Quest Diagnostics (NYSE:DGX) Reaches New 52-Week High - Time to Buy?

Key Points

• Quest Diagnostics shares reached a new 52-week high, trading as high as $248.65 and closing near $247, up 3.9%.
• Analyst sentiment is broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $236.31, although the stock is trading above that target.
• The company reported quarterly EPS of $3.12, beating estimates by $0.30, while revenue rose 10.2% year over year to $3.04 billion. Quest also declared a quarterly dividend of $0.86, providing a 1.4% annualized yield.

Quest Diagnostics Incorporated (NYSE:DGX - Get Free Report)'s stock price hit a new 52-week high on Wednesday . The stock traded as high as $248.65 and last traded at $247.1970, with a volume of 1373537 shares. The stock had previously closed at $237.89.

Analyst Ratings Changes

A number of brokerages have recently issued reports on DGX. Wall Street Zen upgraded shares of Quest Diagnostics from a "hold" rating to a "buy" rating in a research report on Tuesday, July 28th. Mizuho upped their price objective on Quest Diagnostics from $235.00 to $260.00 and gave the stock an "outperform" rating in a report on Friday, July 24th. Argus set a $260.00 target price on shares of Quest Diagnostics in a report on Wednesday, July 29th. UBS Group increased their price objective on shares of Quest Diagnostics from $232.00 to $245.00 and gave the company a "neutral" rating in a research note on Tuesday, September 8th. Finally, Weiss Ratings raised Quest Diagnostics from a "buy (b+)" rating to a "buy (a-)" rating in a report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Quest Diagnostics presently has an average rating of "Moderate Buy" and a consensus target price of $236.31.

Quest Diagnostics Trading Up 3.9%

The company has a quick ratio of 1.46, a current ratio of 1.59 and a debt-to-equity ratio of 0.72. The firm's 50 day simple moving average is $230.89 and its 200-day simple moving average is $209.88. The company has a market capitalization of $27.28 billion, a PE ratio of 26.24, a P/E/G ratio of 2.17 and a beta of 0.55.

Quest Diagnostics (NYSE:DGX - Get Free Report) last issued its earnings results on Thursday, July 23rd. The medical research company reported $3.12 EPS for the quarter, beating analysts' consensus estimates of $2.82 by $0.30. The business had revenue of $3.04 billion for the quarter, compared to the consensus estimate of $2.97 billion. Quest Diagnostics had a net margin of 9.18% and a return on equity of 16.01%. The business's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.62 EPS. Quest Diagnostics has set its FY 2026 guidance at 11.050-11.250 EPS. As a group, equities research analysts anticipate that Quest Diagnostics Incorporated will post 11.15 EPS for the current year.

Quest Diagnostics Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Tuesday, October 6th will be given a $0.86 dividend. The ex-dividend date of this dividend is Tuesday, October 6th. This represents a $3.44 annualized dividend and a yield of 1.4%. Quest Diagnostics's dividend payout ratio (DPR) is 36.52%.

Insiders Place Their Bets

In other news, SVP Mark Delaney sold 1,600 shares of the company's stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $235.18, for a total value of $376,288.00. Following the completion of the sale, the senior vice president owned 10,335 shares of the company's stock, valued at $2,430,585.30. This represents a 13.41% decrease in their ownership of the stock. 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 Michael Prevoznik sold 22,677 shares of the firm's stock in a transaction dated 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 sale, the senior vice president owned 37,557 shares in the company, valued at approximately $9,130,482.27. The trade was a 37.65% decrease in their ownership of the stock. 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. Insiders have sold a total of 34,277 shares of company stock worth $8,316,493 over the last quarter. 0.88% of the stock is owned by corporate insiders.

Institutional Trading of Quest Diagnostics

A number of hedge funds and other institutional investors have recently modified their holdings of DGX. Sequoia Financial Advisors LLC boosted its holdings in Quest Diagnostics by 25.0% in the second quarter. Sequoia Financial Advisors LLC now owns 33,797 shares of the medical research company's stock valued at $7,163,000 after purchasing an additional 6,767 shares during the last quarter. Pinnacle Wealth Management Advisory Group LLC purchased a new stake in Quest Diagnostics during the 2nd quarter worth approximately $226,000. Integrated Wealth Concepts LLC raised its position in shares of Quest Diagnostics by 5.2% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 11,961 shares of the medical research company's stock valued at $2,535,000 after purchasing an additional 589 shares in the last quarter. NewEdge Advisors LLC raised its position in shares of Quest Diagnostics by 4.6% in the 2nd quarter. NewEdge Advisors LLC now owns 12,508 shares of the medical research company's stock valued at $2,651,000 after purchasing an additional 550 shares in the last quarter. Finally, Baird Financial Group Inc. boosted its stake in shares of Quest Diagnostics by 4.2% during the 2nd quarter. Baird Financial Group Inc. now owns 17,006 shares of the medical research company's stock valued at $3,604,000 after buying an additional 678 shares during the last quarter. 88.06% of the stock is owned by hedge funds and other institutional investors.

About Quest Diagnostics

Quest Diagnostics Incorporated NYSE: DGX is a provider of diagnostic information services. The company performs laboratory testing used to help diagnose, monitor and manage diseases and other health conditions, serving physicians, hospitals, health plans, employers, government agencies and individual consumers.

Its services include routine blood and urine testing, advanced and esoteric diagnostics, molecular and genetic testing, anatomic pathology, cancer testing, drug screening and wellness-related assessments.

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