Wall Street Zen Downgrades Quest Diagnostics (NYSE:DGX) to Hold

Key Points

• Wall Street Zen downgraded Quest Diagnostics from Buy to Hold, adding to a mixed analyst picture on the stock.
• The company’s latest quarterly results beat expectations, with EPS of $2.50 versus $2.37 expected and revenue of $2.90 billion versus $2.83 billion expected; revenue rose 9.2% year over year.
• Quest Diagnostics also authorized a $1 billion share buyback, while recent insider sales and heavy institutional ownership suggest active investor and management interest in the stock.

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 Saturday.

A number of other equities analysts have also recently weighed in on the stock. Evercore set a $225.00 price objective on shares of Quest Diagnostics in a research report on Tuesday, April 21st. Weiss Ratings lowered shares of Quest Diagnostics from a "buy (b+)" rating to a "buy (b)" rating in a report on Tuesday, May 19th. Mizuho increased their target price on shares of Quest Diagnostics from $210.00 to $235.00 and gave the stock an "outperform" rating in a report on Thursday, February 12th. UBS Group increased 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. Finally, Barclays increased their target price on shares of Quest Diagnostics from $225.00 to $230.00 and gave the stock an "overweight" rating in a report on Wednesday, April 22nd. Seven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $216.58.

Quest Diagnostics Stock Performance

NYSE:DGX opened at $194.78 on Friday. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.08 and a current ratio of 1.18. The stock has a market capitalization of $21.56 billion, a P/E ratio of 21.52, a PEG ratio of 2.34 and a beta of 0.60. The company has a 50 day moving average price of $194.46 and a 200 day moving average price of $191.04. Quest Diagnostics has a fifty-two week low of $164.65 and a fifty-two week high of $213.50.

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

Quest Diagnostics announced that its Board of Directors has authorized a share buyback plan on Tuesday, February 10th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the medical research company to repurchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Insider Activity

In other news, SVP Patrick Plewman sold 2,855 shares of the firm's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $206.21, for a total value of $588,729.55. Following the sale, the senior vice president directly owned 15,198 shares in the company, valued at approximately $3,133,979.58. This trade represents a 15.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Catherine T. Doherty sold 5,558 shares of the firm's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $206.21, for a total transaction of $1,146,115.18. Following the completion of the sale, the executive vice president owned 67,122 shares in the company, valued at $13,841,227.62. The trade was a 7.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 14,919 shares of company stock valued at $3,072,899 over the last quarter. Company insiders own 0.88% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Key Financial Inc grew its position in shares of 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 buying an additional 121 shares during the last quarter. Quattro Advisors LLC purchased a new position in shares of Quest Diagnostics in the 4th quarter valued at $25,000. JFS Wealth Advisors LLC grew its position in shares of Quest Diagnostics by 114.3% in the 4th quarter. JFS Wealth Advisors LLC now owns 150 shares of the medical research company's stock valued at $26,000 after buying an additional 80 shares during the last quarter. Sittner & Nelson LLC purchased a new position in shares of Quest Diagnostics in the 4th quarter valued at $29,000. Finally, DV Equities LLC purchased a new position in shares of Quest Diagnostics in the 4th quarter valued at $27,000. 88.06% of the stock is owned by hedge funds and other institutional investors.

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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