SCHEDULE: T. Rowe Price Discloses Stake in Avanos Medical

T. Rowe Price Investment Management, Inc. has filed a Schedule 13G, reporting beneficial ownership of 11.5% of Avanos Medical Inc.'s common stock as of March 31, 2026.

Summary

• T. Rowe Price Investment Management, Inc. has reported a significant ownership stake in Avanos Medical Inc.
• As of March 31, 2026, the firm beneficially owns 5,330,776 shares of Avanos Medical's common stock.
• This represents 11.5% of the total class of securities.
• The filing is an amendment to a previous Schedule 13G, indicating a change in reporting status or holdings.
• T. Rowe Price Investment Management, Inc. acts as an investment adviser for various clients, including T. Rowe Price Small-Cap Value Fund, which holds a substantial portion of these shares.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, indicating significant institutional interest without explicit commentary on company performance or activist intent.

Positives

• T. Rowe Price Investment Management, Inc. has increased its stake or is reporting a significant holding, which could indicate confidence in Avanos Medical's future prospects.
• The T. Rowe Price Small-Cap Value Fund holds 2,839,254 shares, representing 6.1% of the class, suggesting a focused investment within this fund.
• The filing confirms that T. Rowe Price Investment Management, Inc. is acting in its capacity as an investment adviser, managing assets for clients.

Negatives

• The filing does not contain specific financial performance data for Avanos Medical Inc., making it difficult to assess the underlying business health.
• The nature of the filing (Schedule 13G) suggests it's a passive investment disclosure rather than an activist stake, which might limit immediate impact on company strategy.

Risks

• The filing does not explicitly mention any risks associated with Avanos Medical Inc.'s business operations or the investment itself.
• Potential risks for T. Rowe Price Investment Management, Inc. could include market volatility affecting the value of its clients' holdings in Avanos Medical.

Future Outlook

The filing itself does not contain forward-looking statements or guidance from Avanos Medical Inc. It is a disclosure of ownership by T. Rowe Price Investment Management, Inc.

Management Comments

• T. Rowe Price Investment Management, Inc. states that it does not serve as custodian of client assets, and clients or their custodians/trustees have the right to receive dividends and sale proceeds.
• The ultimate power to direct dividends and sale proceeds is vested in the individual and institutional clients served as investment adviser.
• Any discretionary authority delegated to Price Investment Management may be revoked at any time.
• T. Rowe Price Investment Management, Inc. expressly denies beneficial ownership of the securities for the purpose of changing or influencing control of the issuer.

Industry Context

StockSavvy.ai notes that significant institutional ownership, as reported by T. Rowe Price, often signals a level of confidence in a company's long-term strategy and market position within the healthcare and medical device sector.

Stakeholder Impact

• Shareholders: The increased or reported significant stake by a major institutional investor like T. Rowe Price may be viewed positively, potentially increasing investor confidence.
• Clients of T. Rowe Price Investment Management, Inc.: Their investment portfolios are managed by the firm, with the firm exercising investment discretion.
• Avanos Medical Inc. Management and Board: While not an activist filing, significant institutional ownership can influence board dynamics and strategic considerations over time.

Next Steps

• T. Rowe Price Investment Management, Inc. will continue to manage the investment portfolio for its clients.
• Avanos Medical Inc. will continue its business operations, subject to market conditions and strategic execution.

Key Dates

Keywords

Avanos Medical, T. Rowe Price, Schedule 13G, Beneficial Ownership, Investment Management, Common Stock, Securities Filing, Institutional Investor, Healthcare, Medical Devices