Laboratory Co. of America (NYSE:LH) Shares Up 7.3% Following Better-Than-Expected Earnings

Laboratory Co. of America Holdings (NYSE:LH)’s stock price traded up 7.3% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $233.98 and last traded at $231.12. 898,171 shares changed hands during trading, an increase of 26% from the average session volume of 713,894 shares. The stock had previously closed at $215.44.

The medical research company reported $3.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.78 by $0.16. Laboratory Co. of America had a return on equity of 15.39% and a net margin of 3.60%. The firm had revenue of $3.22 billion for the quarter, compared to analysts’ expectations of $3.19 billion. During the same period in the previous year, the firm posted $3.42 earnings per share. The business’s revenue was up 6.2% compared to the same quarter last year.

Laboratory Co. of America Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 13th. Shareholders of record on Thursday, August 29th will be paid a dividend of $0.72 per share. The ex-dividend date is Thursday, August 29th. This represents a $2.88 annualized dividend and a yield of 1.22%. Laboratory Co. of America’s payout ratio is currently 57.95%.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. JPMorgan Chase & Co. dropped their target price on Laboratory Co. of America from $261.00 to $243.00 and set an “overweight” rating for the company in a research report on Thursday, May 30th. Barclays boosted their price target on Laboratory Co. of America from $213.00 to $249.00 and gave the company an “equal weight” rating in a report on Friday. UBS Group boosted their price target on Laboratory Co. of America from $260.00 to $270.00 and gave the company a “buy” rating in a report on Friday. Robert W. Baird boosted their price objective on shares of Laboratory Co. of America from $261.00 to $277.00 and gave the stock an “outperform” rating in a research note on Friday. Finally, Truist Financial boosted their price objective on shares of Laboratory Co. of America from $255.00 to $275.00 and gave the stock a “buy” rating in a research note on Friday. Five equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $247.79.

Insider Activity

In related news, EVP Der Vaart Sandra D. Van sold 2,000 shares of Laboratory Co. of America stock in a transaction on Tuesday, May 14th. The shares were sold at an average price of $210.83, for a total transaction of $421,660.00. Following the sale, the executive vice president now owns 5,637 shares of the company’s stock, valued at approximately $1,188,448.71. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.85% of the company’s stock.

Institutional Trading of Laboratory Co. of America

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank acquired a new stake in shares of Laboratory Co. of America in the fourth quarter worth $291,045,000. Bank of New York Mellon Corp grew its holdings in shares of Laboratory Co. of America by 135.0% in the 2nd quarter. Bank of New York Mellon Corp now owns 1,609,826 shares of the medical research company’s stock worth $327,616,000 after purchasing an additional 924,881 shares during the last quarter. Allspring Global Investments Holdings LLC grew its holdings in Laboratory Co. of America by 58.8% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 1,613,854 shares of the medical research company’s stock worth $352,563,000 after acquiring an additional 597,571 shares during the last quarter. Veritas Investment Partners UK Ltd. grew its holdings in Laboratory Co. of America by 32.5% during the 4th quarter. Veritas Investment Partners UK Ltd. now owns 1,140,300 shares of the medical research company’s stock worth $259,133,000 after acquiring an additional 279,628 shares during the last quarter. Finally, Public Sector Pension Investment Board lifted its position in Laboratory Co. of America by 2,750.2% during the 4th quarter. Public Sector Pension Investment Board now owns 270,483 shares of the medical research company’s stock valued at $61,478,000 after purchasing an additional 260,993 shares during the period. 95.94% of the stock is currently owned by institutional investors.

Laboratory Co. of America Trading Up 1.1 %

The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.76 and a current ratio of 0.88. The company has a market capitalization of $19.89 billion, a price-to-earnings ratio of 47.49, a P/E/G ratio of 1.76 and a beta of 1.05. The business’s 50-day simple moving average is $205.23 and its 200-day simple moving average is $210.54.

Laboratory Co. of America Company Profile

Laboratory Corporation of America Holdings operates as a life sciences company that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions. It operates in two segments, Labcorp Diagnostics (Dx) and Biopharma Laboratory Services (BLS).