Is Laboratory Corp. of America Holdings (LH) A Good Stock To Buy?

Judging by the fact that Laboratory Corp. of America Holdings (NYSE:LH) has faced bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of fund managers that decided to sell off their entire stakes last quarter. Interestingly, Dmitry Balyasny’s Balyasny Asset Management sold off the biggest stake of the “upper crust” of funds followed by Insider Monkey, totaling close to $49.5 million in stock. David Harding’s fund, Winton Capital Management, also dropped its position, about $15.9 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Laboratory Corp. of America Holdings (NYSE:LH) but similarly valued. These stocks are Markel Corporation (NYSE:MKL), SK Telecom Co., Ltd. (ADR) (NYSE:SKM), FleetCor Technologies, Inc. (NYSE:FLT), and Church & Dwight Co., Inc. (NYSE:CHD). All of these stocks’ market caps are closest to LH’s market cap.

As you can see these stocks had an average of 26 investors with long positions and the average amount invested in these stocks was $1.41 billion. That figure was $1.88 billion in LH’s case. FleetCor Technologies, Inc. (NYSE:FLT) is the most popular stock in this table with 60 funds holding shares. On the other hand SK Telecom Co., Ltd. (ADR) (NYSE:SKM) is the least popular one with only 12 bullish hedge fund positions. Laboratory Corp. of America Holdings (NYSE:LH) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FleetCor Technologies, Inc. (NYSE:FLT) might be a better candidate to consider a long position.

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