Investors Buy Large Volume of Put Options on Quest Diagnostics (NYSE:DGX)

Key Points

• Stock traders have made a significant move in Quest Diagnostics by purchasing 2,401 put options, which is a 190% increase over the typical daily volume of 829 put options.
• Insider transactions show that senior vice presidents have sold a combined 24,496 shares worth approximately $4.28 million over the last three months, indicating a decrease in their ownership of the company.
• Quest Diagnostics recently reported strong quarterly earnings, with an EPS of $2.62, exceeding expectations and showing a 15.2% revenue increase compared to the same quarter last year.

Quest Diagnostics Incorporated (NYSE:DGX - Get Free Report) was the recipient of unusually large options trading activity on Friday. Traders bought 2,401 put options on the company. This represents an increase of 190% compared to the average volume of 829 put options.

Wall Street Analyst Weigh In

Several analysts have commented 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. UBS Group decreased their price target 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. Truist Financial increased their price target on shares of Quest Diagnostics from $190.00 to $192.00 and gave the company a "hold" rating in a research report on Wednesday, July 23rd. Deutsche Bank Aktiengesellschaft increased their price target on shares of Quest Diagnostics from $160.00 to $178.00 and gave the company a "hold" rating in a research report on Wednesday, July 23rd. Finally, William Blair reaffirmed an "outperform" rating on shares of Quest Diagnostics in a research report on Wednesday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $186.00.

Quest Diagnostics Stock Performance

NYSE:DGX traded up $0.36 during midday trading on Friday, hitting $183.69. The company's stock had a trading volume of 1,435,553 shares, compared to its average volume of 658,188. Quest Diagnostics has a fifty-two week low of $146.17 and a fifty-two week high of $185.62. The firm's 50 day moving average is $176.68 and its 200-day moving average is $174.03. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.09 and a quick ratio of 0.99. The firm has a market cap of $20.54 billion, a P/E ratio of 22.00, a P/E/G ratio of 2.44 and a beta of 0.54.

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

Quest Diagnostics Dividend Announcement

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

Insider Transactions at Quest Diagnostics

In other news, SVP Patrick Plewman sold 5,535 shares of the company's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $175.00, for a total value of $968,625.00. Following the transaction, the senior vice president directly owned 19,219 shares in the company, valued at approximately $3,363,325. This represents a 22.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Karthik Kuppusamy sold 8,269 shares of the company's stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $167.40, for a total transaction of $1,384,230.60. Following the completion of the sale, the senior vice president directly owned 10,660 shares of the company's stock, valued at approximately $1,784,484. This trade represents a 43.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 24,496 shares of company stock worth $4,278,787. Company insiders own 8.16% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DGX. Pinnacle Bancorp Inc. raised its holdings in shares of Quest Diagnostics by 126.9% during the 2nd quarter. Pinnacle Bancorp Inc. now owns 152 shares of the medical research company's stock worth $27,000 after acquiring an additional 85 shares during the period. MTM Investment Management LLC purchased a new position in shares of Quest Diagnostics during the 2nd quarter worth $29,000. Bruce G. Allen Investments LLC raised its holdings in shares of 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 acquiring an additional 67 shares during the period. AlphaQuest LLC raised its holdings in shares of 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 period. Finally, First Horizon Advisors Inc. raised its holdings in shares of Quest Diagnostics by 76.6% during the 1st quarter. First Horizon Advisors Inc. now owns 189 shares of the medical research company's stock worth $32,000 after acquiring an additional 82 shares during the period. Hedge funds and other institutional investors 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.