Quest Diagnostics Incorporated (NYSE:DGX) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Quest Diagnostics has received a consensus rating of "Moderate Buy" from 18 brokerage firms, with an average price target of $186.00 for the stock.
• The company recently reported $2.62 in earnings per share for the last quarter, exceeding analyst expectations of $2.57 and achieving a 15.2% year-over-year revenue increase.
• Quest Diagnostics has declared a quarterly dividend of $0.80, resulting in an annualized dividend yield of 1.7%.

Quest Diagnostics Incorporated (NYSE:DGX - Get Free Report) has been given a consensus rating of "Moderate Buy" by the eighteen brokerages that are covering the firm, Marketbeat.com reports. Ten research analysts have rated the stock with a hold recommendation, seven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $186.00.

A number of equities research analysts have weighed in on DGX shares. Wall Street Zen lowered Quest Diagnostics from a "buy" rating to a "hold" rating in a research report on Sunday, August 10th. William Blair reaffirmed an "outperform" rating on shares of Quest Diagnostics in a research report on Wednesday, July 23rd. Robert W. Baird reaffirmed a "neutral" rating and set a $194.00 target price on shares of Quest Diagnostics in a research report on Monday, August 25th. Truist Financial lifted their target price on Quest Diagnostics from $190.00 to $192.00 and gave the company a "hold" rating in a research report on Wednesday, July 23rd. Finally, UBS Group decreased their target price on Quest Diagnostics from $176.00 to $175.00 and set a "neutral" rating for the company in a research report on Friday, July 18th.

Quest Diagnostics Price Performance

Shares of DGX stock opened at $188.83 on Tuesday. Quest Diagnostics has a 52-week low of $146.17 and a 52-week high of $189.48. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.99 and a current ratio of 1.09. The firm has a market capitalization of $21.12 billion, a P/E ratio of 22.61, a P/E/G ratio of 2.51 and a beta of 0.54. The stock has a 50 day moving average price of $179.04 and a 200 day moving average price of $174.73.

Quest Diagnostics (NYSE:DGX - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The medical research company reported $2.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.57 by $0.05. The firm had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.73 billion. Quest Diagnostics had a return on equity of 15.24% and a net margin of 9.01%.Quest Diagnostics's quarterly revenue was up 15.2% compared to the same quarter last year. During the same period last year, the company earned $2.35 EPS. Quest Diagnostics has set its FY 2025 guidance at 9.630-9.830 EPS. As a group, sell-side analysts predict that Quest Diagnostics will post 9.7 earnings per share for the current year.

Quest Diagnostics Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, October 20th. Stockholders of record on Friday, October 3rd will be issued a $0.80 dividend. The ex-dividend date is Friday, October 3rd. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.7%. Quest Diagnostics's dividend payout ratio (DPR) is currently 38.32%.

Insider Activity

In other news, SVP Michael E. Prevoznik sold 28,288 shares of Quest Diagnostics stock in a transaction on Tuesday, September 23rd. The stock was sold at an average price of $187.12, for a total value of $5,293,250.56. Following the transaction, the senior vice president directly owned 38,117 shares in the company, valued at approximately $7,132,453.04. This trade represents a 42.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Patrick Plewman sold 5,535 shares of Quest Diagnostics stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $175.00, for a total value of $968,625.00. Following the completion of the transaction, the senior vice president owned 19,219 shares in the company, valued at $3,363,325. This represents a 22.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 52,959 shares of company stock worth $9,604,766. 8.16% of the stock is currently owned by company insiders.

Institutional Trading of Quest Diagnostics

Large investors have recently added to or reduced their stakes in the company. Pinnacle Bancorp Inc. grew its stake in Quest Diagnostics by 126.9% during the 2nd quarter. Pinnacle Bancorp Inc. now owns 152 shares of the medical research company's stock valued at $27,000 after purchasing an additional 85 shares during the last quarter. MTM Investment Management LLC purchased a new stake in Quest Diagnostics during the 2nd quarter valued at about $29,000. Bruce G. Allen Investments LLC grew its stake in Quest Diagnostics by 57.8% during the 1st quarter. Bruce G. Allen Investments LLC now owns 183 shares of the medical research company's stock valued at $31,000 after purchasing an additional 67 shares during the last quarter. First Horizon Advisors Inc. grew its stake in Quest Diagnostics by 76.6% during the 1st quarter. First Horizon Advisors Inc. now owns 189 shares of the medical research company's stock valued at $32,000 after purchasing an additional 82 shares during the last quarter. Finally, Golden State Wealth Management LLC grew its stake in Quest Diagnostics by 157.3% during the 1st quarter. Golden State Wealth Management LLC now owns 193 shares of the medical research company's stock valued at $33,000 after purchasing an additional 118 shares during the last quarter. Hedge funds and other institutional investors own 88.06% of the company's stock.

Quest Diagnostics Company Profile

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services.

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