Should You Hold Your Stake in Perrigo Company, plc (PRGO)?

Core Insights - Meridian Contrarian Fund reported a 6.72% net return in Q3 2025, underperforming the Russell 2500 Index which returned 9.00% and the Russell 2500 Value Index at 8.18% [1] - The fund's performance was influenced by record high equities, driven by technology gains and falling bond yields, alongside easing tariff rhetoric and renewed AI infrastructure investments [1] Company Analysis: Perrigo Company plc (NYSE:PRGO) - Perrigo Company plc is a leading provider of over-the-counter health and wellness solutions, but its stock has faced significant declines, with a one-month return of -34.97% and a 52-week loss of 53.13% [2] - As of November 28, 2025, Perrigo's stock closed at $13.35, with a market capitalization of $1.837 billion [2] - The company has struggled with declining earnings due to poor capital allocation by previous management, which focused on acquisitions outside its core business [3] - A new management team is now focused on realistic growth within the core business, aiming for improved profitability and returns on capital [3] - Despite recent underperformance, the company continues to be held in the fund's portfolio, although earnings guidance has been lowered due to challenges in the recovering infant formula business [3] Investment Sentiment - Perrigo Company plc is not among the 30 most popular stocks among hedge funds, with 22 hedge fund portfolios holding the stock at the end of Q3 2025, unchanged from the previous quarter [4] - While acknowledging Perrigo's potential, the fund suggests that certain AI stocks may offer greater upside potential and less downside risk [4]