Contravisory Investment Management Inc. Reduces Holdings in Labcorp Holdings Inc. $LH

Key Points

• Contravisory Investment Management cut its Labcorp stake by 12.9% in the first quarter, selling 4,624 shares and leaving it with 31,179 shares valued at about $8.3 million.
• Labcorp posted solid quarterly results, with EPS of $4.25 topping estimates and revenue of $3.54 billion beating expectations; revenue also rose 5.8% year over year.
• Insider selling and mixed analyst sentiment were notable, as the CEO and an EVP both sold shares under 10b5-1 plans, while analysts currently rate the stock “Moderate Buy” with an average price target of $308.

Contravisory Investment Management Inc. decreased its position in shares of Labcorp Holdings Inc. (NYSE:LH - Free Report) by 12.9% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 31,179 shares of the medical research company's stock after selling 4,624 shares during the quarter. Labcorp makes up about 1.7% of Contravisory Investment Management Inc.'s holdings, making the stock its 27th largest position. Contravisory Investment Management Inc.'s holdings in Labcorp were worth $8,319,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in LH. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Labcorp in the 4th quarter valued at about $26,000. Hilton Head Capital Partners LLC acquired a new position in shares of Labcorp in the fourth quarter valued at approximately $27,000. JPL Wealth Management LLC purchased a new stake in shares of Labcorp during the third quarter worth approximately $28,000. Eagle Bay Advisors LLC purchased a new position in Labcorp during the 4th quarter worth $29,000. Finally, DV Equities LLC acquired a new stake in Labcorp in the fourth quarter valued at about $29,000. Institutional investors and hedge funds own 95.94% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently commented on LH shares. Weiss Ratings reissued a "buy (b-)" rating on shares of Labcorp in a report on Friday, May 8th. Wall Street Zen downgraded shares of Labcorp from a "buy" rating to a "hold" rating in a report on Saturday, June 13th. Robert W. Baird set a $334.00 price target on shares of Labcorp in a research report on Friday, May 1st. Finally, Evercore reissued an "outperform" rating and set a $300.00 price objective on shares of Labcorp in a research note on Wednesday, April 8th. Eight analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $308.00.

Insider Buying and Selling at Labcorp

In other news, EVP Kathryn W. Kyle sold 762 shares of the business's stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $263.89, for a total value of $201,084.18. Following the completion of the sale, the executive vice president owned 3,813 shares of the company's stock, valued at approximately $1,006,212.57. The trade was a 16.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Adam H. Schechter sold 5,903 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $254.50, for a total value of $1,502,313.50. Following the completion of the sale, the chief executive officer owned 107,234 shares of the company's stock, valued at $27,291,053. This trade represents a 5.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.84% of the stock is owned by company insiders.

Labcorp Stock Performance

Labcorp stock opened at $266.56 on Friday. The firm has a market capitalization of $21.86 billion, a P/E ratio of 23.61, a PEG ratio of 1.86 and a beta of 0.90. The stock has a fifty day moving average price of $260.87 and a 200 day moving average price of $265.44. Labcorp Holdings Inc. has a 52 week low of $241.81 and a 52 week high of $293.72. 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 released its earnings results on Thursday, April 30th. The medical research company reported $4.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.09 by $0.16. Labcorp had a net margin of 6.66% and a return on equity of 16.29%. The business had revenue of $3.54 billion for the quarter, compared to analysts' expectations of $3.51 billion. During the same period last year, the company earned $3.84 earnings per share. The company's quarterly revenue was up 5.8% on a year-over-year basis. Labcorp has set its FY 2026 guidance at 17.700-18.350 EPS. Equities research analysts anticipate that Labcorp Holdings Inc. will post 18 earnings per share for the current year.

Labcorp Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 11th. Investors of record on Friday, May 29th were issued a $0.72 dividend. The ex-dividend date of this dividend was Friday, May 29th. This represents a $2.88 dividend on an annualized basis and a yield of 1.1%. Labcorp's dividend payout ratio is currently 25.51%.

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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