Quest Diagnostics (NYSE:DGX) Reaches New 12-Month High Following Dividend Announcement

Key Points

• Quest Diagnostics reached a 52-week high, trading as high as $260.29 after announcing a quarterly dividend of $0.86 per share, equivalent to a 1.3% yield.
• The company beat quarterly expectations, reporting EPS of $3.00 versus $2.87 estimated and revenue of $3.10 billion; revenue rose 10% year over year.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $248.70, below the stock’s reported trading price near $259.58.

Quest Diagnostics Incorporated (NYSE:DGX - Get Free Report) hit a new 52-week high on Wednesday following a dividend announcement from the company. The company traded as high as $260.29 and last traded at $259.5840, with a volume of 42,577 shares. The stock had previously closed at $258.44.The newly announced dividend which will be paid on Wednesday, January 27th. Stockholders of record on Tuesday, January 12th will be issued a dividend of $0.86 per share. This represents a $3.44 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Tuesday, January 12th. Quest Diagnostics's payout ratio is currently 34.26%.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on DGX shares. Barclays upped their price objective on shares of Quest Diagnostics from $250.00 to $260.00 and gave the stock an "overweight" rating in a report on Wednesday, October 7th. Mizuho increased their target price on Quest Diagnostics from $235.00 to $260.00 and gave the company an "outperform" rating in a research note on Friday, July 24th. Wall Street Zen raised Quest Diagnostics from a "hold" rating to a "buy" rating in a report on Tuesday, July 28th. Argus set a $260.00 price target on Quest Diagnostics in a research report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. upped their price target on Quest Diagnostics from $220.00 to $250.00 and gave the stock a "neutral" rating in a report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $248.70.

Quest Diagnostics Price Performance

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.70 and a quick ratio of 1.58. The stock has a market capitalization of $28.60 billion, a P/E ratio of 25.87, a PEG ratio of 2.32 and a beta of 0.55. The company's 50 day simple moving average is $240.01 and its two-hundred day simple moving average is $214.44.

Quest Diagnostics (NYSE:DGX - Get Free Report) last posted its quarterly earnings data on Thursday, October 22nd. The medical research company reported $3.00 EPS for the quarter, topping analysts' consensus estimates of $2.87 by $0.13. The company had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.05 billion. Quest Diagnostics had a return on equity of 16.21% and a net margin of 9.53%. The business's revenue was up 10.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.60 earnings per share. As a group, equities analysts expect that Quest Diagnostics Incorporated will post 11.29 EPS for the current fiscal year.

Insider Buying and Selling at Quest Diagnostics

In other Quest Diagnostics news, Director Gary Pfeiffer sold 1,203 shares of the business's stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $243.00, for a total transaction of $292,329.00. Following the sale, the director directly owned 29,802 shares of the company's stock, valued at $7,241,886. The trade was a 3.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Michael Prevoznik sold 22,677 shares of the stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $243.11, for a total value of $5,513,005.47. Following the completion of the sale, the senior vice president directly owned 37,557 shares of the company's stock, valued at approximately $9,130,482.27. The trade was a 37.65% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 55,985 shares of company stock valued at $13,715,017 over the last quarter. Insiders own 0.88% of the company's stock.

Institutional Investors Weigh In On Quest Diagnostics

Hedge funds and other institutional investors have recently modified their holdings of the company. Next Level Wealth Planning LLC acquired a new stake in shares of Quest Diagnostics during the 3rd quarter worth $25,000. Ancora Advisors LLC bought a new stake in Quest Diagnostics during the second quarter worth about $29,000. Frazier Financial Advisors LLC lifted its position in Quest Diagnostics by 492.9% during the first quarter. Frazier Financial Advisors LLC now owns 166 shares of the medical research company's stock worth $33,000 after purchasing an additional 138 shares during the period. Meeder Asset Management Inc. lifted its position in Quest Diagnostics by 496.4% during the third quarter. Meeder Asset Management Inc. now owns 167 shares of the medical research company's stock worth $39,000 after purchasing an additional 139 shares during the period. Finally, Ameritas Advisory Services LLC acquired a new stake in Quest Diagnostics during the second quarter worth about $45,000. Institutional investors and hedge funds own 88.06% of the company's stock.

Quest Diagnostics Company Profile

Quest Diagnostics NYSE: DGX is a provider of diagnostic information services, conducting laboratory tests that help physicians and other health care professionals diagnose, monitor and manage medical conditions. Its services include routine blood and other clinical laboratory testing, anatomic pathology, and specialized molecular and genetic testing. The company serves patients, physicians, hospitals, health plans, employers and government organizations. In addition to testing performed through its laboratories and patient service centers, Quest offers services such as workplace drug testing and diagnostic support for clinical research.

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