Quest Diagnostics (NYSE:DGX) Stock Price Up 4.3% – Should You Buy?

Shares of Quest Diagnostics Incorporated (NYSE:DGX) rose 4.3% during mid-day trading on Tuesday . The stock traded as high as $246.56 and last traded at $248.0060. Approximately 324,636 shares changed hands during mid-day trading, a decline of 66% from the average session volume of 949,656 shares. The stock had previously closed at $237.89.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on DGX. Robert W. Baird upped their target price on shares of Quest Diagnostics from $236.00 to $255.00 and gave the company a “neutral” rating in a report on Friday, July 24th. Wall Street Zen raised Quest Diagnostics from a “hold” rating to a “buy” rating in a report on Tuesday, July 28th. JPMorgan Chase & Co. boosted their price target on shares of Quest Diagnostics from $220.00 to $250.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 28th. UBS Group increased their target price on Quest Diagnostics from $232.00 to $245.00 and gave the company a “neutral” rating in a research report on Tuesday, September 8th. Finally, Argus set a $260.00 price target on Quest Diagnostics in a research report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Quest Diagnostics has a consensus rating of “Moderate Buy” and an average target price of $236.31.

Quest Diagnostics Price Performance

The company has a market capitalization of $27.24 billion, a PE ratio of 26.20, a P/E/G ratio of 2.15 and a beta of 0.55. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.46 and a current ratio of 1.59. The firm has a fifty day simple moving average of $230.20 and a 200 day simple moving average of $209.60.

Quest Diagnostics (NYSE:DGX) last released its quarterly earnings data on Thursday, July 23rd. The medical research company reported $3.12 earnings per share for the quarter, topping analysts’ consensus estimates of $2.82 by $0.30. Quest Diagnostics had a net margin of 9.18% and a return on equity of 16.01%. The company had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.97 billion. During the same period in the prior year, the firm earned $2.62 earnings per share. The firm’s revenue for the quarter was up 10.2% compared to the same quarter last year. Quest Diagnostics has set its FY 2026 guidance at 11.050-11.250 EPS. Equities analysts anticipate that Quest Diagnostics Incorporated will post 11.15 EPS for the current year.

Quest Diagnostics Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Tuesday, October 6th will be given a $0.86 dividend. This represents a $3.44 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Tuesday, October 6th. Quest Diagnostics’s payout ratio is presently 36.52%.

Insider Buying and Selling at Quest Diagnostics

In other Quest Diagnostics news, SVP Mark Delaney sold 1,600 shares of the stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $235.18, for a total transaction of $376,288.00. Following the completion of the sale, the senior vice president directly owned 10,335 shares of the company’s stock, valued at approximately $2,430,585.30. This represents a 13.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO J. Davis sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $242.72, for a total transaction of $2,427,200.00. Following the sale, the chief executive officer directly owned 122,423 shares of the company’s stock, valued at $29,714,510.56. The trade was a 7.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 34,277 shares of company stock valued at $8,316,493. 0.88% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Quest Diagnostics

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Quest Diagnostics during the 2nd quarter worth approximately $1,965,923,000. Bank of America Corp DE purchased a new position in Quest Diagnostics in the 2nd quarter valued at about $410,151,000. Norges Bank purchased a new position in shares of Quest Diagnostics in the fourth quarter valued at approximately $229,522,000. Legal & General Group Plc purchased a new position in Quest Diagnostics in the 2nd quarter valued at $151,986,000. Finally, Bank of New York Mellon Corp acquired a new position in Quest Diagnostics during the second quarter worth about $133,388,000. 88.06% of the stock is owned by hedge funds and other institutional investors.

About Quest Diagnostics

Quest Diagnostics Incorporated (NYSE: DGX) is a provider of diagnostic information services. The company performs laboratory testing used to help diagnose, monitor and manage diseases and other health conditions, serving physicians, hospitals, health plans, employers, government agencies and individual consumers.

Its services include routine blood and urine testing, advanced and esoteric diagnostics, molecular and genetic testing, anatomic pathology, cancer testing, drug screening and wellness-related assessments.