Quest Diagnostics (NYSE:DGX) to Repurchase $1.00 billion in Outstanding Stock

Quest Diagnostics (NYSE:DGX) declared that its board has authorized a stock repurchase program on Tuesday, February 10th, RTT News reports. The company plans to buyback $1.00 billion in shares. This buyback authorization authorizes the medical research company to reacquire up to 4.7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Quest Diagnostics Trading Up 7.2%

NYSE:DGX traded up $13.71 during trading hours on Tuesday, reaching $204.96. 2,295,792 shares of the company were exchanged, compared to its average volume of 1,098,539. The firm has a market cap of $22.80 billion, a price-to-earnings ratio of 24.06, a PEG ratio of 2.42 and a beta of 0.66. The stock has a 50 day simple moving average of $181.77 and a 200 day simple moving average of $181.77. Quest Diagnostics has a 52-week low of $157.20 and a 52-week high of $207.05. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.13 and a quick ratio of 1.04.

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, topping analysts’ consensus estimates of $2.35 by $0.07. The business had revenue of $2.81 billion during the quarter, compared to the consensus estimate of $2.75 billion. Quest Diagnostics had a return on equity of 15.47% and a net margin of 8.91%.The business’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.23 EPS. Quest Diagnostics has set its FY 2026 guidance at 9.45-9.650 EPS. As a group, analysts predict that Quest Diagnostics will post 9.7 EPS for the current year.

Quest Diagnostics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 20th. Stockholders of record on Monday, April 6th will be issued a $0.86 dividend. This is a positive change from Quest Diagnostics’s previous quarterly dividend of $0.80. The ex-dividend date is Monday, April 6th. This represents a $3.44 dividend on an annualized basis and a dividend yield of 1.7%. Quest Diagnostics’s dividend payout ratio (DPR) is 37.56%.

Wall Street Analyst Weigh In

DGX has been the topic of several recent research reports. Truist Financial upped their price objective on Quest Diagnostics from $195.00 to $205.00 and gave the company a “hold” rating in a research report on Wednesday, October 22nd. Weiss Ratings restated a “buy (b-)” rating on shares of Quest Diagnostics in a report on Monday, December 29th. Wall Street Zen cut shares of Quest Diagnostics from a “buy” rating to a “hold” rating in a research note on Sunday, January 25th. Jefferies Financial Group reiterated a “buy” rating and set a $220.00 price target on shares of Quest Diagnostics in a report on Tuesday. Finally, UBS Group upped their price objective on shares of Quest Diagnostics from $180.00 to $190.00 and gave the company a “neutral” rating in a research note on Friday, October 17th. Eight analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, Quest Diagnostics presently has an average rating of “Moderate Buy” and an average price target of $201.00.

Insider Activity

In other news, CEO J. E. Davis sold 55,093 shares of the business’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $192.22, for a total transaction of $10,589,976.46. Following the completion of the sale, the chief executive officer owned 120,480 shares in the company, valued at approximately $23,158,665.60. The trade was a 31.38% 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, SVP Mark E. Delaney sold 7,946 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $187.35, for a total transaction of $1,488,683.10. Following the completion of the transaction, the senior vice president owned 7,530 shares in the company, valued at $1,410,745.50. The trade was a 51.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 64,289 shares of company stock valued at $12,318,360 in the last three months. Corporate insiders own 8.16% of the company’s stock.

Quest Diagnostics News Roundup

Here are the key news stories impacting Quest Diagnostics this week:

• Positive Sentiment: Q4 results beat consensus: adjusted EPS of $2.42 topped estimates and revenue of $2.81B was up 7.1% year-over-year, driven by stronger test volumes and price/mix. This is the core catalyst cited by multiple outlets. Yahoo Finance: Q4 Highlights
• Positive Sentiment: Shareholder-return boost: board raised the quarterly dividend 7.5% to $0.86 and authorized an additional $1.0B in share repurchases — a clear positive for income and buyback-driven EPS support. PR Newswire: Dividend & Repurchase
• Positive Sentiment: Analyst/market reaction: shares hit a 52‑week high and Citigroup raised its price target to $215 (neutral rating), reflecting positive reception to the quarter and capital return actions. MSN: 52-week high Benzinga: Citi PT raise
• Positive Sentiment: Longer-term growth potential: CEO comments on developing blood-based Alzheimer’s diagnostics highlight a potential new growth avenue if tests gain clinical adoption and reimbursement. YouTube: CEO on Alzheimer’s testing
• Neutral Sentiment: Investor materials and call: company released the earnings press release, slide deck and full transcript; management reiterated drivers (volume growth, pricing, cost control) that investors will parse for sustainability. Press Release / Slide Deck
• Negative Sentiment: Guidance is mixed: FY2026 reported diluted EPS guidance of $9.45–$9.65 (and adjusted EPS ranges detailed in the release) may sit below some street estimates, creating a risk that analysts trim expectations despite the quarter. PR Newswire: Q4 Results & Guidance

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.