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

Key Points

• Labcorp has a “Moderate Buy” consensus rating from 12 analysts, with nine buys and three holds; the average 12-month price target is $330.
• The company exceeded quarterly expectations, reporting $4.99 EPS versus a $4.78 consensus and $3.73 billion in revenue, up 5.8% year over year.
• Labcorp declared a quarterly dividend of $0.72 per share, equivalent to an annualized $2.88 dividend and a 0.9% yield.

Labcorp Holdings Inc. (NYSE:LH - Get Free Report) has received a consensus rating of "Moderate Buy" from the twelve ratings firms that are currently covering the firm, Marketbeat Ratings reports. Three analysts have rated the stock with a hold recommendation and nine have assigned a buy recommendation to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $330.00.

Several research firms have weighed in on LH. Wall Street Zen upgraded Labcorp from a "hold" rating to a "buy" rating in a research report on Sunday, July 12th. Piper Sandler boosted their target price on shares of Labcorp from $300.00 to $309.00 and gave the company a "neutral" rating in a research report on Tuesday, August 4th. Robert W. Baird set a $352.00 price target on shares of Labcorp in a research note on Friday, July 31st. Mizuho set a $355.00 price target on shares of Labcorp in a research report on Monday. Finally, Barclays lifted their price objective on shares of Labcorp from $290.00 to $320.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 30th.

Labcorp Price Performance

Labcorp stock opened at $322.62 on Wednesday. The company has a market capitalization of $26.16 billion, a price-to-earnings ratio of 26.69, a PEG ratio of 1.86 and a beta of 0.87. The company has a current ratio of 1.80, a quick ratio of 1.53 and a debt-to-equity ratio of 0.69. Labcorp has a 12 month low of $244.52 and a 12 month high of $323.97. The stock's 50 day moving average is $282.70 and its 200-day moving average is $273.60.

Labcorp (NYSE:LH - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The medical research company reported $4.99 earnings per share for the quarter, topping the consensus estimate of $4.78 by $0.21. The business had revenue of $3.73 billion during the quarter, compared to analysts' expectations of $3.71 billion. Labcorp had a return on equity of 16.74% and a net margin of 6.99%.The firm's revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period last year, the firm posted $4.35 EPS. Labcorp has set its FY 2026 guidance at 18.100-18.550 EPS. Equities research analysts expect that Labcorp will post 18.32 EPS for the current year.

Labcorp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 28th will be issued a dividend of $0.72 per share. The ex-dividend date of this dividend is Friday, August 28th. This represents a $2.88 annualized dividend and a dividend yield of 0.9%. Labcorp's dividend payout ratio (DPR) is currently 23.82%.

Insider Activity

In other news, EVP Bryan T. Vaughn sold 234 shares of Labcorp stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $286.19, for a total value of $66,968.46. Following the completion of the sale, the executive vice president directly owned 6,746 shares in the company, valued at approximately $1,930,637.74. The trade was a 3.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Amy B. Summy sold 924 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $306.74, for a total value of $283,427.76. Following the sale, the executive vice president directly owned 6,956 shares in the company, valued at $2,133,683.44. This represents a 11.73% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 2,012 shares of company stock worth $577,810. Corporate insiders own 0.84% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LH. Hilton Head Capital Partners LLC acquired a new stake in Labcorp during the fourth quarter worth about $27,000. JPL Wealth Management LLC acquired a new position in shares of Labcorp in the 3rd quarter valued at approximately $28,000. Eagle Bay Advisors LLC acquired a new position in shares of Labcorp in the 4th quarter valued at approximately $29,000. DV Equities LLC bought a new stake in shares of Labcorp during the 4th quarter worth approximately $29,000. Finally, Allied Private Wealth LLC bought a new stake in shares of Labcorp during the 2nd quarter worth approximately $33,000. Institutional investors own 95.94% of the company's stock.

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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