Quest Diagnostics (NYSE:DGX) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Quest Diagnostics has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a shift in analyst perspective on the stock.
• The company's stock has a current target price average of $186.00, with nine analysts rating it as a hold and eight as a buy.
• In its latest quarter, Quest Diagnostics reported $2.62 EPS, exceeding expectations and showing a year-over-year revenue growth of 15.2%.

Quest Diagnostics (NYSE:DGX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday.

DGX has been the subject of several other research reports. Robert W. Baird boosted their price objective on shares of Quest Diagnostics from $191.00 to $194.00 and gave the company an "outperform" rating in a research note on Wednesday, April 23rd. Barclays boosted their price objective on shares of Quest Diagnostics from $175.00 to $185.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 23rd. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Quest Diagnostics from $160.00 to $178.00 and gave the company a "hold" rating in a research note on Wednesday, July 23rd. JPMorgan Chase & Co. lifted their target price on shares of Quest Diagnostics from $180.00 to $190.00 and gave the company a "neutral" rating in a research report on Tuesday, May 6th. Finally, UBS Group dropped their target price on shares of Quest Diagnostics from $176.00 to $175.00 and set a "neutral" rating for the company in a research report on Friday, July 18th. Nine investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $186.00.

Quest Diagnostics Price Performance

Shares of NYSE:DGX opened at $177.09 on Friday. The company has a 50 day moving average of $174.20 and a 200 day moving average of $171.05. The stock has a market cap of $19.80 billion, a P/E ratio of 21.21, a P/E/G ratio of 2.35 and a beta of 0.46. Quest Diagnostics has a 12 month low of $146.17 and a 12 month high of $182.38. The company has a current ratio of 1.09, a quick ratio of 0.99 and a debt-to-equity ratio of 0.71.

Quest Diagnostics (NYSE:DGX - Get Free Report) last issued its quarterly earnings data on Tuesday, July 22nd. The medical research company reported $2.62 EPS for the quarter, beating the consensus estimate of $2.57 by $0.05. The company had revenue of $2.76 billion during the quarter, compared to analysts' expectations of $2.73 billion. Quest Diagnostics had a net margin of 9.01% and a return on equity of 15.24%. Quest Diagnostics's revenue for the quarter was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.35 earnings per share. As a group, sell-side analysts forecast that Quest Diagnostics will post 9.7 EPS for the current fiscal year.

Insider Activity at Quest Diagnostics

In related news, SVP Patrick Plewman sold 5,535 shares of the company's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $175.00, for a total transaction of $968,625.00. Following the completion of the sale, the senior vice president directly owned 19,219 shares in the company, valued at $3,363,325. This represents a 22.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, SVP Mark E. Delaney sold 874 shares of the company's stock in a transaction on Monday, May 12th. The shares were sold at an average price of $175.72, for a total transaction of $153,579.28. Following the sale, the senior vice president owned 8,372 shares of the company's stock, valued at $1,471,127.84. This represents a 9.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 16,888 shares of company stock worth $2,882,135 in the last three months. 8.16% of the stock is owned by insiders.

Institutional Investors Weigh In On Quest Diagnostics

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Pinnacle Bancorp Inc. increased its position 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 period. MTM Investment Management LLC purchased a new position in Quest Diagnostics during the 2nd quarter valued at $29,000. Bruce G. Allen Investments LLC increased its position 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 period. First Horizon Advisors Inc. increased its position 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 period. Finally, Golden State Wealth Management LLC increased its position 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 period. 88.06% of the stock is currently owned by institutional investors.

About Quest Diagnostics

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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