Labcorp Holdings Inc. (NYSE:LH) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is positive on Labcorp, with 11 research firms giving it an average rating of “Moderate Buy” and a consensus 12-month price target of $314.40.
• Recent earnings were solid, as Labcorp reported EPS of $4.25 versus $4.09 expected and revenue of $3.54 billion versus $3.51 billion estimated, while revenue rose 5.8% year over year.
• The company also announced a quarterly dividend of $0.72 per share, which implies a 1.0% yield and an annualized payout of $2.88 per share.

Shares of Labcorp Holdings Inc. (NYSE:LH - Get Free Report) have been assigned an average rating of "Moderate Buy" from the eleven research firms that are covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold recommendation and nine have given a buy recommendation to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $314.40.

LH has been the topic of a number of recent research reports. Bank of America lifted their target price on Labcorp from $300.00 to $320.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Robert W. Baird raised their price objective on Labcorp from $335.00 to $338.00 and gave the stock an "outperform" rating in a research report on Monday, July 13th. Weiss Ratings reissued a "buy (b-)" rating on shares of Labcorp in a report on Friday, May 8th. Wall Street Zen upgraded Labcorp from a "hold" rating to a "buy" rating in a research report on Sunday, July 12th. Finally, Evercore restated an "outperform" rating and issued a $300.00 target price on shares of Labcorp in a research note on Wednesday, April 8th.

Insider Activity

In other news, EVP Kathryn W. Kyle sold 762 shares of Labcorp stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $263.89, for a total transaction of $201,084.18. Following the sale, the executive vice president directly owned 3,813 shares in the company, valued at approximately $1,006,212.57. The trade was a 16.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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 company's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $254.50, for a total transaction of $1,502,313.50. Following the completion of the sale, the chief executive officer directly owned 107,234 shares in the company, valued at approximately $27,291,053. The trade was a 5.22% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 6,991 shares of company stock worth $1,796,696. 0.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Labcorp

A number of institutional investors have recently added to or reduced their stakes in LH. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Labcorp during the 4th quarter worth approximately $26,000. Hilton Head Capital Partners LLC bought a new stake in Labcorp in the fourth quarter valued at $27,000. JPL Wealth Management LLC bought a new stake in Labcorp in the third quarter valued at $28,000. Eagle Bay Advisors LLC acquired a new position in Labcorp during the fourth quarter worth $29,000. Finally, DV Equities LLC acquired a new position in Labcorp during the fourth quarter worth $29,000. 95.94% of the stock is owned by institutional investors and hedge funds.

Labcorp Price Performance

Shares of Labcorp stock opened at $283.63 on Friday. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.73 and a quick ratio of 1.54. Labcorp has a fifty-two week low of $241.81 and a fifty-two week high of $293.72. The firm has a fifty day moving average price of $266.22 and a two-hundred day moving average price of $267.91. The company has a market cap of $23.26 billion, a PE ratio of 25.12, a price-to-earnings-growth ratio of 1.87 and a beta of 0.89.

Labcorp (NYSE:LH - Get Free Report) last posted its quarterly 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. The company had revenue of $3.54 billion for the quarter, compared to analyst estimates of $3.51 billion. Labcorp had a net margin of 6.66% and a return on equity of 16.29%. The business's quarterly revenue was up 5.8% on a year-over-year basis. During the same period last year, the business posted $3.84 EPS. Labcorp has set its FY 2026 guidance at 17.700-18.350 EPS. Analysts expect that Labcorp will post 18 EPS for the current year.

Labcorp Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 28th will be issued a $0.72 dividend. This represents a $2.88 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, August 28th. Labcorp's payout ratio is 25.51%.

Labcorp Company 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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