Are Insiders Selling These 3 High-Potential Stocks Too Early?

Moving on to the last company with insider selling discussed in this article, Laboratory Corp. of America Holdings (NYSE:LH) saw one of its executives sell shares last week. F. Samuel Eberts III, Chief Legal Officer and Secretary since January 2009, discarded 1,215 shares on Friday at a price of $119.05 per share, cutting his stake to 18,066 units of common stock. The shares of the independent clinical laboratory company are trading at relatively the same level they were trading at exactly one year ago, but valuation metrics point to upside in the future. Analysts’ high earnings expectations for fiscal year 2016 yield a forward P/E ratio of 13.08.

The company reported net revenue of $6.26 billion for the nine months that ended September 30, compared with $4.50 billion reported for the same period of the prior year. That increase was achieved as a result of the acquisition of Covance Inc., which took place at the beginning of 2015, and strong organic volume growth in LCD and tuck-in acquisitions. Most importantly, Laboratory Corp. reported diluted net income per share of $4.21 for the first nine months of 2015, up from $2.69 per share reported for the same period of 2014. Andreas Halvorsen’s Viking Global acquired a 5.05 million-share stake in Laboratory Corp. of America Holdings (NYSE:LH) during the third quarter.

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