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

Key Points

• Quest Diagnostics has a consensus analyst rating of “Moderate Buy”, with 7 buy ratings and 7 hold ratings from 14 covering firms. The average 1-year price target is about $216.58.
• The company reported better-than-expected quarterly results, posting EPS of $2.50 versus estimates of $2.37 and revenue of $2.90 billion versus expectations of $2.83 billion. Revenue rose 9.2% year over year.
• Quest Diagnostics also announced a $1 billion share buyback authorized by its board, covering up to about 4.7% of outstanding shares. Stock repurchases are often viewed as a sign management believes the shares may be undervalued.

Quest Diagnostics Incorporated (NYSE:DGX - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the fourteen research firms that are covering the stock, Marketbeat.com reports. Seven investment analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $216.5833.

Several analysts have commented on DGX shares. Barclays lifted their price target on Quest Diagnostics from $225.00 to $230.00 and gave the company an "overweight" rating in a report on Wednesday, April 22nd. Jefferies Financial Group restated a "buy" rating and issued a $225.00 price target on shares of Quest Diagnostics in a report on Tuesday, April 21st. Mizuho lifted their price target on Quest Diagnostics from $210.00 to $235.00 and gave the company an "outperform" rating in a report on Thursday, February 12th. Truist Financial lifted their price target on Quest Diagnostics from $220.00 to $225.00 and gave the company a "hold" rating in a report on Wednesday, April 22nd. Finally, Evercore set a $225.00 price target on Quest Diagnostics in a report on Tuesday, April 21st.

Quest Diagnostics Stock Up 0.3%

DGX opened at $190.35 on Wednesday. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.18 and a quick ratio of 1.08. The stock has a market capitalization of $21.07 billion, a price-to-earnings ratio of 21.03, a price-to-earnings-growth ratio of 2.26 and a beta of 0.60. The business has a 50-day moving average of $196.95 and a two-hundred day moving average of $189.86. Quest Diagnostics has a 12 month low of $164.65 and a 12 month high of $213.50.

Quest Diagnostics (NYSE:DGX - Get Free Report) last posted its quarterly earnings results on Tuesday, April 21st. The medical research company reported $2.50 EPS for the quarter, beating the consensus estimate of $2.37 by $0.13. The company had revenue of $2.90 billion during the quarter, compared to analysts' expectations of $2.83 billion. Quest Diagnostics had a return on equity of 15.60% and a net margin of 9.07%.The firm's revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.94 EPS. Quest Diagnostics has set its FY 2026 guidance at 10.630-10.830 EPS. On average, research analysts expect that Quest Diagnostics will post 10.73 earnings per share for the current year.

Quest Diagnostics announced that its Board of Directors has initiated a share buyback program on Tuesday, February 10th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the medical research company to buy up to 4.7% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Insider Transactions at Quest Diagnostics

In other news, SVP Michael E. Prevoznik sold 3,878 shares of the business's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $206.21, for a total transaction of $799,682.38. Following the completion of the sale, the senior vice president owned 37,557 shares in the company, valued at approximately $7,744,628.97. The trade was a 9.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Patrick Plewman sold 2,855 shares of the business's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $206.21, for a total value of $588,729.55. Following the sale, the senior vice president owned 15,198 shares of the company's stock, valued at $3,133,979.58. The trade was a 15.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 18,421 shares of company stock worth $3,790,214 over the last 90 days. Company insiders own 0.88% of the company's stock.

Institutional Trading of Quest Diagnostics

A number of institutional investors have recently modified their holdings of DGX. Key Financial Inc grew its holdings in shares of Quest Diagnostics by 1,728.6% during the 1st quarter. Key Financial Inc now owns 128 shares of the medical research company's stock worth $25,000 after purchasing an additional 121 shares during the period. Quattro Advisors LLC acquired a new position in Quest Diagnostics during the 4th quarter worth approximately $25,000. JFS Wealth Advisors LLC lifted its position in 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 in the last quarter. Harbor Investment Advisory LLC lifted its position in Quest Diagnostics by 113.7% during the 4th quarter. Harbor Investment Advisory LLC now owns 156 shares of the medical research company's stock worth $27,000 after acquiring an additional 83 shares in the last quarter. Finally, DV Equities LLC acquired a new position in Quest Diagnostics during the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 88.06% of the company's stock.

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.

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