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Labcorp Reviewing Structure, Strategy in Bid to Boost Stock Price

NEW YORK – Laboratory Corporation of America said after the close of the market on Tuesday that its board is undertaking a review of its structure and capital allocation structure with the goal of improving its stock price.

The Burlington, North Carolina-based company said that its board and management team believed its value is "not being appropriately reflected in [its] current stock price."

It added that it had hired Goldman Sachs to support the review process.

Last month, Jefferies analyst Brian Tanquilut suggested in a client note that a recent investment in Labcorp by activist investor Jana Partners could lead the lab firm to review or restructure its business, with selling or spinning off its Covance business a potential option. Jana purchased 811,661 shares of Labcorp at the end of 2020, which makes it one of the investor's five largest holdings.

In Wednesday morning trading on the New York Stock Exchange, Labcorp stock was up 5 percent to $251.