Labcorp (NYSE:LH) Sets New 52-Week High - Still a Buy?

Labcorp Holdings Inc. (NYSE:LH - Get Free Report) shares hit a new 52-week high during trading on Wednesday . The stock traded as high as $323.97 and last traded at $322.6240, with a volume of 512632 shares trading hands. The stock had previously closed at $321.31.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Wall Street Zen upgraded Labcorp from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. Robert W. Baird set a $352.00 price target on Labcorp in a research note on Friday, July 31st. Truist Financial boosted their price target on Labcorp from $320.00 to $350.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Piper Sandler upped their price objective on Labcorp from $300.00 to $309.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 4th. Finally, Bank of America raised their price objective on Labcorp from $300.00 to $320.00 and gave the company a "buy" rating in a research note on Monday, July 13th. Nine investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $330.00.

Labcorp Price Performance

The stock has a market capitalization of $26.16 billion, a price-to-earnings ratio of 26.69, a P/E/G ratio of 1.86 and a beta of 0.87. The company has a fifty day simple moving average of $282.70 and a 200 day simple moving average of $273.60. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.53 and a current ratio of 1.80.

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

Labcorp Announces Dividend

The company 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 dividend of $0.72 per share. The ex-dividend date is Friday, August 28th. This represents a $2.88 annualized dividend and a yield of 0.9%. Labcorp's dividend payout ratio (DPR) is presently 23.82%.

Insider Transactions at Labcorp

In other news, EVP Amy B. Summy sold 924 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were 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 of the company's stock, valued at approximately $2,133,683.44. This represents a 11.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Kathryn W. Kyle sold 762 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $263.89, for a total transaction of $201,084.18. Following the sale, the executive vice president owned 3,813 shares of the company's stock, valued at approximately $1,006,212.57. This trade represents a 16.66% decrease in their ownership of the stock. 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 have sold 2,012 shares of company stock worth $577,810. Company insiders own 0.84% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Hilton Head Capital Partners LLC acquired a new stake in Labcorp during the fourth quarter worth approximately $27,000. JPL Wealth Management LLC acquired a new position in Labcorp in the third quarter valued at approximately $28,000. Eagle Bay Advisors LLC acquired a new position in Labcorp in the fourth quarter valued at approximately $29,000. DV Equities LLC bought a new position in shares of Labcorp during the 4th quarter worth approximately $29,000. Finally, Allied Private Wealth LLC bought a new position in shares of Labcorp during the 2nd quarter worth approximately $33,000. 95.94% of the stock is owned by institutional investors and hedge funds.

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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