Labcorp Holdings Inc. (NYSE:LH) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Labcorp Holdings Inc. has received a consensus recommendation of “Moderate Buy”, with nine analysts issuing buy ratings, three hold ratings, and one sell rating.
• The company reported $4.35 EPS for the most recent quarter, surpassing the consensus estimate of $4.14, with revenue of $3.53 billion.
• Labcorp declared a quarterly dividend of $0.72 per share, reflecting an annualized dividend of $2.88 and a yield of 1.1%.

Shares of Labcorp Holdings Inc. (NYSE:LH - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the thirteen research firms that are presently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating, three have given a hold rating and nine have issued a buy rating on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $289.58.

A number of brokerages recently commented on LH. Hsbc Global Res cut Labcorp from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 10th. Evercore ISI lifted their price objective on Labcorp from $285.00 to $300.00 and gave the stock an "outperform" rating in a research note on Friday, July 25th. HSBC cut Labcorp from a "buy" rating to a "hold" rating and set a $260.00 price objective for the company. in a research note on Thursday, July 10th. Wall Street Zen raised Labcorp from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Finally, Piper Sandler reaffirmed a "neutral" rating and set a $280.00 price objective (up from $260.00) on shares of Labcorp in a research note on Tuesday, May 6th.

Labcorp Stock Up 0.5%

NYSE LH opened at $261.34 on Friday. The stock has a fifty day moving average of $256.06 and a 200-day moving average of $245.49. The stock has a market capitalization of $21.87 billion, a P/E ratio of 28.85, a price-to-earnings-growth ratio of 1.66 and a beta of 0.78. Labcorp has a 52 week low of $209.38 and a 52 week high of $283.47. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.32 and a current ratio of 1.50.

Labcorp (NYSE:LH - Get Free Report) last released its earnings results on Thursday, July 24th. The medical research company reported $4.35 EPS for the quarter, beating the consensus estimate of $4.14 by $0.21. The company had revenue of $3.53 billion during the quarter, compared to analysts' expectations of $3.49 billion. Labcorp had a return on equity of 15.45% and a net margin of 5.66%. The business's revenue for the quarter was up 9.6% on a year-over-year basis. During the same period last year, the firm earned $3.94 EPS. On average, equities research analysts forecast that Labcorp will post 16.01 EPS 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 issued a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a dividend yield of 1.1%. Labcorp's dividend payout ratio (DPR) is 31.79%.

Insider Transactions at Labcorp

In other news, EVP Brian J. Caveney sold 2,000 shares of the business's stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $247.00, for a total value of $494,000.00. Following the sale, the executive vice president directly owned 30,067 shares in the company, valued at $7,426,549. The trade was a 6.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Adam H. Schechter sold 6,105 shares of the business's stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $248.73, for a total value of $1,518,496.65. Following the completion of the sale, the chief executive officer owned 98,962 shares in the company, valued at approximately $24,614,818.26. This trade represents a 5.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 14,605 shares of company stock valued at $3,784,897. 0.84% of the stock is currently owned by company insiders.

Institutional Trading of Labcorp

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. New York Life Investment Management LLC increased its position in shares of Labcorp by 0.8% in the second quarter. New York Life Investment Management LLC now owns 12,557 shares of the medical research company's stock valued at $3,296,000 after acquiring an additional 94 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund increased its position in shares of Labcorp by 0.8% in the second quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 12,507 shares of the medical research company's stock valued at $3,283,000 after acquiring an additional 100 shares during the last quarter. Rossby Financial LCC increased its position in shares of Labcorp by 8.9% in the second quarter. Rossby Financial LCC now owns 550 shares of the medical research company's stock valued at $144,000 after acquiring an additional 45 shares during the last quarter. Ashton Thomas Private Wealth LLC acquired a new stake in shares of Labcorp in the second quarter valued at about $391,000. Finally, Envestnet Asset Management Inc. increased its position in shares of Labcorp by 1.2% in the second quarter. Envestnet Asset Management Inc. now owns 277,037 shares of the medical research company's stock valued at $72,725,000 after acquiring an additional 3,322 shares during the last quarter. Institutional investors and hedge funds own 95.94% of the company's stock.

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.

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