On June 1, 2023, global insurance giant Aviva PLC announced that it had increased its stake in Laboratory Co. of America Holdings (NYSE:LH) by 70.9% during the fourth quarter of the previous year. The company now owns over 109,000 shares of LH worth $966k according to its most recent filing with the Securities & Exchange Commission.
Despite this positive development, LH has seen better days in terms of earnings reportage. During the first quarter of 2023, LH posted an EPS of $3.82 not meeting a consensus estimate by ($0.17). The medical research company’s revenue for the quarter was also down by 3.1% compared to the same period last year following a decrease in sales due to supply chain complications amid a global pandemic.
In spite of this decrease in revenue, several equity research analysts are bullish on LH’s prospects moving forward. In February of this year, Robert W. Baird upped their price target to $300 per share giving LH an “outperform” rating while Truist Financial currently projects target prices at $275 and StockNews.com recently gave the shares a “buy” rating.
While only two equities research analysts have assigned a hold rating to LH, Bloomberg.com reports that there is still consensus over a “Moderate Buy” rating for current investors with price projections expected to surpass $273 per share in future trading sessions.
As investors begin recalculating their portfolios across various industries and sectors post-pandemic, all eyes will be on how Laboratory Co. of America continues performing and meeting analyst expectations especially as companies like Aviva PLC grow increasingly interested in owning more shares amid challenging times globally for insurance providers as well as other financial services entities seeking strong returns from equities investments moving forward.
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Laboratory Co. of America Holdings (LH): Institutional Investment Fluctuations Amid Resilience in Medical Services Industry
Laboratory Co. of America Holdings (LH) has seen an increasing number of institutional investors and hedge funds reduce or add to their stakes in the company in recent months. Eagle Bay Advisors LLC and WFA of San Diego LLC acquired new positions worth approximately $29,000 and $33,000 respectively during the second and fourth quarters, while Quent Capital LLC raised its stake by 186.3% in Q4 and General Partner Inc. added a new position worth around $53,000 in the same period. Meanwhile, shares of NYSE:LH opened at $212.53 on Thursday, oscillating between a one-year low of $200.32 and a high of $263.13. The fifty-day moving average price is currently at $223.99 with the two-hundred day moving average at $234.07.
A range of equities research analysts have also recently shared their views on LH stock with some lowering their price targets while others expecting a promising rise for the company due to its resilience amid economic downturns which demand continued medical services research.
Despite variable predictions, Laboratory Co.’s dividend payout ratio (DPR) continues to entice investors as it is set at 26.13%. Further news broke that CEO Paul R.Kirchgraber sold 4,300 shares of LH stock valued at nearly $1 million on May 19th alone this year; subsequent profits means he now holds over 12k shares worth nearly $3 million at current market value – offering potential optimism to other shareholders interested in long-term investment plans.
While institutional investment fluctuations continue to influence prices for Laboratory Co., this multinational leader remains noteworthy for its steadily profitable performance even during global recessions; it stands apart within testing services industries already estimated to be worth over USD64 billion globally as businesses and governments ramp up investments in laboratory sciences including diagnostics for Covid-19 pandemic management across countries worldwide.
