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

Quest Diagnostics (NYSE:DGX) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Sunday.

Several other research firms have also commented on DGX. UBS Group upped their price target on shares of Quest Diagnostics from $190.00 to $210.00 and gave the company a “neutral” rating in a report on Wednesday, February 11th. Mizuho lifted their price objective on Quest Diagnostics from $210.00 to $235.00 and gave the company an “outperform” rating in a research note on Thursday, February 12th. Robert W. Baird set a $219.00 price objective on Quest Diagnostics in a report on Wednesday, February 11th. Citigroup upped their target price on Quest Diagnostics from $190.00 to $215.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 10th. Finally, Barclays raised their target price on Quest Diagnostics from $210.00 to $225.00 and gave the stock an “overweight” rating in a report on Wednesday, February 11th. Eight investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $210.29.

Quest Diagnostics Stock Performance

DGX opened at $199.06 on Friday. The company has a current ratio of 1.04, a quick ratio of 0.96 and a debt-to-equity ratio of 0.72. Quest Diagnostics has a 12-month low of $157.20 and a 12-month high of $213.50. The firm has a 50 day moving average of $194.80 and a two-hundred day moving average of $186.62. The firm has a market capitalization of $21.87 billion, a PE ratio of 22.75, a P/E/G ratio of 2.58 and a beta of 0.65.

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

Quest Diagnostics announced that its board has approved a share buyback plan on Tuesday, February 10th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the medical research company to purchase up to 4.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other Quest Diagnostics news, SVP Karthik Kuppusamy sold 2,628 shares of the firm’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $204.86, for a total value of $538,372.08. Following the sale, the senior vice president directly owned 13,441 shares of the company’s stock, valued at approximately $2,753,523.26. This trade represents a 16.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Catherine T. Doherty sold 5,558 shares of the business’s stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $206.21, for a total value of $1,146,115.18. Following the completion of the sale, the executive vice president owned 67,122 shares of the company’s stock, valued at $13,841,227.62. This trade represents a 7.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 24,083 shares of company stock worth $4,945,262 in the last 90 days. 8.16% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quattro Advisors LLC acquired a new position in Quest Diagnostics during the fourth quarter worth $25,000. JFS Wealth Advisors LLC grew its position 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 period. Harbor Investment Advisory LLC grew its position in shares of Quest Diagnostics by 113.7% in the fourth quarter. Harbor Investment Advisory LLC now owns 156 shares of the medical research company’s stock valued at $27,000 after purchasing an additional 83 shares during the period. DV Equities LLC purchased a new stake in shares of Quest Diagnostics during the fourth quarter worth about $27,000. Finally, MTM Investment Management LLC purchased a new stake in shares of Quest Diagnostics during the second quarter worth about $29,000. Hedge funds and other institutional investors own 88.06% of the company’s stock.

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.