Quest Diagnostics (NYSE:DGX) Shares Gap Up After Better-Than-Expected Earnings

by · The Markets Daily

Quest Diagnostics Incorporated (NYSE:DGX – Get Free Report)’s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $147.37, but opened at $151.33. Quest Diagnostics shares last traded at $155.20, with a volume of 257,710 shares traded.

The medical research company reported $2.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.26 by $0.04. Quest Diagnostics had a return on equity of 15.35% and a net margin of 8.99%. The firm had revenue of $2.49 billion during the quarter, compared to analysts’ expectations of $2.43 billion. During the same quarter in the prior year, the business posted $2.22 earnings per share. Quest Diagnostics’s revenue was up 8.5% compared to the same quarter last year.

Quest Diagnostics Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, October 21st. Stockholders of record on Friday, October 4th were given a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.91%. The ex-dividend date of this dividend was Friday, October 4th. Quest Diagnostics’s dividend payout ratio is currently 40.38%.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on DGX. Evercore ISI began coverage on Quest Diagnostics in a research report on Wednesday, August 28th. They issued an “in-line” rating and a $165.00 price target for the company. Barclays raised their price target on Quest Diagnostics from $154.00 to $168.00 and gave the company an “equal weight” rating in a research report on Wednesday. Truist Financial increased their price objective on Quest Diagnostics from $158.00 to $165.00 and gave the company a “hold” rating in a research note on Monday, October 7th. Piper Sandler increased their price objective on Quest Diagnostics from $145.00 to $150.00 and gave the company a “neutral” rating in a research note on Monday, July 29th. Finally, UBS Group increased their price objective on Quest Diagnostics from $165.00 to $166.00 and gave the company a “neutral” rating in a research note on Wednesday. Nine investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $161.75.

Read Our Latest Stock Analysis on Quest Diagnostics

Insiders Place Their Bets

In other Quest Diagnostics news, SVP Karthik Kuppusamy sold 1,990 shares of the firm’s stock in a transaction dated Wednesday, August 28th. The stock was sold at an average price of $153.26, for a total value of $304,987.40. Following the sale, the senior vice president now directly owns 11,459 shares of the company’s stock, valued at approximately $1,756,206.34. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.79% of the stock is owned by corporate insiders.

Institutional Trading of Quest Diagnostics

Hedge funds have recently added to or reduced their stakes in the business. Rothschild Investment LLC acquired a new position in shares of Quest Diagnostics in the 2nd quarter valued at about $26,000. Innealta Capital LLC acquired a new position in shares of Quest Diagnostics in the 2nd quarter valued at about $31,000. Larson Financial Group LLC lifted its stake in shares of Quest Diagnostics by 77.5% in the 2nd quarter. Larson Financial Group LLC now owns 229 shares of the medical research company’s stock valued at $31,000 after purchasing an additional 100 shares in the last quarter. Riverview Trust Co acquired a new position in shares of Quest Diagnostics in the 1st quarter valued at about $33,000. Finally, TruNorth Capital Management LLC acquired a new position in shares of Quest Diagnostics in the 2nd quarter valued at about $33,000. 88.06% of the stock is owned by institutional investors and hedge funds.

Quest Diagnostics Stock Down 0.2 %

The firm has a market capitalization of $17.45 billion, a price-to-earnings ratio of 21.15, a price-to-earnings-growth ratio of 2.45 and a beta of 0.89. The company has a current ratio of 1.00, a quick ratio of 0.91 and a debt-to-equity ratio of 0.57. The firm has a 50 day moving average price of $152.88 and a two-hundred day moving average price of $144.48.

Quest Diagnostics Company Profile

(Get Free Report)

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.

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