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

Shares of Quest Diagnostics Incorporated (NYSE:DGX - Get Free Report) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $161.86, but opened at $169.00. Quest Diagnostics shares last traded at $173.63, with a volume of 148,141 shares traded.

The medical research company reported $2.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.15 by $0.06. Quest Diagnostics had a return on equity of 15.07% and a net margin of 8.80%. The business had revenue of $2.65 billion for the quarter, compared to analysts' expectations of $2.63 billion.

Quest Diagnostics Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 21st. Stockholders of record on Monday, April 7th were paid a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 1.84%. This is a positive change from Quest Diagnostics's previous quarterly dividend of $0.75. The ex-dividend date of this dividend was Monday, April 7th. Quest Diagnostics's dividend payout ratio is 40.46%.

Analyst Ratings Changes

A number of brokerages have commented on DGX. Barclays upped their price target on Quest Diagnostics from $175.00 to $185.00 and gave the stock an "equal weight" rating in a research report on Wednesday. StockNews.com downgraded shares of Quest Diagnostics from a "buy" rating to a "hold" rating in a report on Thursday, February 6th. Leerink Partnrs raised Quest Diagnostics from a "hold" rating to a "strong-buy" rating in a report on Monday, January 6th. Redburn Atlantic started coverage on Quest Diagnostics in a research report on Wednesday, April 2nd. They issued a "buy" rating and a $195.00 price objective on the stock. Finally, Mizuho increased their target price on Quest Diagnostics from $178.00 to $189.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 9th. Eight equities research analysts have rated the stock with a hold rating, seven have assigned a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, Quest Diagnostics presently has a consensus rating of "Moderate Buy" and a consensus price target of $183.73.

Insider Transactions at Quest Diagnostics

In other Quest Diagnostics news, SVP Karthik Kuppusamy sold 2,555 shares of the business's stock in a transaction that occurred on Wednesday, April 2nd. The stock was sold at an average price of $170.00, for a total transaction of $434,350.00. Following the sale, the senior vice president now directly owns 10,575 shares of the company's stock, valued at $1,797,750. The trade was a 19.46 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO J. E. Davis sold 39,191 shares of the firm's stock in a transaction that occurred on Wednesday, April 2nd. The shares were sold at an average price of $168.46, for a total value of $6,602,115.86. Following the completion of the sale, the chief executive officer now directly owns 127,623 shares of the company's stock, valued at $21,499,370.58. The trade was a 23.49 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 55,903 shares of company stock worth $9,460,221 in the last three months. Insiders own 8.16% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of DGX. BankPlus Wealth Management LLC boosted its stake in shares of Quest Diagnostics by 2.5% during the 1st quarter. BankPlus Wealth Management LLC now owns 2,410 shares of the medical research company's stock worth $408,000 after purchasing an additional 59 shares during the period. Meiji Yasuda Asset Management Co Ltd. boosted its position in shares of Quest Diagnostics by 1.6% during the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 3,843 shares of the medical research company's stock valued at $580,000 after buying an additional 60 shares during the period. Net Worth Advisory Group grew its stake in shares of Quest Diagnostics by 1.0% during the fourth quarter. Net Worth Advisory Group now owns 6,495 shares of the medical research company's stock valued at $980,000 after buying an additional 62 shares during the last quarter. Bessemer Group Inc. raised its holdings in shares of Quest Diagnostics by 0.3% in the fourth quarter. Bessemer Group Inc. now owns 20,811 shares of the medical research company's stock worth $3,140,000 after buying an additional 65 shares during the period. Finally, Clarius Group LLC lifted its stake in shares of Quest Diagnostics by 4.8% during the 1st quarter. Clarius Group LLC now owns 1,421 shares of the medical research company's stock worth $240,000 after acquiring an additional 65 shares during the last quarter. Institutional investors own 88.06% of the company's stock.

Quest Diagnostics Price Performance

The stock has a 50 day moving average of $168.88 and a 200-day moving average of $160.81. The stock has a market capitalization of $19.42 billion, a P/E ratio of 22.63, a price-to-earnings-growth ratio of 2.16 and a beta of 0.78. The company has a current ratio of 1.10, a quick ratio of 1.02 and a debt-to-equity ratio of 0.82.

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.