Quest Diagnostics (NYSE:DGX) Sets New 12-Month High – Time to Buy?
by Michael Walen · The Markets DailyQuest Diagnostics Incorporated (NYSE:DGX – Get Free Report) hit a new 52-week high on Friday . The stock traded as high as $213.37 and last traded at $213.40, with a volume of 190132 shares. The stock had previously closed at $211.10.
Wall Street Analysts Forecast Growth
DGX has been the topic of several research analyst reports. Wall Street Zen downgraded shares of Quest Diagnostics from a “buy” rating to a “hold” rating in a research report on Sunday, February 22nd. Robert W. Baird set a $219.00 price target on Quest Diagnostics in a research note on Wednesday, February 11th. Barclays raised their price objective on Quest Diagnostics from $210.00 to $225.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 11th. Evercore set a $220.00 price objective on shares of Quest Diagnostics in a research note on Wednesday, February 11th. Finally, Truist Financial boosted their target price on shares of Quest Diagnostics from $205.00 to $220.00 and gave the company a “hold” rating in a research report on Wednesday, February 11th. Eight analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, Quest Diagnostics currently has an average rating of “Moderate Buy” and an average target price of $210.29.
View Our Latest Stock Report on Quest Diagnostics
Quest Diagnostics Stock Up 0.3%
The stock has a market cap of $23.54 billion, a price-to-earnings ratio of 24.19, a PEG ratio of 2.68 and a beta of 0.66. The business’s 50 day moving average is $187.93 and its 200-day moving average is $184.57. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.96 and a current ratio of 1.04.
Quest Diagnostics (NYSE:DGX – Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The medical research company reported $2.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.35 by $0.07. The business had revenue of $2.81 billion for the quarter, compared to the consensus estimate of $2.75 billion. Quest Diagnostics had a net margin of 8.99% and a return on equity of 15.57%. The company’s revenue was up 7.1% compared to the same quarter last year. During the same period last year, the firm posted $2.23 earnings per share. Quest Diagnostics has set its FY 2026 guidance at 9.45-9.650 EPS. On average, sell-side analysts predict that Quest Diagnostics Incorporated will post 9.7 EPS for the current fiscal year.
Quest Diagnostics Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Monday, April 20th. Stockholders of record on Monday, April 6th will be given a $0.86 dividend. This represents a $3.44 annualized dividend and a dividend yield of 1.6%. This is a boost from Quest Diagnostics’s previous quarterly dividend of $0.80. The ex-dividend date is Monday, April 6th. Quest Diagnostics’s dividend payout ratio (DPR) is 36.57%.
Quest Diagnostics announced that its Board of Directors has initiated a share buyback program on Tuesday, February 10th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the medical research company to purchase up to 4.7% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s board of directors believes its stock is undervalued.
Insider Activity at Quest Diagnostics
In related news, SVP Michael E. Prevoznik sold 1,111 shares of the stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $204.83, for a total value of $227,566.13. Following the completion of the transaction, the senior vice president directly owned 38,371 shares of the company’s stock, valued at approximately $7,859,531.93. This represents a 2.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Patrick Plewman sold 5,662 shares of Quest Diagnostics stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $204.00, for a total transaction of $1,155,048.00. Following the sale, the senior vice president directly owned 15,381 shares in the company, valued at approximately $3,137,724. This trade represents a 26.91% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 9,164 shares of company stock valued at $1,872,363. 8.16% of the stock is owned by insiders.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently made changes to their positions in the stock. Quattro Advisors LLC purchased a new position in Quest Diagnostics during the fourth quarter worth approximately $25,000. JFS Wealth Advisors LLC raised its holdings in shares of Quest Diagnostics by 114.3% during the 4th quarter. JFS Wealth Advisors LLC now owns 150 shares of the medical research company’s stock worth $26,000 after acquiring an additional 80 shares during the period. Harbor Investment Advisory LLC boosted its holdings in Quest Diagnostics by 113.7% in the 4th quarter. Harbor Investment Advisory LLC now owns 156 shares of the medical research company’s stock valued at $27,000 after purchasing an additional 83 shares during the last quarter. DV Equities LLC purchased a new position in Quest Diagnostics in the fourth quarter worth approximately $27,000. Finally, MTM Investment Management LLC acquired a new stake in shares of Quest Diagnostics during the 2nd quarter worth about $29,000. 88.06% of the stock is currently owned by institutional investors and hedge funds.
About Quest Diagnostics
Quest Diagnostics (NYSE: DGX) is a leading provider of diagnostic information services that supports clinical decision-making for patients, physicians and healthcare organizations. The company operates a network of clinical laboratories and patient service centers that perform a broad range of laboratory tests and diagnostic assays used in routine care, disease diagnosis, monitoring and screening.
Its services span core clinical laboratory testing, anatomic pathology, molecular and genomic diagnostics, infectious disease testing and toxicology.