Quest Diagnostics (NYSE:DGX) Shares Gap Up After Strong Earnings

Quest Diagnostics Incorporated (NYSE:DGX) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $130.09, but opened at $135.00. Quest Diagnostics shares last traded at $135.14, with a volume of 289,912 shares changing hands.

The medical research company reported $2.04 EPS for the quarter, topping the consensus estimate of $1.86 by $0.18. The company had revenue of $2.37 billion for the quarter, compared to analyst estimates of $2.29 billion. Quest Diagnostics had a net margin of 9.23% and a return on equity of 15.79%. The business’s revenue was up 1.7% on a year-over-year basis. During the same period in the previous year, the firm earned $2.04 EPS.

Quest Diagnostics Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, April 22nd. Stockholders of record on Monday, April 8th were paid a dividend of $0.75 per share. This is a positive change from Quest Diagnostics’s previous quarterly dividend of $0.71. The ex-dividend date was Friday, April 5th. This represents a $3.00 annualized dividend and a dividend yield of 2.18%. Quest Diagnostics’s payout ratio is 37.92%.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on DGX shares. Truist Financial lifted their price objective on Quest Diagnostics from $145.00 to $150.00 and gave the stock a “hold” rating in a report on Wednesday. Citigroup boosted their price objective on shares of Quest Diagnostics from $135.00 to $145.00 and gave the stock a “neutral” rating in a research report on Wednesday. Barclays initiated coverage on shares of Quest Diagnostics in a report on Wednesday, January 3rd. They set an “equal weight” rating and a $145.00 target price for the company. Mizuho upped their price target on shares of Quest Diagnostics from $150.00 to $155.00 and gave the company a “buy” rating in a report on Wednesday. Finally, UBS Group raised their price objective on shares of Quest Diagnostics from $139.00 to $146.00 and gave the stock a “neutral” rating in a research note on Wednesday. Nine equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $146.25.

Insider Activity at Quest Diagnostics

In other Quest Diagnostics news, Director Vicky B. Gregg sold 2,500 shares of Quest Diagnostics stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $126.64, for a total value of $316,600.00. Following the completion of the sale, the director now directly owns 16,329 shares of the company’s stock, valued at approximately $2,067,904.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Quest Diagnostics news, Director Vicky B. Gregg sold 2,500 shares of the stock in a transaction on Friday, February 23rd. The stock was sold at an average price of $126.64, for a total transaction of $316,600.00. Following the transaction, the director now owns 16,329 shares of the company’s stock, valued at approximately $2,067,904.56. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Catherine T. Doherty sold 821 shares of Quest Diagnostics stock in a transaction on Thursday, February 22nd. The shares were sold at an average price of $126.14, for a total value of $103,560.94. Following the completion of the sale, the executive vice president now directly owns 70,800 shares of the company’s stock, valued at approximately $8,930,712. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 15,150 shares of company stock valued at $1,913,202. Company insiders own 0.79% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in DGX. NBC Securities Inc. purchased a new stake in shares of Quest Diagnostics during the 3rd quarter worth about $25,000. Altshuler Shaham Ltd acquired a new position in Quest Diagnostics during the 4th quarter worth approximately $26,000. VisionPoint Advisory Group LLC boosted its holdings in Quest Diagnostics by 100.0% in the 3rd quarter. VisionPoint Advisory Group LLC now owns 218 shares of the medical research company’s stock worth $27,000 after acquiring an additional 109 shares during the period. BKM Wealth Management LLC purchased a new stake in shares of Quest Diagnostics during the fourth quarter valued at approximately $29,000. Finally, Spartan Planning & Wealth Management acquired a new stake in Quest Diagnostics during the 4th quarter valued at $31,000. 88.06% of the stock is owned by hedge funds and other institutional investors.

Quest Diagnostics Stock Performance

The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.20 and a current ratio of 1.31. The firm has a market capitalization of $15.28 billion, a price-to-earnings ratio of 18.36, a price-to-earnings-growth ratio of 2.81 and a beta of 0.91. The stock’s fifty day moving average is $128.69 and its two-hundred day moving average is $131.08.

Quest Diagnostics Company Profile

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services.