On May 25, 2023, Laboratory Co. of America Holdings (NYSE: LH), a leading medical research company, received an average recommendation of “Moderate Buy” from the eleven ratings firms that currently cover the stock, according to Bloomberg.com. The company’s share price target is set at an average of $273.50 over the next twelve months by analysts who have updated their coverage on the stock in the last year.
Of the eleven research analysts covering Laboratory Co. of America, six recommend a buy and one holds a neutral view on the stock. The remaining four ratings are yet to be disclosed.
With an ex-dividend date set for May 17th and payment date on June 8th, shareholders of record on May 18th will receive a dividend payment of $0.72 per share. The annualized payout ratio for dividends is at a moderate level of 26.13%, mapping out a profitable outlook for investors.
Investors tracking Laboratory Co. of America Holdings may be interested in knowing how top hedge funds and institutional investors are allocating their shares. Recent reports indicate significant movement in institutional investment with stake increases being made by Roundview Capital LLC and Synovus Financial Corp.
Roundview Capital LLC grew its position in Laboratory Co. of America by 1.6% during Q1, acquiring additional shares valued at over $2 million during that period alone, while Synovus Financial Corp increased its holdings by 105.7%. Several other institutions such as LSV Asset Management also acquired more shares during this period.
The current percentage of shares held by hedge funds and other institutional investors amounts to approximately 90% indicating significant trust in the company’s earnings potential and overall value.
Laboratory Co.of America appears as one to watch going forward, with its recent track record highlighting numerous opportunities for sustainable growth within its market sector—their consistently high rating among industry experts signaling positive future potential for investment.
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Lab Co. of America’s Stock Performance Analyzed by Research Firms
As of May 25, 2023, Laboratory Co. of America (NYSE:LH) has been the subject of several recent reports by research firms regarding its stock performance. Among these reports is Credit Suisse Group’s research note which cut their target price on shares of LH from $304.00 to $288.00 and gave the company an “outperform” rating last March 13th. Meanwhile, Deutsche Bank Aktiengesellschaft also lowered their price objective on shares of LH last April 26th from $265.00 to $240.00.
Mizuho also released a research note recently and dropped their price objective on share values from $277.00 to $257.00 last May 16th while Robert W. Baird lifted the same objective significantly higher up to $300.00 and rated the stock as “outperform” in a February 17 research note.
Last May 12th, StockNews.com released its own report which upgraded the rating of LH stocks from a “hold” to a “buy”. Despite these varying ratings, one thing holds true: analysts have been keeping an eye on Laboratory Co.’s stocks’ performance in the market.
In other news regarding Laboratory Co., current CEO Paul R. Kirchgraber recently sold 4,300 shares of the company’s stock on May 19 for an average price of $216.91 per share, amounting to a total transaction worth nearly $933,000. Following this sale, Kirchgraber now personally owns roughly over $2 million worth of LH stocks.
Likewise, Mark S. Schroeder (the company’s COO) sold 1,500 shares at an average price of $216.77 per share on May 18 — nearly two weeks after his CEO made his own sale — with a total transaction amounting to around $325,000.
Both sales were publicized in legal filings with the SEC and experts noted that insiders sold a total of 9,697 shares in LH stocks valued at approximately $2.14 million during the last quarter. A small percentage (0.65%) of current outstanding shares is owned by corporate insiders.
On another note, Laboratory Co. recently declared its quarterly dividend which is payable on June 8 for stockholders of record as of May 18th. This upcoming payout stands at $0.72 per share of LH stocks and represents an annualized dividend yield of 1.34%. As for its payout ratio, it currently clocks in at 26.13%.
Shares or NYSE LH opened at $215.67 on May 25, with its 50-day simple moving average fluctuating around $224.37 while its 200-day simple moving average is roughly around $234.93.
In terms of revenues, LH’s most recent quarterly earnings data showed a figure of $3.78 billion in revenue for the quarter with earnings per share sitting at $3.82 — lower than consensus estimates by roughly ($0.17). However, Analysts still predict an EPS rate of $16.83 for this year despite last quarter’s dip.
Overall, Laboratory Co.’s performance in both the market and revenue figures has been closely monitored by analysts and investors alike given the shift towards digitalization and innovative research ventures within the medical industry in recent years.
