Adam H. Schechter, President and CEO of Labcorp Holdings Inc. (NYSE:LH), recently sold 6,189 shares of the company's common stock, according to a regulatory filing. The shares were sold at a price of $243.47 each, totaling approximately $1.5 million. Following the transaction, Schechter retains ownership of 87,441 shares in the company. The sale was executed as part of a pre-arranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined schedule for selling stocks.
In other recent news, Labcorp Holdings has reported a 7% year-over-year revenue increase to $3.3 billion in its third-quarter earnings call for 2024. The company's diagnostics revenue grew by 9%, and biopharma laboratory services rose by 3%. Adjusted earnings per share (EPS) were up by 4% at $3.50. Despite challenges posed by Hurricanes Helene and Milton, Labcorp managed to maintain a positive outlook, bolstered by strategic acquisitions and the introduction of new products.
Labcorp's adjusted operating income stood at $441 million, with a slight margin decline primarily due to the Invitae (OTC:NVTAQ) acquisition. The company expects to achieve $100 million to $125 million in savings from its LaunchPad initiative and estimates capital expenditures to remain around 3.5% of revenue. Labcorp projects enterprise revenue growth of 6.6% to 7.3% for 2024 and adjusted EPS guidance is set between $14.30 and $14.70.
These recent developments indicate that Labcorp is successfully navigating challenges while capitalizing on strategic initiatives to drive growth. The company is focusing on acquisitions that are accretive in the first year and return their cost of capital within two to three years. Labcorp's leadership expressed confidence in their ability to maintain growth momentum, supported by a robust pipeline of business development opportunities and the ongoing success of the LaunchPad initiative.
InvestingPro Insights
As Adam H. Schechter's recent stock sale catches investor attention, it's worth examining Labcorp's current financial position and market performance. According to InvestingPro data, Labcorp boasts a market capitalization of $20.43 billion, reflecting its significant presence in the Healthcare Providers & Services industry.
The company's stock has shown strong momentum, with a 12.88% price return over the past month and trading near its 52-week high. This aligns with an InvestingPro Tip indicating that Labcorp has been a strong performer recently. However, another InvestingPro Tip suggests that the stock's RSI indicates it may be in overbought territory, which could be relevant to investors considering the timing of Schechter's sale.
Labcorp's financial health appears robust, with revenue of $12.71 billion over the last twelve months and a 5.43% revenue growth rate. The company's profitability is also noteworthy, as highlighted by an InvestingPro Tip stating that Labcorp is expected to remain profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for Labcorp. These tips could provide valuable context for understanding the company's performance and future prospects in light of the recent insider sale.
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