Entropy Technologies LP Makes New Investment in Labcorp Holdings Inc. $LH

Key Points

• Entropy Technologies LP initiated a new position in Labcorp Holdings, buying 16,872 shares valued at about $4.23 million in the fourth quarter.
• Institutional ownership remains heavy, with 95.94% of Labcorp shares held by institutions; several other funds also added to or established positions recently.
• Labcorp executives have been selling stock, including CEO Adam H. Schechter and EVP Kathryn W. Kyle, while analysts remain broadly positive with an average Moderate Buy rating and a consensus price target of $308.

Entropy Technologies LP purchased a new position in Labcorp Holdings Inc. (NYSE:LH - Free Report) during the 4th quarter, according to its most recent disclosure with the SEC. The fund purchased 16,872 shares of the medical research company's stock, valued at approximately $4,233,000.

Several other institutional investors also recently added to or reduced their stakes in the business. Brown Advisory Inc. increased its position in Labcorp by 6.4% in the 4th quarter. Brown Advisory Inc. now owns 76,745 shares of the medical research company's stock worth $19,254,000 after buying an additional 4,614 shares during the period. Atlas Capital Advisors Inc. bought a new position in Labcorp in the 4th quarter worth approximately $963,000. Aptus Capital Advisors LLC increased its position in Labcorp by 7.3% in the 4th quarter. Aptus Capital Advisors LLC now owns 2,183 shares of the medical research company's stock worth $548,000 after buying an additional 149 shares during the period. Alamea Verwaltungs GmbH bought a new position in Labcorp in the 4th quarter worth approximately $730,000. Finally, Prosight Management LP bought a new position in Labcorp in the 4th quarter worth approximately $8,663,000. 95.94% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other Labcorp news, CEO Adam H. Schechter sold 5,903 shares of the company's 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 directly owned 107,234 shares in the company, valued at $27,291,053. This represents a 5.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kathryn W. Kyle sold 762 shares of the company's stock in a transaction on 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 in the company, valued at $1,006,212.57. This trade represents a 16.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.84% of the company's stock.

Analysts Set New Price Targets

Several research analysts have commented on the company. Evercore reaffirmed an "outperform" rating and issued a $300.00 price target on shares of Labcorp in a research report on Wednesday, April 8th. Piper Sandler lifted their price target on Labcorp from $270.00 to $300.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 24th. Weiss Ratings restated a "buy (b-)" rating on shares of Labcorp in a research report on Friday, May 8th. Wall Street Zen cut Labcorp from a "buy" rating to a "hold" rating in a research report on Saturday. Finally, Robert W. Baird set a $334.00 price objective on Labcorp in a research report on Friday, May 1st. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Labcorp currently has an average rating of "Moderate Buy" and a consensus target price of $308.00.

Labcorp Stock Performance

LH opened at $265.45 on Monday. The stock has a market cap of $21.77 billion, a PE ratio of 23.51, a P/E/G 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 Holdings Inc. has a 1 year low of $241.81 and a 1 year high of $293.72. The stock's 50 day simple moving average is $262.65 and its 200-day simple moving average is $265.78.

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

Labcorp Announces Dividend

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

About Labcorp

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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