Diamond Hill Capital Management Inc. Has $316.14 Million Position in Labcorp Holdings Inc. $LH

Key Points

• Diamond Hill Capital Management cut its Labcorp stake by 23.3% in the fourth quarter, though it still held 1.26 million shares worth about $316.1 million and made Labcorp its 20th-largest position.
• Labcorp reported better-than-expected quarterly results, with EPS of $4.25 versus estimates of $4.09 and revenue of $3.54 billion versus $3.51 billion expected. The company also raised its FY2026 guidance to 17.70–18.35 EPS.
• The company declared a quarterly dividend of $0.72 per share, payable June 11, and analysts remain largely positive with an average Moderate Buy rating and a $308 average price target.

Diamond Hill Capital Management Inc. trimmed its holdings in shares of Labcorp Holdings Inc. (NYSE:LH - Free Report) by 23.3% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,260,116 shares of the medical research company's stock after selling 382,125 shares during the period. Labcorp makes up about 1.6% of Diamond Hill Capital Management Inc.'s holdings, making the stock its 20th biggest position. Diamond Hill Capital Management Inc. owned approximately 1.52% of Labcorp worth $316,138,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. UBS Group AG grew its stake in Labcorp by 2.2% in the fourth quarter. UBS Group AG now owns 495,535 shares of the medical research company's stock valued at $124,320,000 after purchasing an additional 10,706 shares in the last quarter. Dakota Wealth Management raised its stake in shares of 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 purchasing an additional 5,116 shares in the last quarter. Independent Advisor Alliance lifted its holdings in shares of Labcorp by 166.6% during the 3rd quarter. Independent Advisor Alliance now owns 12,111 shares of the medical research company's stock valued at $3,477,000 after buying an additional 7,568 shares during the last quarter. New York State Common Retirement Fund grew its stake in shares of Labcorp by 12.0% in the 3rd quarter. New York State Common Retirement Fund now owns 44,795 shares of the medical research company's stock valued at $12,859,000 after buying an additional 4,800 shares in the last quarter. Finally, Cinctive Capital Management LP bought a new stake in shares of Labcorp in the 3rd quarter valued at approximately $3,297,000. Institutional investors and hedge funds own 95.94% of the company's stock.

Insider Transactions at Labcorp

In related news, EVP Brian J. Caveney sold 1,500 shares of the business's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $286.31, for a total transaction of $429,465.00. Following the completion of the transaction, the executive vice president owned 30,107 shares of the company's stock, valued at approximately $8,619,935.17. The trade was a 4.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Der Vaart Sandra D. Van sold 548 shares of the stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $284.91, for a total value of $156,130.68. Following the sale, the executive vice president owned 2,579 shares of the company's stock, valued at approximately $734,782.89. The trade was a 17.52% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 16,656 shares of company stock worth $4,524,961. Company insiders own 0.84% of the company's stock.

Labcorp Trading Down 0.7%

Shares of LH stock opened at $255.70 on Friday. Labcorp Holdings Inc. has a 12 month low of $239.75 and a 12 month high of $293.72. The company has a market cap of $20.97 billion, a PE ratio of 22.65, a price-to-earnings-growth ratio of 1.80 and a beta of 0.91. The company has a quick ratio of 1.54, a current ratio of 1.73 and a debt-to-equity ratio of 0.68. The business's 50 day moving average is $263.99 and its two-hundred day moving average is $265.59.

Labcorp (NYSE:LH - Get Free Report) last posted its quarterly earnings data 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. The business had revenue of $3.54 billion during the quarter, compared to the consensus estimate of $3.51 billion. Labcorp had a net margin of 6.66% and a return on equity of 16.29%. Labcorp's quarterly revenue was up 5.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.84 EPS. Labcorp has set its FY 2026 guidance at 17.700-18.350 EPS. Equities analysts predict that Labcorp Holdings Inc. will post 17.99 EPS for the current year.

Labcorp Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Friday, May 29th will be given a $0.72 dividend. This represents a $2.88 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, May 29th. Labcorp's dividend payout ratio (DPR) is currently 25.51%.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Wall Street Zen raised shares of Labcorp from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Weiss Ratings restated a "buy (b-)" rating on shares of Labcorp in a research note on Friday, May 8th. Evercore restated an "outperform" rating and set a $300.00 price target on shares of Labcorp in a report on Wednesday, April 8th. JPMorgan Chase & Co. lifted their price objective on shares of Labcorp from $319.00 to $330.00 and gave the company an "overweight" rating in a research note on Wednesday, February 18th. Finally, Piper Sandler upped their price objective on shares of Labcorp from $270.00 to $300.00 and gave the stock a "neutral" rating in a report on Tuesday, February 24th. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target 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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