Laboratory Corp of America Holdings' (NYSE:LH) Executive Vice President and Chief Legal Officer, Sandra D. van der Vaart, has recently sold shares of the company stock, according to a new SEC filing. The transactions, which took place on March 28, 2024, involved the sale of 3,553 shares at a price of $216.74 per share, totaling approximately $770,077.
This sale follows a series of transactions by van der Vaart that also included the acquisition of shares through the exercise of options and the disposition of shares to satisfy tax withholding obligations. Specifically, on March 27, van der Vaart acquired 6,158 shares with no transaction price listed, which was likely tied to the vesting of restricted stock units (RSUs) as indicated in the footnotes of the SEC filing. On the same day, 2,605 shares were disposed of at a price of $216.57 per share to cover tax withholdings, amounting to $564,164.
The reported transactions were part of a prearranged trading plan in accordance with Rule 10b5-1, which allows company insiders to establish predetermined trading plans for selling stocks they own. The footnotes also reveal that the RSUs were connected to a performance award granted in 2021 and vested following the spin-off of Fortrea Holdings Inc. by Laboratory Corp.
Following these transactions, van der Vaart's ownership in Laboratory Corp has adjusted to reflect the recent sales and acquisitions. Investors and market watchers often look to insider trading patterns for signals about the health and prospects of a company, although such transactions do not always indicate broader corporate shifts.
Laboratory Corp of America Holdings, with its trading symbol LH, is a leading healthcare diagnostics company, providing comprehensive clinical laboratory and end-to-end drug development services. The company's shares are publicly traded on the New York Stock Exchange.
InvestingPro Insights
As investors digest the recent insider trading activity at Laboratory Corp of America Holdings (NYSE:LH), they might also consider the company's broader financial health and market performance. According to real-time data from InvestingPro, Laboratory Corp has a market capitalization of $18.37 billion and is trading at an adjusted price-to-earnings (P/E) ratio of 27.16 for the last twelve months as of Q4 2023. This valuation metric suggests that the company is trading at a higher earnings multiple compared to historical averages. Furthermore, the company has exhibited a gross profit margin of 27.67% over the same period, indicating a solid profitability from its operations.
InvestingPro Tips highlight that Laboratory Corp's management has been actively engaging in share buybacks, signaling confidence in the company's value. This, coupled with a high shareholder yield, might be of particular interest to investors seeking companies with proactive capital return policies. Additionally, analysts have a positive outlook on the company's profitability, predicting Laboratory Corp will remain profitable this year and forecasting net income growth.
For those looking to delve deeper into the financials and forecasts for Laboratory Corp, there are additional InvestingPro Tips available at Investing.com/pro/LH. As an added benefit, readers can use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more insights to inform their investment decisions. With 9 analysts revising their earnings estimates downwards for the upcoming period, staying informed with comprehensive analysis is crucial, and InvestingPro offers a total of 9 tips that could help navigate the complexities of the market.
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