Zacks Investment Research upgraded shares of Laboratory Corp. of America (NYSE:LH) from a sell rating to a hold rating in a research note released on Wednesday morning, Zacks.com reports. The firm currently has $172.00 target price on the medical research company’s stock.
According to Zacks, “Recently, LabCorp's Diagnostics grew organically in terms of both revenue and volume despite additional price reductions due to PAMA and the loss of exclusivity in two managed care contracts. New acquisitions like MI Bioresearch and Envigo look promising. In the second quarter, LabCorp reported strong underlying performance and organic growth across its Drug Development business banking on solid execution of three fundamental strategies. LabCorp exited the second quarter with earnings ahead of the Zacks Consensus Estimate but revenues lagging the mark.On the flip side, the disposition of businesses and the implementation of the PAMA dented growth. Unfavorable currency transaction continues to remain as a major headwind. The company expects the rest of 2019 to continue to witness similar hurdles.”
A number of other equities analysts have also recently issued reports on the company. Barclays set a $200.00 price target on Laboratory Corp. of America and gave the stock a buy rating in a report on Monday, July 15th. Bank of America upgraded Laboratory Corp. of America from an underperform rating to a neutral rating and set a $174.60 target price on the stock in a report on Tuesday, July 16th. Deutsche Bank upgraded Laboratory Corp. of America from a hold rating to a buy rating and increased their target price for the stock from $180.00 to $220.00 in a report on Thursday, June 20th. KeyCorp increased their target price on Laboratory Corp. of America from $172.00 to $192.00 and gave the stock an overweight rating in a report on Thursday, August 8th. Finally, Morgan Stanley increased their target price on Laboratory Corp. of America from $190.00 to $201.00 and gave the stock an overweight rating in a report on Friday, August 23rd. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and eleven have issued a buy rating to the stock. Laboratory Corp. of America currently has an average rating of Buy and a consensus target price of $184.57.
Shares of Laboratory Corp. of America stock traded up $1.26 on Wednesday, reaching $165.76. 431,693 shares of the company’s stock were exchanged, compared to its average volume of 558,992. The company has a market capitalization of $16.07 billion, a P/E ratio of 15.04, a price-to-earnings-growth ratio of 1.84 and a beta of 1.03. Laboratory Corp. of America has a 52 week low of $119.38 and a 52 week high of $178.44. The firm’s 50-day moving average is $168.68 and its two-hundred day moving average is $165.53. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.05 and a current ratio of 1.14.
Laboratory Corp. of America (NYSE:LH) last posted its quarterly earnings results on Thursday, July 25th. The medical research company reported $2.93 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.90 by $0.03. The firm had revenue of $2.88 billion for the quarter, compared to analysts’ expectations of $2.89 billion. Laboratory Corp. of America had a return on equity of 16.28% and a net margin of 8.19%. The company’s revenue for the quarter was up .5% compared to the same quarter last year. During the same period in the prior year, the business earned $2.98 EPS. On average, analysts expect that Laboratory Corp. of America will post 11.29 EPS for the current fiscal year.
In other Laboratory Corp. of America news, Director R Sanders Williams sold 500 shares of the firm’s stock in a transaction on Monday, August 5th. The stock was sold at an average price of $162.91, for a total transaction of $81,455.00. Following the transaction, the director now directly owns 6,886 shares in the company, valued at approximately $1,121,798.26. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Kerrii B. Anderson sold 2,600 shares of the firm’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $171.85, for a total value of $446,810.00. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 11,468 shares of company stock worth $1,946,168. Company insiders own 0.74% of the company’s stock.
Large investors have recently modified their holdings of the business. Cambridge Investment Research Advisors Inc. increased its position in shares of Laboratory Corp. of America by 4.7% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 8,191 shares of the medical research company’s stock valued at $1,416,000 after purchasing an additional 364 shares during the last quarter. Bank of Montreal Can increased its position in shares of Laboratory Corp. of America by 0.8% during the 2nd quarter. Bank of Montreal Can now owns 231,159 shares of the medical research company’s stock valued at $39,967,000 after purchasing an additional 1,914 shares during the last quarter. Ellington Management Group LLC purchased a new stake in shares of Laboratory Corp. of America during the 2nd quarter valued at $415,000. Clear Harbor Asset Management LLC increased its position in shares of Laboratory Corp. of America by 18.0% during the 2nd quarter. Clear Harbor Asset Management LLC now owns 2,298 shares of the medical research company’s stock valued at $397,000 after purchasing an additional 350 shares during the last quarter. Finally, Nomura Holdings Inc. increased its position in shares of Laboratory Corp. of America by 65.9% during the 2nd quarter. Nomura Holdings Inc. now owns 42,101 shares of the medical research company’s stock valued at $7,346,000 after purchasing an additional 16,729 shares during the last quarter. Institutional investors and hedge funds own 90.19% of the company’s stock.
About Laboratory Corp. of America
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. It operates in two segments, LabCorp Diagnostics (LCD) and Covance Drug Development. It offers various clinical laboratory tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, hemoglobin A1C and vitamin D products, prostate-specific antigens, tests for sexually-transmitted diseases, hepatitis C tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests.
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