Labcorp (NYSE:LH) Shares Gap Down – What’s Next?

Shares of Labcorp Holdings Inc. (NYSE:LH) gapped down prior to trading on Tuesday . The stock had previously closed at $276.68, but opened at $262.11. Labcorp shares last traded at $275.99, with a volume of 59,497 shares.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on LH. Robert W. Baird raised their price objective on shares of Labcorp from $335.00 to $338.00 and gave the company an “outperform” rating in a research report on Monday. Bank of America increased their target price on Labcorp from $300.00 to $320.00 and gave the company a “buy” rating in a research note on Monday. Evercore reissued an “outperform” rating and set a $300.00 price target on shares of Labcorp in a research note on Wednesday, April 8th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Labcorp in a report on Friday, May 8th. Finally, Wall Street Zen upgraded shares of Labcorp from a “hold” rating to a “buy” rating in a research report on Sunday. Nine investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Labcorp has an average rating of “Moderate Buy” and a consensus price target of $314.40.

Labcorp Price Performance

The company has a quick ratio of 1.54, a current ratio of 1.73 and a debt-to-equity ratio of 0.68. The firm’s fifty day moving average price is $265.14 and its 200-day moving average price is $267.60. The stock has a market cap of $22.30 billion, a P/E ratio of 24.09, a PEG ratio of 1.83 and a beta of 0.89.

Labcorp (NYSE:LH) last announced its quarterly 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 business had revenue of $3.54 billion during the quarter, compared to analysts’ expectations of $3.51 billion. During the same quarter in the prior year, the company posted $3.84 EPS. The firm’s revenue for the quarter was up 5.8% compared to the same quarter last year. Labcorp has set its FY 2026 guidance at 17.700-18.350 EPS. Analysts forecast that Labcorp Holdings Inc. will post 18 earnings per share for the current year.

Labcorp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 28th will be issued a $0.72 dividend. The ex-dividend date is Friday, August 28th. This represents a $2.88 annualized dividend and a yield of 1.1%. Labcorp’s dividend payout ratio (DPR) is 25.51%.

Insider Transactions at Labcorp

In related news, CEO Adam H. Schechter sold 5,903 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $254.50, for a total value of $1,502,313.50. Following the completion of the sale, the chief executive officer owned 107,234 shares of the company’s stock, valued at $27,291,053. This trade represents a 5.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Bryan T. Vaughn sold 234 shares of Labcorp stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $286.19, for a total transaction of $66,968.46. Following the completion of the sale, the executive vice president owned 6,746 shares in the company, valued at approximately $1,930,637.74. This trade represents a 3.35% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 three months, insiders have sold 6,991 shares of company stock worth $1,796,696. 0.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Labcorp

Several institutional investors and hedge funds have recently modified their holdings of LH. Victory Capital Management Inc. lifted its holdings in Labcorp by 103.1% in the fourth quarter. Victory Capital Management Inc. now owns 5,356,825 shares of the medical research company’s stock worth $1,343,922,000 after buying an additional 2,719,475 shares during the period. Boston Partners purchased a new position in shares of Labcorp during the 4th quarter worth approximately $480,271,000. Norges Bank bought a new position in shares of Labcorp in the 4th quarter worth approximately $248,006,000. Wellington Management Group LLP raised its position in shares of Labcorp by 15.9% in the 3rd quarter. Wellington Management Group LLP now owns 2,105,791 shares of the medical research company’s stock worth $604,488,000 after acquiring an additional 289,029 shares in the last quarter. Finally, Marshall Wace LLP lifted its stake in shares of Labcorp by 79.1% in the 3rd quarter. Marshall Wace LLP now owns 623,550 shares of the medical research company’s stock valued at $178,996,000 after purchasing an additional 275,454 shares during the period. 95.94% of the stock is owned by hedge funds and other institutional investors.

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.