Zacks Investment Research cut shares of Quest Diagnostics Incorporated (NYSE:DGX) from a buy rating to a hold rating in a report issued on Friday morning.
According to Zacks, “Quest Diagnostics’ second-quarter earnings exceeded the Zacks Consensus Estimate, while revenues lagged the same. On a positive note, it has witnessed significant growth through infectious disease testing, prescription drug monitoring and wellness business. It is currently refocusing on core diagnostic information services business and disciplined capital deployment. Finally, the raised 2017 guidance indicates about this bullish trend to continue ahead. In addition, alliance with hospitals and integrated delivery networks are the other growth drivers. Particularly, the company is positive about its acquisition of PeaceHealth in the Pacific Northwest which is expected to bolster growth in the rest 2017. However, we are concerned about tough organic volume scenario. Tough competitive landscape and reimbursement headwinds are other concerns. Notably, over the last three months, Quest Diagnostics has been trading below the broader industry.”
A number of other research firms have also recently commented on DGX. BidaskClub upgraded shares of Quest Diagnostics from a buy rating to a strong-buy rating in a report on Thursday, June 29th. UBS AG increased their price target on shares of Quest Diagnostics from $115.00 to $123.00 and gave the company a buy rating in a report on Thursday, July 6th. Mizuho increased their price target on shares of Quest Diagnostics from $115.00 to $122.00 and gave the company a buy rating in a report on Monday, June 5th. ValuEngine upgraded shares of Quest Diagnostics from a hold rating to a buy rating in a report on Friday, June 2nd. Finally, Barclays PLC reiterated a hold rating and set a $110.00 price target on shares of Quest Diagnostics in a report on Wednesday, July 19th. Nine equities research analysts have rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of Buy and an average target price of $110.84.
Shares of Quest Diagnostics (DGX) traded up 0.48% during trading on Friday, hitting $109.51. The stock had a trading volume of 617,305 shares. The firm has a market cap of $14.94 billion, a PE ratio of 22.07 and a beta of 0.70. Quest Diagnostics has a 52-week low of $79.12 and a 52-week high of $112.97. The stock has a 50 day moving average of $109.16 and a 200 day moving average of $102.05.
Quest Diagnostics (NYSE:DGX) last posted its quarterly earnings results on Tuesday, July 25th. The medical research company reported $1.55 EPS for the quarter, beating the Zacks’ consensus estimate of $1.42 by $0.13. Quest Diagnostics had a net margin of 9.28% and a return on equity of 15.66%. The firm had revenue of $1.94 billion for the quarter, compared to analysts’ expectations of $1.94 billion. During the same quarter in the prior year, the company posted $1.34 earnings per share. The business’s revenue for the quarter was up 1.9% on a year-over-year basis. On average, equities analysts anticipate that Quest Diagnostics will post $5.67 EPS for the current year.
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The business also recently announced a quarterly dividend, which was paid on Monday, July 24th. Investors of record on Monday, July 10th were issued a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 1.64%. The ex-dividend date of this dividend was Thursday, July 6th. Quest Diagnostics’s dividend payout ratio is currently 36.29%.
In other news, SVP Catherine T. Doherty sold 59,762 shares of Quest Diagnostics stock in a transaction on Monday, June 19th. The shares were sold at an average price of $107.55, for a total transaction of $6,427,403.10. Following the transaction, the senior vice president now owns 78,582 shares in the company, valued at approximately $8,451,494.10. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.50% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of DGX. YorkBridge Wealth Partners LLC increased its stake in Quest Diagnostics by 1.5% in the first quarter. YorkBridge Wealth Partners LLC now owns 1,188 shares of the medical research company’s stock worth $127,000 after buying an additional 18 shares in the last quarter. Parallel Advisors LLC increased its stake in Quest Diagnostics by 16.1% in the first quarter. Parallel Advisors LLC now owns 1,279 shares of the medical research company’s stock worth $137,000 after buying an additional 177 shares in the last quarter. Advisors Capital Management LLC bought a new stake in Quest Diagnostics during the first quarter worth approximately $164,000. Trust Co. of Vermont increased its stake in Quest Diagnostics by 8.5% in the first quarter. Trust Co. of Vermont now owns 1,859 shares of the medical research company’s stock worth $182,000 after buying an additional 145 shares in the last quarter. Finally, Financial Architects Inc increased its stake in Quest Diagnostics by 5.6% in the second quarter. Financial Architects Inc now owns 1,666 shares of the medical research company’s stock worth $185,000 after buying an additional 88 shares in the last quarter. Institutional investors and hedge funds own 90.81% of the company’s stock.
Quest Diagnostics Company Profile
Quest Diagnostics Incorporated is a provider of diagnostic information services. The Company operates through two businesses: Diagnostic Information Services and Diagnostic Solutions. The Diagnostic Information Services business develops and delivers diagnostic testing information and services, providing insights that empower and enable a range of customers, including patients, clinicians, hospitals, integrated delivery networks (IDNs), health plans, employers and accountable care organizations (ACOs).
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