth, and Active Trading

The strategies employed by investors in Varex Imaging Corporation are a blend of long-term holding and active, short-term trading. You see this split in the major institutional holders.

Value and Long-Term Holding: Firms like Pzena Investment Management LLC are classic value investors. They see the stock trading at a discount to its intrinsic value, often using metrics like the forward price-to-earnings (P/E) ratio, which suggests a more favorable earnings outlook. They are willing to hold through the short-term volatility, betting on the company's strategic initiatives, such as the development of photon counting technology for CT and the expansion of radiographic detector production in India, to drive long-term growth. This long-term view aligns with the company's mission. You can read more about their core philosophy here: Mission Statement, Vision, & Core Values of Varex Imaging Corporation (VREX).

Active and Event-Driven Trading: Hedge funds, which are part of the institutional universe, show a more dynamic approach. In the third quarter of 2025, there was significant activity, with 91 institutional investors adding to their positions and 114 decreasing them. This suggests a lot of short-term conviction changes, likely based on quarterly earnings results and news about the high-value cargo system shipments. One clean one-liner: Hedge funds are trading the news, not just the fundamentals.

For you, the takeaway is clear: the market sees Varex as a defensible business that is defintely executing a successful turnaround. The next step is to monitor the Q1 2026 guidance, which projects revenues between $200 million and $215 million, to ensure the momentum continues.

Institutional Ownership and Major Shareholders of Varex Imaging Corporation (VREX)

You want to know who is buying Varex Imaging Corporation (VREX) and why, and the short answer is: the big money is already there, but it's been a nuanced story of rotation, not just accumulation. Institutional ownership-funds, pensions, endowments-is exceptionally high, hovering between 78.43% and 91.31% of the company's shares outstanding. That's a massive vote of confidence, but the recent trading activity shows a clear tug-of-war among these large players.

For a deep dive into the company's foundation, check out Varex Imaging Corporation (VREX): History, Ownership, Mission, How It Works & Makes Money. But for the money flow, here's the defintely important breakdown of the major holders and their near-term moves.

Top Institutional Investors: Who Holds the Most VREX Shares?

The investor profile for Varex Imaging Corporation (VREX) is dominated by value-focused asset managers and index funds. This tells you that the stock is viewed as either a deep-value play or a necessary component of a broader small-cap index, which is a key distinction. The top three holders alone control a significant chunk of the company, giving them considerable sway.

Here's the quick math on the top shareholders as of their most recent filings in 2025:

Notice BlackRock, Inc. and The Vanguard Group, Inc. are major players. They are primarily passive investors, meaning their stake is mostly tied to Varex Imaging Corporation (VREX) being included in large index funds like the Vanguard Total Stock Market Index Fund or iShares ETFs.

Recent Shifts: Is the Big Money Buying or Selling?

Honestly, the institutional sentiment has been mixed, but with a slight net decrease recently. In the most recent reporting quarter (Q3 2025), 91 institutional investors opened new or added to existing positions, but 114 institutions reduced their stake. The net result was a reduction of about 1.68 million shares, or a -3.40% drop in the total institutional long position. That's a small dip, but it signals some profit-taking or reallocation.

The rotation is clear when you look at the specific moves. For instance, ACADIAN ASSET MANAGEMENT LLC aggressively added 519,828 shares-a massive 205.8% increase-in Q3 2025, betting on the upside. But then you have firms like WELLINGTON MANAGEMENT GROUP LLP removing a huge block of 1,545,829 shares in Q2 2025. This push-and-pull suggests active managers are debating Varex Imaging Corporation's (VREX) valuation after its strong fiscal year 2025 performance.

• Buyers are likely focused on the Industrial segment's 25% revenue increase in Q4 2025.
• Sellers might be concerned about the full fiscal year 2025 GAAP net loss of $(1.70) per diluted share.

It's a classic battle between non-GAAP operational strength and GAAP accounting reality.

The Impact of Institutional Investors on Varex Imaging Corporation's Strategy

When institutions own this much of a company, they don't just affect the stock price; they influence the company's direction. Their sheer size means their buying and selling creates price volatility, which is why Varex Imaging Corporation (VREX) has a high volatility measure. But more importantly, they are the primary audience for management's strategic decisions.

Here's what their high ownership means for Varex Imaging Corporation (VREX):

• Capital Structure Scrutiny: With the company reporting a net debt of $215 million at the end of fiscal year 2025, institutions are pushing for capital efficiency.
• Focus on Non-GAAP Metrics: The company's emphasis on non-GAAP metrics-like the non-GAAP EPS of $0.90 for fiscal year 2025-is a direct response to institutional investors who want to see the underlying operating profit, stripped of non-cash charges like the goodwill impairment.
• Strategic Alignment: Large shareholders like Pzena Investment Management, Inc. will pressure management to focus on high-growth areas. This aligns with Varex Imaging Corporation's (VREX) recent push into innovative technologies like photon counting for CT and the launch of a new radiographic detector, which are key growth initiatives.

The high institutional ownership acts as a governance mechanism. They want to see the company convert its $845 million in fiscal year 2025 revenue into sustainable, predictable profit. So, their buying and selling isn't just a market signal-it's a direct commentary on the execution of the strategy. Finance: draft a memo on the Q3 2025 institutional rotation by Friday.

Key Investors and Their Impact on Varex Imaging Corporation (VREX)

You need to know who is holding Varex Imaging Corporation (VREX) because their conviction drives the stock, and right now, the smart money is betting on the long-term technology story, even with near-term volatility. Institutional ownership is exceptionally high, sitting at roughly 95.51% of the float, which signals a deep level of confidence from major funds in the company's core business and strategic direction.

The investor profile is dominated by value and index managers who see the X-ray component market as a stable, essential infrastructure play in healthcare and security. The largest shareholders include heavy hitters like Pzena Investment Management Llc, BlackRock, Inc., and The Vanguard Group, Inc. These are not quick-money traders; they are long-haul investors whose large stakes mean they often have a direct line to management, influencing capital allocation and strategic focus, particularly around key growth areas like photon counting technology.

Here's the quick math on the top institutional holders, based on filings from the first half of 2025:

Recent Moves: The Buy/Sell Divergence in 2025

The most telling moves came in the second and third quarters of fiscal year 2025, illustrating a clear divergence in investor sentiment. While Varex Imaging Corporation reported a full-year 2025 revenue of $845 million and non-GAAP EPS of $0.90, the market was digesting a significant non-cash goodwill impairment charge in Q3 2025. This caused some major funds to exit, but others saw a buying opportunity. Wellington Management Group LLP, for instance, removed a massive 1,545,829 shares in Q2 2025. J. Goldman & Co LP also removed 558,032 shares in Q3 2025.

But the real signal for a trend-aware realist like you is who stepped in. Hedge funds and quantitative players, which are defintely more nimble, took the other side of that trade. Acadian Asset Management LLC added 519,828 shares, a huge 205.8% increase in Q3 2025. Also, Millennium Management LLC added 497,650 shares, boosting their position by 119.8% in the same quarter. They are buying into the narrative that the Industrial segment's cargo systems momentum, which saw a 25% increase in Q4 2025 revenue, and the company's push into advanced technologies like photon counting for CT will pay off. They are looking past the GAAP net loss of $(1.70) per diluted share for the full fiscal year 2025, focusing instead on the strong non-GAAP EBITDA growth of 37% to $122 million.

Investor Influence: Why They Buy and How They Impact

These large institutional holders exert influence by setting the valuation floor and demanding clarity on strategic growth pillars. They are buying Varex Imaging Corporation for two main reasons:

• Medical Infrastructure Stability: The Medical segment, which contributed $152 million in Q4 2025 revenue, provides a reliable, recurring revenue stream from essential X-ray components like CT tubes.
• Industrial Growth Story: The Industrial segment's success in cargo inspection systems, securing over $55 million in orders in fiscal year 2025, offers a high-growth, high-margin counter-balance to the steady Medical business.

What this estimate hides is the risk of the China Ministry of Commerce (MOFCOM) investigations, which Varex Imaging Corporation noted could impact their X-ray tube imports into China, a market that represented about 10% of total revenue in fiscal year 2025. The large institutional base, however, seems to be signaling that the company's diversification and innovation, including the new radiographic detector launch from their India facility, are enough to mitigate this geopolitical risk. For a deeper dive into the company's long-term vision, you should review the Mission Statement, Vision, & Core Values of Varex Imaging Corporation (VREX).

Next Step: Track the next 13F filings (due mid-February 2026) for BlackRock, Inc. and The Vanguard Group, Inc. to confirm if their conviction held through the Q4 2025 earnings beat.

Market Impact and Investor Sentiment

You're looking at Varex Imaging Corporation (VREX) and seeing a stock with high institutional ownership but a recent market dip. The direct takeaway is this: Major investors remain generally positive, holding over 95% of the float, but the market is reacting sharply to mixed financial signals and cautious near-term guidance.

The sentiment from large, sophisticated investors is defintely leaning toward long-term value, as evidenced by the massive institutional ownership of approximately 95.51% as of late 2025. This is not a stock driven by retail traders; it's a portfolio staple for big money, including firms like BlackRock, Inc. and Vanguard Group Inc. These institutions are buying and holding because they see the core business-X-ray imaging components for medical and industrial use-as a critical, non-cyclical technology, especially the long-term potential in their photon counting technology. You can read more about their strategic direction here: Mission Statement, Vision, & Core Values of Varex Imaging Corporation (VREX).

Who's Buying: The Institutional Confidence

The investor profile is dominated by passive index funds and active value managers. The fact that BlackRock, Inc. and Vanguard Group Inc. are among the largest shareholders suggests a foundational belief in the company's market position. However, the recent hedge fund activity shows a classic divergence, which is a key risk to map.

Here's the quick math on recent hedge fund moves in the second and third quarters of 2025:

• ACADIAN ASSET MANAGEMENT LLC: Added 519,828 shares, a massive increase of over 205%, signaling a strong conviction buy.
• MILLENNIUM MANAGEMENT LLC: Increased its position by nearly 120%, adding 497,650 shares.
• WELLINGTON MANAGEMENT GROUP LLP: Exited completely, removing over 1.5 million shares.

When you see a major firm like Wellington Management Group LLP liquidate their entire position of 1,545,829 shares, it tells you some large players are cashing out, maybe due to a change in their investment thesis or a portfolio rebalancing. Still, the new money coming in from other large funds suggests a clear split on the near-term outlook versus the long-term strategic value. Insider activity, though minor in volume, has also been all sales, which is a small red flag you can't ignore.

Recent Market Reactions to Earnings and Ownership

The stock market has been volatile around Varex Imaging Corporation's earnings announcements. For the fiscal year 2025, the company reported total revenue of $845 million, a 4% increase year-over-year, and non-GAAP earnings per share (EPS) of $0.90, a strong 73% jump from the prior year. That's a good year, but the market is focused on the future and the GAAP net loss of $(1.70) per diluted share.

The stock initially rose about 2% in after-hours trading following the Q4/FY2025 earnings beat on November 18, 2025, but then it dropped sharply, declining 13.28% the next day. Why the plunge despite the revenue beat? The cautious guidance for Q1 2026, which projected revenues between $200 million and $215 million, signaled underlying pressure in the medical components business, and that spooked investors. The market is a forward-looking machine, and soft guidance trumps historical performance almost every time.

Analyst Perspectives: Bullish Targets vs. Price Reality

Analyst sentiment remains largely favorable, even with the stock's recent volatility. The consensus rating is generally a 'Buy' or 'Outperform,' reflecting confidence in the company's strategic direction and its non-GAAP EBITDA growth of 37% to $122 million in FY2025.

The average analyst price target sits around $17.80, with a high estimate of $23.00. This implies a significant potential upside from the current price, but you must be a realist. Oppenheimer recently lowered their price target from $23.00 to $18.00 in November 2025, which shows a tempering of expectations. B. Riley Securities, while maintaining a 'Buy' rating, has a more conservative target of $16.00. The analysts are betting on the company's ability to convert its technological edge-like the $55 million in Industrial segment orders-into consistent profit and cash flow.

Here's a snapshot of the forward-looking analyst view:

The key for you is to watch their cash flow from operations, which was $42 million for FY2025, and see if they can maintain that momentum while navigating the Q1 2026 slowdown. The large institutional base is a floor for the stock, but the cautious guidance is the ceiling right now. Your next step should be to model a scenario where the Q1 2026 revenue is at the low end of their $200 million to $215 million guidance range to stress-test your investment thesis.