Hsbc Holdings PLC Increases Stake in Labcorp Holdings Inc. $LH

Key Points

• Hsbc Holdings PLC increased its stake in Labcorp Holdings Inc. by 1.1% during the first quarter, owning about 0.20% of the company, valued at $37,958,000.
• Labcorp reported $4.35 earnings per share (EPS), surpassing estimates by $0.21, while its revenue rose 9.6% year-over-year to $3.53 billion.
• The company declared a quarterly dividend of $0.72, resulting in an annualized yield of 1.0% with a payout ratio of 31.79%.

Hsbc Holdings PLC lifted its stake in shares of Labcorp Holdings Inc. (NYSE:LH - Free Report) by 1.1% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 163,766 shares of the medical research company's stock after buying an additional 1,790 shares during the quarter. Hsbc Holdings PLC owned about 0.20% of Labcorp worth $37,958,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also bought and sold shares of the company. Select Equity Group L.P. boosted its position in shares of Labcorp by 150.9% during the fourth quarter. Select Equity Group L.P. now owns 1,595,957 shares of the medical research company's stock valued at $365,985,000 after purchasing an additional 959,981 shares in the last quarter. GAMMA Investing LLC lifted its position in Labcorp by 37,334.2% during the first quarter. GAMMA Investing LLC now owns 809,702 shares of the medical research company's stock valued at $188,450,000 after buying an additional 807,539 shares during the period. Invesco Ltd. boosted its holdings in shares of Labcorp by 28.9% during the 1st quarter. Invesco Ltd. now owns 1,421,112 shares of the medical research company's stock valued at $330,750,000 after buying an additional 318,865 shares in the last quarter. Lord Abbett & CO. LLC boosted its holdings in shares of Labcorp by 55.9% during the 1st quarter. Lord Abbett & CO. LLC now owns 781,211 shares of the medical research company's stock valued at $181,819,000 after buying an additional 280,011 shares in the last quarter. Finally, Freestone Grove Partners LP purchased a new stake in shares of Labcorp in the 4th quarter worth about $48,693,000. 95.94% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Kerrii B. Anderson sold 3,500 shares of the company's stock in a transaction on Thursday, July 24th. The stock was sold at an average price of $280.00, for a total transaction of $980,000.00. Following the completion of the sale, the director owned 8,666 shares in the company, valued at approximately $2,426,480. This represents a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Adam H. Schechter sold 5,643 shares of the firm's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $266.78, for a total value of $1,505,439.54. Following the completion of the transaction, the chief executive officer directly owned 93,319 shares in the company, valued at $24,895,642.82. The trade was a 5.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 18,046 shares of company stock valued at $4,831,192 over the last ninety days. 0.84% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research firms recently commented on LH. Barclays reissued a "cautious" rating on shares of Labcorp in a research note on Wednesday, June 25th. Evercore ISI boosted their price target on Labcorp from $285.00 to $300.00 and gave the stock an "outperform" rating in a research report on Friday, July 25th. HSBC downgraded Labcorp from a "buy" rating to a "hold" rating and set a $260.00 price target on the stock. in a research note on Thursday, July 10th. Robert W. Baird set a $311.00 price objective on Labcorp in a research note on Monday. Finally, Morgan Stanley increased their target price on Labcorp from $283.00 to $306.00 and gave the stock an "overweight" rating in a research note on Friday, July 25th. Nine analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Labcorp has a consensus rating of "Moderate Buy" and a consensus target price of $290.33.

Labcorp Stock Performance

Shares of NYSE LH traded up $2.30 during trading on Tuesday, reaching $278.41. 449,090 shares of the company traded hands, compared to its average volume of 715,860. The firm has a 50 day simple moving average of $261.42 and a 200-day simple moving average of $248.27. The company has a quick ratio of 1.32, a current ratio of 1.50 and a debt-to-equity ratio of 0.61. The stock has a market capitalization of $23.14 billion, a PE ratio of 30.73, a P/E/G ratio of 1.78 and a beta of 0.78. Labcorp Holdings Inc. has a 52-week low of $209.38 and a 52-week high of $283.47.

Labcorp (NYSE:LH - Get Free Report) last released its quarterly earnings data on Thursday, July 24th. The medical research company reported $4.35 earnings per share for the quarter, beating the consensus estimate of $4.14 by $0.21. The firm had revenue of $3.53 billion during the quarter, compared to analysts' expectations of $3.49 billion. Labcorp had a net margin of 5.66% and a return on equity of 15.45%. The firm's quarterly revenue was up 9.6% on a year-over-year basis. During the same period in the previous year, the company earned $3.94 earnings per share. Labcorp has set its FY 2025 guidance at 16.050-16.500 EPS. Equities research analysts anticipate that Labcorp Holdings Inc. will post 16.01 earnings per share for the current year.

Labcorp Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 28th will be paid a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, August 28th. Labcorp's dividend payout ratio (DPR) is 31.79%.

About Labcorp

Labcorp Holdings, Inc engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.