Quest Diagnostics (NYSE:DGX) Reaches New 12-Month High - Should You Buy?

Key Points

• Quest Diagnostics shares hit a new 52-week high at $213.76, reflecting strong recent momentum in the stock. The move came with trading volume of 234,682 shares.
• Analysts remain split on the name, but the overall view is still Moderate Buy with a consensus price target of $216.58. Recent target increases from UBS and Truist suggest some optimism, even as a few firms trimmed ratings.
• The company reported better-than-expected quarterly results, with EPS of $2.50 versus $2.37 expected and revenue of $2.90 billion, up 9.2% year over year. Quest also reaffirmed its FY 2026 EPS guidance and announced a quarterly dividend of $0.86 per share.

Quest Diagnostics Incorporated (NYSE:DGX - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The stock traded as high as $213.76 and last traded at $213.40, with a volume of 234682 shares trading hands. The stock had previously closed at $212.64.

Analyst Ratings Changes

Several analysts have commented on the stock. UBS Group raised their target price on shares of Quest Diagnostics from $210.00 to $220.00 and gave the stock a "neutral" rating in a report on Wednesday, April 22nd. Wall Street Zen downgraded shares of Quest Diagnostics from a "buy" rating to a "hold" rating in a research report on Sunday. Evercore set a $225.00 price objective on shares of Quest Diagnostics in a research report on Tuesday, April 21st. Truist Financial increased their target price on Quest Diagnostics from $220.00 to $225.00 and gave the stock a "hold" rating in a report on Wednesday, April 22nd. Finally, Weiss Ratings downgraded Quest Diagnostics from a "buy (b+)" rating to a "buy (b)" rating in a research note on Wednesday, June 24th. Seven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $216.58.

Quest Diagnostics Stock Performance

The stock's 50-day moving average price is $196.24 and its 200 day moving average price is $193.10. The firm has a market cap of $23.67 billion, a P/E ratio of 23.63, a price-to-earnings-growth ratio of 2.50 and a beta of 0.59. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.18 and a quick ratio of 1.08.

Quest Diagnostics (NYSE:DGX - Get Free Report) last released its earnings results on Tuesday, April 21st. The medical research company reported $2.50 earnings per share for the quarter, beating analysts' consensus estimates of $2.37 by $0.13. Quest Diagnostics had a net margin of 9.07% and a return on equity of 15.60%. The business had revenue of $2.90 billion during the quarter, compared to the consensus estimate of $2.83 billion. During the same quarter last year, the firm earned $1.94 earnings per share. The firm's revenue for the quarter was up 9.2% compared to the same quarter last year. Quest Diagnostics has set its FY 2026 guidance at 10.630-10.830 EPS. As a group, equities analysts predict that Quest Diagnostics Incorporated will post 10.72 EPS for the current year.

Quest Diagnostics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Wednesday, July 8th will be issued a dividend of $0.86 per share. This represents a $3.44 annualized dividend and a yield of 1.6%. The ex-dividend date is Wednesday, July 8th. Quest Diagnostics's dividend payout ratio is presently 38.01%.

Insider Buying and Selling

In other news, CEO J. E. Davis sold 10,000 shares of Quest Diagnostics stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $194.14, for a total value of $1,941,400.00. Following the completion of the transaction, the chief executive officer owned 132,423 shares of the company's stock, valued at $25,708,601.22. This trade represents a 7.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Karthik Kuppusamy sold 8,147 shares of the business's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $200.00, for a total transaction of $1,629,400.00. Following the transaction, the senior vice president owned 13,510 shares in the company, valued at $2,702,000. This represents a 37.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.88% of the stock is owned by company insiders.

Institutional Trading of Quest Diagnostics

A number of hedge funds have recently made changes to their positions in the business. Key Financial Inc raised its stake in Quest Diagnostics by 1,728.6% in the 1st quarter. Key Financial Inc now owns 128 shares of the medical research company's stock valued at $25,000 after acquiring an additional 121 shares during the period. Quattro Advisors LLC bought a new position in Quest Diagnostics during the fourth quarter worth $25,000. JFS Wealth Advisors LLC increased its holdings in shares of Quest Diagnostics by 114.3% in the fourth quarter. JFS Wealth Advisors LLC now owns 150 shares of the medical research company's stock valued at $26,000 after purchasing an additional 80 shares during the last quarter. Sittner & Nelson LLC acquired a new position in shares of Quest Diagnostics in the fourth quarter valued at $29,000. Finally, DV Equities LLC bought a new position in shares of Quest Diagnostics in the fourth quarter valued at about $27,000. 88.06% of the stock is owned by institutional investors and hedge funds.

Quest Diagnostics Company Profile

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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