Labcorp (NYSE:LH) Shares Gap Down - Time to Sell?

Key Points

• Labcorp shares opened sharply lower, falling from a prior close of $320.99 to $303.46 before recovering to around $313.95.
• Analysts remain broadly positive, with nine Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $337.73.
• Labcorp recently beat quarterly earnings and revenue expectations, while maintaining fiscal 2026 EPS guidance; it also pays a $0.72 quarterly dividend, although insiders have sold roughly $2.83 million in shares over the past 90 days.

Labcorp Holdings Inc. (NYSE:LH - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $320.99, but opened at $303.46. Labcorp shares last traded at $313.95, with a volume of 129,255 shares traded.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. JPMorgan Chase & Co. lifted their price target on Labcorp from $330.00 to $360.00 and gave the company an "overweight" rating in a report on Monday, August 3rd. Bank of America increased their price target on shares of Labcorp from $300.00 to $320.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Weiss Ratings raised shares of Labcorp from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, July 24th. UBS Group boosted their price target on shares of Labcorp from $361.00 to $380.00 and gave the company a "buy" rating in a report on Friday, September 11th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $306.00 price target on shares of Labcorp in a research note on Friday, July 31st. 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, Labcorp presently has an average rating of "Moderate Buy" and a consensus target price of $337.73.

Labcorp Stock Performance

The company has a debt-to-equity ratio of 0.69, a current ratio of 1.80 and a quick ratio of 1.53. The firm has a fifty day simple moving average of $315.41 and a 200 day simple moving average of $283.41. The company has a market cap of $25.19 billion, a price-to-earnings ratio of 25.74, a P/E/G ratio of 1.82 and a beta of 0.88.

Labcorp (NYSE:LH - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The medical research company reported $4.99 earnings per share for the quarter, topping analysts' consensus estimates 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 net margin of 6.99% and a return on equity of 16.74%. Labcorp's revenue for the quarter was up 5.8% on a year-over-year basis. During the same period in the previous year, the company earned $4.35 earnings per share. Labcorp has set its FY 2026 guidance at 18.100-18.550 EPS. On average, sell-side analysts expect that Labcorp Holdings Inc. will post 18.32 earnings per share for the current fiscal year.

Labcorp Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 11th. Shareholders of record on Friday, August 28th were issued a dividend of $0.72 per share. This represents a $2.88 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Friday, August 28th. Labcorp's dividend payout ratio is 23.82%.

Insiders Place Their Bets

In related news, Director Kerrii Anderson sold 3,000 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $318.02, for a total transaction of $954,060.00. Following the completion of the transaction, the director owned 6,563 shares of the company's stock, valued at approximately $2,087,165.26. The trade was a 31.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Summy sold 924 shares of the stock in a transaction that occurred 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 owned 6,956 shares of the company's stock, valued at approximately $2,133,683.44. The trade was a 11.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 8,919 shares of company stock valued at $2,826,593 in the last ninety days. Company insiders own 0.84% of the company's stock.

Hedge Funds Weigh In On Labcorp

A number of institutional investors and hedge funds have recently bought and sold shares of LH. Hilton Head Capital Partners LLC acquired a new stake in Labcorp in the 4th quarter worth $27,000. Allied Private Wealth LLC acquired a new position in shares of Labcorp during the second quarter valued at about $33,000. Cedar Mountain Advisors LLC raised its position in shares of Labcorp by 786.7% during the first quarter. Cedar Mountain Advisors LLC now owns 133 shares of the medical research company's stock valued at $35,000 after buying an additional 118 shares during the last quarter. SHP Wealth Management bought a new stake in shares of Labcorp in the fourth quarter valued at about $40,000. Finally, Jones Financial Companies Lllp acquired a new stake in Labcorp during the second quarter worth about $58,000. Institutional investors own 95.94% of the company's stock.

Labcorp Company Profile

Labcorp NYSE: LH, formerly Laboratory Corporation of America Holdings, is a global life sciences and laboratory services company headquartered in Burlington, North Carolina. The company provides diagnostic testing and related services to physicians, hospitals, health systems, employers, government agencies and consumers.

Its diagnostics business offers routine and specialty laboratory testing, including molecular, genetic, oncology, women's health, infectious disease and pathology services.

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