Is It Worthwhile For Investors To Follow These Insider Trades On Laboratory Corporation of America Holdings (LH)?


Laboratory Corporation of America Holdings (NYSE:LH) finished Friday with a subtraction of -$0.01 to close at $235.48, a downside of -0.00 percent. An average of 421,200 shares of common stock have been traded in the last five days. There was a gain of $3.77 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 637,170 shares traded, while the 50-day average volume stands at 826,072.

LH stock has decreased by -2.17% in the last month. The company shares reached their 1-month lowest point of $222.88 on 12/19/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $200.32 and a high of $317.17 in 52 weeks. It has reached a new high 1 time so far this year and lost -25.06% or -$78.73 in price. In spite of this, the price is down -25.76% from the 52-week high.

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Insider Transactions

LH stock investors should be aware that Laboratory Corporation of America Holdings (LH) stock had its last reported insider trading activity 53 days ago on Nov 08. In this transaction, the insider spent $259,660. Chief Financial Officer, EVP, EISENBERG GLENN A, disposed of 25,000 shares at a price of $210.62 on Sep 26. The insider now owns more than $5,265,576 worth of shares. Prior to that, Chief Financial Officer, EVP EISENBERG GLENN A went on to Sale 32,100 shares at $253.94 each on Aug 03. An amount of $8,151,449 was transacted.

Valuation Metrics

Laboratory Corporation of America Holdings (LH) has a trailing price-to-earnings (P/E) ratio of 12.57. The stock’s beta is 1.06. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.37, the price-to-book (PB) ratio at 2.10, and the price-to-cash flow ratio at 14.69.

Financial Health

The quick ratio of Laboratory Corporation of America Holdings for the three months ended September 29 was 1.50, and the current ratio was 1.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.54 and a total debt to equity ratio of 0.54 for the quarter ending September 29. Its gross profit as reported stood at $5.62 billion compared to revenue of $16.12 billion.

Earnings Surprise

For the three-month period that ended September 29, Laboratory Corporation of America Holdings had $5.33 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $352.8 million in the quarter, while revenues of $358.6 million were shrunk -66.47%. The analyst consensus anticipated Laboratory Corporation of America Holdings’s latest quarter earnings to come in at $4.67 per share, but it turned out to be $4.68, a 0.20% surprise. For the quarter, EBITDA amounted to $626.5 million. Shareholders own equity worth $88.6 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Laboratory Corporation of America Holdings (LH) price momentum. RSI 9-day as of the close on 30 December was 58.64%, suggesting the stock is Neutral, with historical volatility in this time frame at 15.89%.

As of today, LH’s price is $233.37 +1.63% or $3.77 from its 5-day moving average. LH is currently trading -2.60% lower than its 20-day SMA and -6.87% lower than its 100-day SMA. However, the stock’s current price level is +12.77% above the SMA50 and -14.06% below the SMA200.

The stochastic %K and %D were 83.08% and 75.53%, respectively, and the average true range (ATR) was 4.75. With the 14-day stochastic at 93.05% and the average true range at 5.17, the RSI (14) stands at 54.87%. The stock has reached 2.27 on the 9-day MACD Oscillator while the 14-day reading was at 3.23.

Analyst Ratings

Citigroup downgraded Laboratory Corporation of America Holdings (NYSE: LH) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Laboratory Corporation of America Holdings (LH) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell LH, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 10 others rate it as a “buy”.

What is LH’s price target for the next 12 months?

Analysts predict a range of price targets between $250.00 and $315.00, with a median target of $270.00. Taking a look at these predictions, the average price target given by analysts for Laboratory Corporation of America Holdings (LH) stock is $277.31.


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