Quest Diagnostics (NYSE:DGX) Reaches New 1-Year High – Still a Buy?

Quest Diagnostics Incorporated (NYSE:DGX) shares hit a new 52-week high during trading on Friday . The company traded as high as $213.37 and last traded at $213.40, with a volume of 190132 shares traded. The stock had previously closed at $211.10.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on DGX shares. Robert W. Baird set a $219.00 target price on Quest Diagnostics in a report on Wednesday, February 11th. Mizuho increased their price objective on shares of Quest Diagnostics from $210.00 to $235.00 and gave the company an “outperform” rating in a research report on Thursday, February 12th. Wall Street Zen cut shares of Quest Diagnostics from a “buy” rating to a “hold” rating in a research report on Sunday, February 22nd. Truist Financial raised their price target on shares of Quest Diagnostics from $205.00 to $220.00 and gave the company a “hold” rating in a report on Wednesday, February 11th. Finally, Jefferies Financial Group lifted their price target on shares of Quest Diagnostics from $215.00 to $220.00 and gave the stock a “buy” rating in a research note on Tuesday, February 10th. Eight analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat, Quest Diagnostics currently has a consensus rating of “Moderate Buy” and a consensus price target of $210.29.

Quest Diagnostics Trading Up 0.3%

The company has a debt-to-equity ratio of 0.72, a current ratio of 1.04 and a quick ratio of 0.96. The business’s fifty day simple moving average is $188.64 and its 200 day simple moving average is $184.85. The stock has a market cap of $23.56 billion, a price-to-earnings ratio of 24.20, a P/E/G ratio of 2.74 and a beta of 0.66.

Quest Diagnostics (NYSE:DGX) last issued its earnings results on Tuesday, February 10th. The medical research company reported $2.42 earnings per share for the quarter, topping analysts’ consensus estimates of $2.35 by $0.07. Quest Diagnostics had a net margin of 8.99% and a return on equity of 15.57%. The company had revenue of $2.81 billion for the quarter, compared to analysts’ expectations of $2.75 billion. During the same period in the prior year, the company earned $2.23 earnings per share. The firm’s revenue was up 7.1% compared to the same quarter last year. Quest Diagnostics has set its FY 2026 guidance at 9.45-9.650 EPS. On average, research analysts predict that Quest Diagnostics Incorporated will post 9.7 EPS for the current year.

Quest Diagnostics Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, April 20th. Shareholders of record on Monday, April 6th will be issued a $0.86 dividend. This is an increase from Quest Diagnostics’s previous quarterly dividend of $0.80. This represents a $3.44 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Monday, April 6th. Quest Diagnostics’s dividend payout ratio is 36.57%.

Quest Diagnostics declared that its Board of Directors has approved a share buyback plan on Tuesday, February 10th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the medical research company to purchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Quest Diagnostics

In other Quest Diagnostics news, SVP Patrick Plewman sold 958 shares of the firm’s stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $204.83, for a total value of $196,227.14. Following the sale, the senior vice president directly owned 15,838 shares in the company, valued at approximately $3,244,097.54. This trade represents a 5.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Michael E. Prevoznik sold 1,111 shares of the business’s stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $204.83, for a total transaction of $227,566.13. Following the transaction, the senior vice president directly owned 38,371 shares of the company’s stock, valued at approximately $7,859,531.93. This trade represents a 2.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 9,164 shares of company stock worth $1,872,363. 8.16% of the stock is currently owned by company insiders.

Institutional Trading of Quest Diagnostics

Several hedge funds have recently bought and sold shares of DGX. Moneta Group Investment Advisors LLC increased its stake in shares of Quest Diagnostics by 3.7% in the fourth quarter. Moneta Group Investment Advisors LLC now owns 1,387 shares of the medical research company’s stock valued at $241,000 after purchasing an additional 50 shares during the period. Perigon Wealth Management LLC boosted its position in shares of Quest Diagnostics by 4.5% during the third quarter. Perigon Wealth Management LLC now owns 1,275 shares of the medical research company’s stock worth $243,000 after buying an additional 55 shares during the period. HB Wealth Management LLC grew its holdings in Quest Diagnostics by 0.5% in the 4th quarter. HB Wealth Management LLC now owns 11,292 shares of the medical research company’s stock worth $1,960,000 after buying an additional 58 shares in the last quarter. Independent Advisor Alliance increased its position in Quest Diagnostics by 1.4% in the 3rd quarter. Independent Advisor Alliance now owns 4,232 shares of the medical research company’s stock valued at $807,000 after acquiring an additional 59 shares during the period. Finally, True North Advisors LLC raised its stake in Quest Diagnostics by 4.1% during the 3rd quarter. True North Advisors LLC now owns 1,554 shares of the medical research company’s stock valued at $296,000 after acquiring an additional 61 shares in the last quarter. 88.06% of the stock is currently owned by institutional investors.

About Quest Diagnostics

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.