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

Quest Diagnostics Incorporated (NYSE:DGX) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. 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.

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

Quest Diagnostics Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, April 22nd. Stockholders of record on Monday, April 8th were issued a $0.75 dividend. The ex-dividend date was Friday, April 5th. This is an increase from Quest Diagnostics’s previous quarterly dividend of $0.71. This represents a $3.00 dividend on an annualized basis and a dividend yield of 2.18%. Quest Diagnostics’s dividend payout ratio (DPR) is currently 37.92%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. StockNews.com raised Quest Diagnostics from a “hold” rating to a “buy” rating in a research report on Thursday. UBS Group boosted 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. Mizuho raised their target price on shares of Quest Diagnostics from $150.00 to $155.00 and gave the company a “buy” rating in a research note on Wednesday. TheStreet downgraded Quest Diagnostics from a “b-” rating to a “c” rating in a research report on Monday, February 5th. Finally, SVB Leerink started coverage on Quest Diagnostics in a research report on Monday, February 26th. They issued a “market perform” rating and a $135.00 price objective for the company. Nine equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $146.25.

Insider Activity

In other news, Director Vicky B. Gregg sold 2,500 shares of the firm’s stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $126.64, for a total value of $316,600.00. Following the completion of the transaction, the director now directly owns 16,329 shares in the company, valued at $2,067,904.56. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In other Quest Diagnostics news, Director Vicky B. Gregg sold 2,500 shares of the firm’s stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $126.64, for a total transaction of $316,600.00. Following the completion of the transaction, 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 legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Michael E. Prevoznik sold 5,611 shares of the company’s stock in a transaction on Thursday, February 29th. The shares were sold at an average price of $125.88, for a total transaction of $706,312.68. Following the completion of the sale, the senior vice president now directly owns 38,478 shares in the company, valued at $4,843,610.64. The disclosure for this sale can be found here. Over the last three months, insiders have sold 15,150 shares of company stock valued at $1,913,202. Company insiders own 0.79% of the company’s stock.

Hedge Funds Weigh In On Quest Diagnostics

Institutional investors have recently modified their holdings of the stock. V Square Quantitative Management LLC grew its holdings in Quest Diagnostics by 17.2% during the first quarter. V Square Quantitative Management LLC now owns 3,114 shares of the medical research company’s stock worth $415,000 after acquiring an additional 456 shares during the period. Simplicity Wealth LLC acquired a new stake in shares of Quest Diagnostics during the 1st quarter worth approximately $243,000. Silver Lake Advisory LLC purchased a new position in shares of Quest Diagnostics during the 1st quarter valued at approximately $269,000. Amalgamated Bank lifted its stake in shares of Quest Diagnostics by 2.0% in the 1st quarter. Amalgamated Bank now owns 28,842 shares of the medical research company’s stock valued at $3,839,000 after purchasing an additional 552 shares during the period. Finally, Nations Financial Group Inc. IA ADV lifted its stake in shares of Quest Diagnostics by 18.2% in the 1st quarter. Nations Financial Group Inc. IA ADV now owns 3,364 shares of the medical research company’s stock valued at $448,000 after purchasing an additional 517 shares during the period. Hedge funds and other institutional investors own 88.06% of the company’s stock.

Quest Diagnostics Trading Up 0.6 %

The company has a quick ratio of 1.20, a current ratio of 1.31 and a debt-to-equity ratio of 0.70. The company’s 50-day moving average is $128.69 and its 200 day moving average is $131.08. The company has a market cap 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.

About Quest Diagnostics

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.