Bank of New York Mellon Corp Sells 1,197,606 Shares of Labcorp Holdings Inc. $LH

Key Points

• Bank of New York Mellon cut its Labcorp stake by 67.6% in the fourth quarter, selling 1,197,606 shares and leaving it with 573,923 shares worth about $144 million.
• Labcorp reported better-than-expected first-quarter results, earning $4.25 per share on revenue of $3.54 billion, both above analyst estimates. Revenue rose 5.8% from a year earlier.
• The company announced a quarterly dividend of $0.72 per share, payable June 11, and analysts currently rate the stock a Moderate Buy with a consensus price target of $308.

Bank of New York Mellon Corp lessened its stake in Labcorp Holdings Inc. (NYSE:LH - Free Report) by 67.6% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 573,923 shares of the medical research company's stock after selling 1,197,606 shares during the period. Bank of New York Mellon Corp owned about 0.69% of Labcorp worth $143,986,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. UBS Group AG raised its stake in Labcorp by 2.2% during the 4th quarter. UBS Group AG now owns 495,535 shares of the medical research company's stock worth $124,320,000 after buying an additional 10,706 shares during the period. Dakota Wealth Management raised its stake in Labcorp by 98.6% during the 3rd quarter. Dakota Wealth Management now owns 10,303 shares of the medical research company's stock worth $2,958,000 after buying an additional 5,116 shares during the period. Cinctive Capital Management LP acquired a new position in Labcorp during the 3rd quarter worth approximately $3,297,000. 8 Knots Management LLC raised its stake in Labcorp by 96.6% during the 3rd quarter. 8 Knots Management LLC now owns 204,859 shares of the medical research company's stock worth $58,807,000 after buying an additional 100,675 shares during the period. Finally, Persistent Asset Partners Ltd raised its stake in Labcorp by 90.0% during the 3rd quarter. Persistent Asset Partners Ltd now owns 8,994 shares of the medical research company's stock worth $2,582,000 after buying an additional 4,260 shares during the period. 95.94% of the stock is owned by institutional investors and hedge funds.

Labcorp Price Performance

Shares of NYSE LH opened at $265.80 on Friday. The stock has a fifty day simple moving average of $262.75 and a two-hundred day simple moving average of $265.62. Labcorp Holdings Inc. has a 1-year low of $241.81 and a 1-year high of $293.72. The firm has a market cap of $21.80 billion, a price-to-earnings ratio of 23.54, a price-to-earnings-growth ratio of 1.86 and a beta of 0.90. The company has a current ratio of 1.73, a quick ratio of 1.54 and a debt-to-equity ratio of 0.68.

Labcorp (NYSE:LH - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The medical research company reported $4.25 earnings per share for the quarter, beating the consensus estimate of $4.09 by $0.16. Labcorp had a return on equity of 16.29% and a net margin of 6.66%.The business had revenue of $3.54 billion during the quarter, compared to analyst estimates of $3.51 billion. During the same period in the prior year, the company earned $3.84 earnings per share. Labcorp's revenue was up 5.8% compared to the same quarter last year. Labcorp has set its FY 2026 guidance at 17.700-18.350 EPS. Analysts anticipate that Labcorp Holdings Inc. will post 18 earnings per share for the current year.

Labcorp Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Friday, May 29th will be given a dividend of $0.72 per share. The ex-dividend date is Friday, May 29th. This represents a $2.88 annualized dividend and a dividend yield of 1.1%. Labcorp's dividend payout ratio is currently 25.51%.

Insider Activity

In related news, CEO Adam H. Schechter sold 5,903 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $254.50, for a total value of $1,502,313.50. Following the sale, the chief executive officer owned 107,234 shares in the company, valued at approximately $27,291,053. This trade represents a 5.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.84% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently weighed in on LH shares. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Labcorp in a research note on Friday, May 8th. Robert W. Baird set a $334.00 price objective on Labcorp in a report on Friday, May 1st. Evercore reaffirmed an "outperform" rating and issued a $300.00 target price on shares of Labcorp in a report on Wednesday, April 8th. Morgan Stanley reaffirmed an "overweight" rating on shares of Labcorp in a report on Tuesday, February 17th. Finally, Piper Sandler upped their target price on Labcorp from $270.00 to $300.00 and gave the company a "neutral" rating in a report on Tuesday, February 24th. Eight investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Labcorp has an average rating of "Moderate Buy" and a consensus target price of $308.00.

Labcorp Profile

Laboratory Corporation of America Holdings, commonly known as Labcorp NYSE: LH, is a global life sciences company that provides comprehensive clinical laboratory and drug development services. The company operates a broad network of laboratories, patient service centers and specialty testing sites to deliver diagnostic information and testing solutions that support patient care, clinical decision-making and population health initiatives.

Labcorp's core businesses encompass clinical laboratory testing and pharmaceutical development services.

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