Labcorp Holdings CEO Adam Schechter sells $1.5 million in stock

Published 13/02/2025, 17:56
Labcorp Holdings CEO Adam Schechter sells $1.5 million in stock

Adam H. Schechter, the President and CEO of Labcorp Holdings Inc. (NYSE:LH), recently sold 6,121 shares of the company’s common stock. The transaction, which took place on February 11, 2025, was executed at a price of $244.62 per share, totaling approximately $1.5 million. Following this sale, Schechter retains ownership of 86,445 shares. According to InvestingPro data, the stock is currently trading near its 52-week high of $258.59, with analysis indicating the stock is slightly overvalued at current levels.

In addition to the sale, Schechter acquired 2,963 shares of common stock through the exercise of restricted stock units, with no cash exchanged for these transactions. These units were part of a previously established plan and represent the right to receive one share of Labcorp common stock per unit. The company, which maintains a "GOOD" Financial Health Score according to InvestingPro, has been actively managing its capital structure, with management aggressively buying back shares.

The filing also detailed a transaction involving 1,226 shares withheld to satisfy tax obligations, priced at $245.14 per share, amounting to $300,541. Schechter’s transactions were conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stock. With a market capitalization of $20.4 billion and generally low price volatility, Labcorp remains a prominent player in the Healthcare Providers & Services industry. Discover more insights about LH and access comprehensive analysis through the Pro Research Report, available exclusively on InvestingPro.

In other recent news, Laboratory Corporation of America, known as LabCorp, has been the subject of several significant developments. Truist Securities raised LabCorp’s price target to $285, maintaining a Buy rating, due to the company’s robust fourth-quarter performance and promising 2025 outlook. Similarly, Jefferies analyst Tycho Peterson increased the price target to $290, also maintaining a Buy rating, noting the company’s strong free cash flow and future growth potential.

LabCorp also expanded its credit facility from $300 million to $700 million, providing the company with increased financial flexibility. Evercore ISI upgraded LabCorp’s stock to Outperform and raised the price target to $265, reflecting a positive outlook on the company’s future earnings, contributions from Invitae (OTC:NVTAQ), and improvements in the Business Lines Services (BLS) segment.

Furthermore, LabCorp released a new H5 bird flu molecular test in response to a multistate outbreak, demonstrating the company’s commitment to public health preparedness. These recent developments underscore LabCorp’s strong market position and growth strategies, as noted by analysts from Truist Securities, Jefferies, and Evercore ISI.

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