Fox Run Management L.L.C. Makes New Investment in Quest Diagnostics Incorporated $DGX

Key Points

• Fox Run Management L.L.C. opened a new position in Quest Diagnostics during the fourth quarter, buying 9,690 shares valued at about $1.68 million.
• Quest Diagnostics reported better-than-expected first-quarter results, with EPS of $2.50 and revenue of $2.90 billion, both ahead of analyst estimates, while revenue rose 9.2% year over year.
• The company also approved a $1 billion share repurchase plan and announced a quarterly dividend of $0.86 per share, signaling capital returns to shareholders.

Fox Run Management L.L.C. acquired a new position in shares of Quest Diagnostics Incorporated (NYSE:DGX - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 9,690 shares of the medical research company's stock, valued at approximately $1,682,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in DGX. Norges Bank bought a new stake in Quest Diagnostics during the 4th quarter worth approximately $229,522,000. Boston Partners increased its holdings in Quest Diagnostics by 32.8% during the 3rd quarter. Boston Partners now owns 4,036,881 shares of the medical research company's stock worth $767,978,000 after purchasing an additional 997,033 shares in the last quarter. EdgePoint Investment Group Inc. increased its holdings in Quest Diagnostics by 66,757.0% during the 3rd quarter. EdgePoint Investment Group Inc. now owns 849,752 shares of the medical research company's stock worth $161,946,000 after purchasing an additional 848,481 shares in the last quarter. UBS Group AG increased its holdings in Quest Diagnostics by 67.8% during the 4th quarter. UBS Group AG now owns 1,114,451 shares of the medical research company's stock worth $193,391,000 after purchasing an additional 450,161 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in Quest Diagnostics by 36.3% during the 2nd quarter. Bank of America Corp DE now owns 1,599,602 shares of the medical research company's stock worth $287,337,000 after purchasing an additional 426,399 shares in the last quarter. 88.06% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, CEO J. E. Davis sold 10,000 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $194.14, for a total value of $1,941,400.00. Following the transaction, the chief executive officer owned 132,423 shares in the company, valued at $25,708,601.22. The trade was a 7.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Karthik Kuppusamy sold 8,147 shares of the company's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $200.00, for a total value of $1,629,400.00. Following the completion of the transaction, the senior vice president owned 13,510 shares in the company, valued at approximately $2,702,000. The trade was a 37.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.88% of the stock is owned by insiders.

Quest Diagnostics Price Performance

Shares of NYSE DGX opened at $197.07 on Tuesday. Quest Diagnostics Incorporated has a twelve month low of $164.65 and a twelve month high of $213.50. The stock's 50 day moving average price is $194.42 and its 200-day moving average price is $191.45. The company has a market capitalization of $21.82 billion, a PE ratio of 21.78, a PEG ratio of 2.39 and a beta of 0.59. The company has a quick ratio of 1.08, a current ratio of 1.18 and a debt-to-equity ratio of 0.67.

Quest Diagnostics (NYSE:DGX - Get Free Report) last announced its earnings results on Tuesday, April 21st. The medical research company reported $2.50 earnings per share for the quarter, topping analysts' consensus estimates of $2.37 by $0.13. Quest Diagnostics had a return on equity of 15.60% and a net margin of 9.07%.The firm had revenue of $2.90 billion for the quarter, compared to the consensus estimate of $2.83 billion. During the same quarter in the previous year, the business earned $1.94 EPS. The company's revenue was up 9.2% compared to the same quarter last year. Quest Diagnostics has set its FY 2026 guidance at 10.630-10.830 EPS. On average, equities analysts anticipate that Quest Diagnostics Incorporated will post 10.72 EPS for the current year.

Quest Diagnostics declared that its board has approved a stock repurchase plan 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 buy up to 4.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's management believes its shares are undervalued.

Quest Diagnostics Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Wednesday, July 8th will be paid a $0.86 dividend. This represents a $3.44 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Wednesday, July 8th. Quest Diagnostics's payout ratio is presently 38.01%.

Analyst Ratings Changes

A number of brokerages have commented on DGX. Citigroup boosted their price objective on Quest Diagnostics from $190.00 to $215.00 and gave the stock a "neutral" rating in a report on Tuesday, February 10th. Wall Street Zen lowered Quest Diagnostics from a "buy" rating to a "hold" rating in a report on Saturday, May 30th. Barclays boosted their price objective on Quest Diagnostics from $225.00 to $230.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. UBS Group boosted their price objective on Quest Diagnostics from $210.00 to $220.00 and gave the stock a "neutral" rating in a report on Wednesday, April 22nd. Finally, Jefferies Financial Group reissued a "buy" rating and set a $225.00 price objective on shares of Quest Diagnostics in a report on Tuesday, April 21st. Seven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, Quest Diagnostics currently has a consensus rating of "Moderate Buy" and an average price target of $216.58.

Quest Diagnostics Company Profile

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.

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