Labcorp (NYSE:LH) Sets New 1-Year High - Here's What Happened

Key Points

• Labcorp hit a new 52-week high on Thursday, trading as high as $297.32 and closing near $296.88, well above its previous close of $281.46.
• Analysts remain constructive on the stock, with multiple firms recently lifting price targets; the company now carries an average Moderate Buy rating and a consensus target of $314.40.
• Labcorp also reported solid quarterly results, beating EPS and revenue estimates, and announced a quarterly dividend of $0.72 per share payable on Sept. 11.

Labcorp Holdings Inc. (NYSE:LH - Get Free Report) shares reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $297.32 and last traded at $296.8810, with a volume of 77534 shares trading hands. The stock had previously closed at $281.46.

Wall Street Analysts Forecast Growth

LH has been the topic of a number of recent analyst reports. Weiss Ratings reiterated a "buy (b-)" rating on shares of Labcorp in a research report on Friday, May 8th. Wall Street Zen raised shares of Labcorp from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. Evercore reaffirmed an "outperform" rating and issued a $300.00 target price on shares of Labcorp in a research note on Wednesday, April 8th. Bank of America upped their price objective on Labcorp from $300.00 to $320.00 and gave the company a "buy" rating in a report on Monday, July 13th. Finally, Robert W. Baird boosted their price objective on shares of Labcorp from $335.00 to $338.00 and gave the company an "outperform" rating in a report on Monday, July 13th. Nine research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $314.40.

Labcorp Price Performance

The company has a 50 day moving average of $267.72 and a 200 day moving average of $268.63. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.54 and a current ratio of 1.73. The stock has a market capitalization of $24.21 billion, a price-to-earnings ratio of 26.11, a PEG ratio of 1.85 and a beta of 0.89.

Labcorp (NYSE:LH - Get Free Report) last issued its earnings results on Thursday, April 30th. The medical research company reported $4.25 earnings per share for the quarter, beating the consensus estimate of $4.09 by $0.16. Labcorp had a net margin of 6.66% and a return on equity of 16.29%. The firm had revenue of $3.54 billion for the quarter, compared to analysts' expectations of $3.51 billion. During the same quarter last year, the company earned $3.84 earnings per share. The firm's revenue was up 5.8% compared to the same quarter last year. Labcorp has set its FY 2026 guidance at 17.700-18.350 EPS. As a group, equities research analysts anticipate that Labcorp Holdings Inc. will post 18 EPS for the current year.

Labcorp Announces Dividend

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

Insider Transactions at Labcorp

In other Labcorp news, EVP Bryan T. Vaughn sold 234 shares of the 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 transaction, the executive vice president directly owned 6,746 shares in the company, valued at $1,930,637.74. This represents a 3.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 Kathryn W. Kyle sold 92 shares of the firm's stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $286.19, for a total transaction of $26,329.48. Following the sale, the executive vice president directly owned 3,904 shares in the company, valued at approximately $1,117,285.76. The trade was a 2.30% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 6,991 shares of company stock valued at $1,796,696. 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. JPL Wealth Management LLC acquired a new position in Labcorp in the third quarter valued at $28,000. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of Labcorp during the fourth quarter worth about $26,000. Hilton Head Capital Partners LLC purchased a new stake in shares of Labcorp in the 4th quarter valued at about $27,000. Eagle Bay Advisors LLC purchased a new stake in shares of Labcorp in the 4th quarter valued at about $29,000. Finally, DV Equities LLC purchased a new stake in shares of Labcorp in the 4th quarter valued at about $29,000. 95.94% of the stock is owned by hedge funds and other institutional investors.

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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