Quest Diagnostics (NYSE:DGX) Reaches New 12-Month High - Still a Buy?

Key Points

• Quest Diagnostics' stock reached a new 52-week high of $187.53, reflecting a significant rise in trading volume and user interest.
• Analysts have mixed ratings on Quest Diagnostics, with one "Strong Buy", seven "Buy", and ten "Hold" ratings, and an average target price of $186.00.
• The company reported quarterly earnings of $2.62 EPS, exceeding expectations and showing a 15.2% increase in year-over-year revenue.

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 $187.20 and last traded at $187.53, with a volume of 18859 shares trading hands. The stock had previously closed at $184.69.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on DGX shares. Robert W. Baird reissued a "neutral" rating and set a $194.00 price target on shares of Quest Diagnostics in a research report on Monday, August 25th. Evercore ISI set a $185.00 price target on Quest Diagnostics in a research report on Wednesday, July 23rd. William Blair reissued an "outperform" rating on shares of Quest Diagnostics in a research report on Wednesday, July 23rd. UBS Group dropped their price target on Quest Diagnostics from $176.00 to $175.00 and set a "neutral" rating on the stock in a research report on Friday, July 18th. Finally, Wall Street Zen lowered Quest Diagnostics from a "buy" rating to a "hold" rating in a research report on Sunday, August 10th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $186.00.

Quest Diagnostics Stock Performance

The firm has a fifty day simple moving average of $177.01 and a 200 day simple moving average of $174.09. The company has a current ratio of 1.09, a quick ratio of 0.99 and a debt-to-equity ratio of 0.71. The stock has a market cap of $20.89 billion, a price-to-earnings ratio of 22.36, a PEG ratio of 2.44 and a beta of 0.54.

Quest Diagnostics (NYSE:DGX - Get Free Report) last posted its quarterly earnings results 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 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%.The company's revenue for the quarter was up 15.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.35 EPS. Quest Diagnostics has set its FY 2025 guidance at 9.630-9.830 EPS. As a group, sell-side analysts expect that Quest Diagnostics Incorporated will post 9.7 earnings per share for the current year.

Quest Diagnostics Announces Dividend

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

Insider Activity at Quest Diagnostics

In related news, SVP Patrick Plewman sold 5,535 shares of the firm's stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $175.00, for a total transaction 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 trade represents a 22.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Karthik Kuppusamy sold 8,269 shares of the firm's stock in a transaction that occurred 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 transaction, the senior vice president owned 10,660 shares of the company's stock, valued at $1,784,484. This trade represents a 43.68% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 24,496 shares of company stock valued at $4,278,787 in the last 90 days. 8.16% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Quest Diagnostics

Hedge funds and other institutional investors have recently bought and sold shares of the business. Pinnacle Bancorp Inc. boosted its stake in Quest Diagnostics by 126.9% in 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 in the last quarter. MTM Investment Management LLC bought a new position in shares of Quest Diagnostics in the second quarter valued at about $29,000. Bruce G. Allen Investments LLC lifted 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 worth $31,000 after buying an additional 67 shares in the last quarter. AlphaQuest LLC grew its holdings in Quest Diagnostics by 18,400.0% during the 2nd quarter. AlphaQuest LLC now owns 185 shares of the medical research company's stock worth $33,000 after acquiring an additional 184 shares during the last quarter. Finally, First Horizon Advisors Inc. increased its position in Quest Diagnostics by 76.6% in the 1st quarter. First Horizon Advisors Inc. now owns 189 shares of the medical research company's stock valued at $32,000 after acquiring an additional 82 shares in the last quarter. 88.06% of the stock is owned by institutional investors and hedge funds.

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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