Quest Diagnostics (NYSE:DGX) Hits New 1-Year High - What's Next?

Key Points

• Quest Diagnostics' stock reached a new 52-week high of $189.42 during trading, reflecting strong investor interest and a market capitalization of $21.12 billion.
• Analysts have mixed opinions, with target prices ranging from $175.00 to $194.00, and an average rating of Moderate Buy on the stock.
• The company declared a quarterly dividend of $0.80, translating to an annualized yield of 1.7%, highlighting its commitment to returning value to shareholders.

Shares of Quest Diagnostics Incorporated (NYSE:DGX - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $189.42 and last traded at $189.39, with a volume of 186275 shares changing hands. The stock had previously closed at $188.99.

Analysts Set New Price Targets

DGX has been the topic of several recent research reports. UBS Group lowered their target price on shares of Quest Diagnostics from $176.00 to $175.00 and set a "neutral" rating on the stock in a report on Friday, July 18th. William Blair reissued an "outperform" rating on shares of Quest Diagnostics in a report on Wednesday, July 23rd. Evercore ISI set a $185.00 price target on shares of Quest Diagnostics in a research report on Wednesday, July 23rd. Baird R W downgraded shares of Quest Diagnostics from a "strong-buy" rating to a "hold" rating in a report on Monday, August 25th. Finally, Robert W. Baird reiterated a "neutral" rating and set a $194.00 target price on shares of Quest Diagnostics in a report on Monday, August 25th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Quest Diagnostics has an average rating of "Moderate Buy" and a consensus price target of $186.00.

Quest Diagnostics Price Performance

The company has a quick ratio of 0.99, a current ratio of 1.09 and a debt-to-equity ratio of 0.71. The stock has a fifty day moving average of $178.61 and a 200-day moving average of $174.60. The stock has a market capitalization of $21.12 billion, a price-to-earnings ratio of 22.61, a P/E/G ratio of 2.51 and a beta of 0.54.

Quest Diagnostics (NYSE:DGX - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The medical research company reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.57 by $0.05. The firm had revenue of $2.76 billion during the quarter, compared to analysts' expectations of $2.73 billion. Quest Diagnostics had a return on equity of 15.24% and a net margin of 9.01%.Quest Diagnostics's revenue was up 15.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.35 earnings per share. Quest Diagnostics has set its FY 2025 guidance at 9.630-9.830 EPS. On average, equities research analysts predict that Quest Diagnostics Incorporated will post 9.7 EPS for the current fiscal year.

Quest Diagnostics Dividend Announcement

The company 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. This represents a $3.20 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, October 3rd. Quest Diagnostics's payout ratio is 38.32%.

Insiders Place Their Bets

In other news, SVP Karthik Kuppusamy sold 8,269 shares of the company's stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $167.40, for a total value of $1,384,230.60. Following the completion of the sale, the senior vice president owned 10,660 shares in the company, valued at $1,784,484. This represents a 43.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, SVP Michael E. Prevoznik sold 28,288 shares of the company's stock in a transaction dated 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 completion of the transaction, the senior vice president directly owned 38,117 shares in the company, valued at approximately $7,132,453.04. The trade was a 42.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 52,959 shares of company stock worth $9,604,766. 8.16% of the stock is owned by company insiders.

Institutional Trading of Quest Diagnostics

A number of hedge funds and other institutional investors have recently modified their holdings of DGX. Pinnacle Bancorp Inc. lifted its stake in Quest Diagnostics by 126.9% during the second quarter. Pinnacle Bancorp Inc. now owns 152 shares of the medical research company's stock worth $27,000 after purchasing an additional 85 shares during the last quarter. MTM Investment Management LLC purchased a new position in shares of Quest Diagnostics during the 2nd quarter valued at $29,000. Bruce G. Allen Investments LLC grew its position in Quest Diagnostics by 57.8% in the first quarter. Bruce G. Allen Investments LLC now owns 183 shares of the medical research company's stock worth $31,000 after acquiring an additional 67 shares in the last quarter. First Horizon Advisors Inc. lifted its stake in Quest Diagnostics by 76.6% in the first quarter. First Horizon Advisors Inc. now owns 189 shares of the medical research company's stock worth $32,000 after purchasing an additional 82 shares during the last quarter. Finally, Golden State Wealth Management LLC raised its stake in shares of Quest Diagnostics by 157.3% during the first quarter. Golden State Wealth Management LLC now owns 193 shares of the medical research company's stock valued at $33,000 after acquiring an additional 118 shares during the last quarter. Institutional investors and hedge funds 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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