Zacks Investment Research Downgrades Laboratory Corporation of America Holdings (LH) to Hold

Zacks Investment Research downgraded shares of Laboratory Corporation of America Holdings (NYSE:LH) from a buy rating to a hold rating in a report released on Friday morning.

According to Zacks, “LabCorp’s third-quarter earnings topped the Zacks Consensus Estimate. Strong year-over-year increase in both earnings and revenues were encouraging too. LabCorp Diagnostics business was strong on improving price, mix, acquisition and favorable foreign exchange. Also after several quarters of dull show, Covance Drug Development reported strong growth on the back of the acquisition of Chiltern, strong organic growth and favorable foreign currency translation. An increased 2017 guidance boosts investors’ confidence indicating chances of this bullish trend to be maintained in the fourth quarter too. Over the last six months LabCorp has been trading above the broader industry. On the flip side, revenue growth was constrained by the impact from multiple hurricanes during the quarter. Also, the current economic uncertainty including challenging volume environment for testing laboratories and utilization weaknesses are looming headwinds.”

Several other analysts have also issued reports on the stock. Robert W. Baird reiterated a hold rating and issued a $150.00 target price on shares of Laboratory Corporation of America Holdings in a research report on Friday. Barclays PLC lifted their target price on shares of Laboratory Corporation of America Holdings from $183.00 to $190.00 and gave the company an overweight rating in a research report on Thursday, October 26th. Deutsche Bank AG lifted their target price on shares of Laboratory Corporation of America Holdings from $170.00 to $172.00 and gave the company a buy rating in a research report on Thursday, October 26th. Craig Hallum restated a buy rating and set a $180.00 price target (up from $175.00) on shares of Laboratory Corporation of America Holdings in a research report on Thursday, October 26th. Finally, Jefferies Group LLC restated a hold rating and set a $170.00 price target on shares of Laboratory Corporation of America Holdings in a research report on Friday, October 20th. Seven research analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company’s stock. Laboratory Corporation of America Holdings currently has an average rating of Buy and a consensus target price of $169.00.

Laboratory Corporation of America Holdings (NYSE:LH) opened at 154.17 on Friday. Laboratory Corporation of America Holdings has a 12-month low of $119.51 and a 12-month high of $164.22. The company has a market cap of $15.69 billion, a P/E ratio of 21.59 and a beta of 0.92. The firm’s 50 day moving average is $152.12 and its 200 day moving average is $149.60.

Laboratory Corporation of America Holdings (NYSE:LH) last announced its earnings results on Wednesday, October 25th. The medical research company reported $2.46 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.38 by $0.08. Laboratory Corporation of America Holdings had a net margin of 7.40% and a return on equity of 16.75%. The business had revenue of $2.60 billion for the quarter, compared to analyst estimates of $2.55 billion. During the same quarter last year, the business earned $2.25 earnings per share. The company’s revenue for the quarter was up 9.5% compared to the same quarter last year. Equities research analysts anticipate that Laboratory Corporation of America Holdings will post $9.52 EPS for the current fiscal year.

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In other Laboratory Corporation of America Holdings news, CEO David P. King sold 44,687 shares of the business’s stock in a transaction dated Wednesday, September 6th. The shares were sold at an average price of $156.86, for a total value of $7,009,602.82. Following the transaction, the chief executive officer now directly owns 258,753 shares in the company, valued at approximately $40,587,995.58. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO David P. King sold 132,713 shares of the business’s stock in a transaction dated Tuesday, September 5th. The shares were sold at an average price of $157.06, for a total transaction of $20,843,903.78. The disclosure for this sale can be found here. Insiders sold a total of 212,000 shares of company stock worth $33,229,265 over the last quarter. 0.90% of the stock is currently owned by company insiders.

A number of large investors have recently bought and sold shares of LH. Janus Henderson Group PLC boosted its holdings in Laboratory Corporation of America Holdings by 5,992.1% in the 2nd quarter. Janus Henderson Group PLC now owns 889,631 shares of the medical research company’s stock valued at $137,128,000 after purchasing an additional 875,028 shares during the last quarter. Schroder Investment Management Group boosted its holdings in Laboratory Corporation of America Holdings by 1,337.1% in the 2nd quarter. Schroder Investment Management Group now owns 860,802 shares of the medical research company’s stock valued at $130,885,000 after purchasing an additional 800,902 shares during the last quarter. UBS Asset Management Americas Inc. boosted its holdings in Laboratory Corporation of America Holdings by 70.5% in the 2nd quarter. UBS Asset Management Americas Inc. now owns 1,543,126 shares of the medical research company’s stock valued at $237,857,000 after purchasing an additional 637,848 shares during the last quarter. Empyrean Capital Partners LP acquired a new position in Laboratory Corporation of America Holdings in the 2nd quarter valued at about $92,484,000. Finally, Bessemer Group Inc. boosted its holdings in Laboratory Corporation of America Holdings by 43.6% in the 2nd quarter. Bessemer Group Inc. now owns 1,288,017 shares of the medical research company’s stock valued at $198,535,000 after purchasing an additional 391,145 shares during the last quarter. Institutional investors own 93.39% of the company’s stock.

Laboratory Corporation of America Holdings Company Profile

Laboratory Corporation of America Holdings is a life sciences company that is integrated in guiding patient care, providing clinical laboratory and end-to-end drug development services. The Company operates as a healthcare diagnostics company. The Company operates through two segments: LabCorp Diagnostics (LCD) and Covance Drug Development (CDD).

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