Stock Buyback Plan Authorized by Quest Diagnostics (NYSE:DGX)

Quest Diagnostics (NYSE:DGX) announced that its Board of Directors has approved a stock buyback plan on Tuesday, February 10th, RTT News reports. The company plans to repurchase $1.00 billion in shares. This repurchase authorization permits the medical research company to buy up to 4.7% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Quest Diagnostics Stock Down 1.1%

Quest Diagnostics stock opened at $207.12 on Friday. The firm has a 50 day moving average price of $182.76 and a 200-day moving average price of $182.13. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.72. Quest Diagnostics has a twelve month low of $157.20 and a twelve month high of $213.20. The company has a market capitalization of $23.04 billion, a P/E ratio of 23.67, a P/E/G ratio of 2.60 and a beta of 0.66.

Quest Diagnostics (NYSE:DGX) last issued its earnings results on Tuesday, February 10th. The medical research company reported $2.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.35 by $0.07. Quest Diagnostics had a return on equity of 15.57% and a net margin of 8.99%.The firm had revenue of $2.81 billion for the quarter, compared to analyst estimates of $2.75 billion. During the same period in the previous year, the company posted $2.23 earnings per share. The business’s revenue was up 7.1% on a year-over-year basis. Quest Diagnostics has set its FY 2026 guidance at 9.45-9.650 EPS. As a group, equities analysts predict that Quest Diagnostics will post 9.7 EPS for the current year.

Quest Diagnostics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 20th. Investors of record on Monday, April 6th will be paid a $0.86 dividend. The ex-dividend date is Monday, April 6th. This represents a $3.44 dividend on an annualized basis and a yield of 1.7%. This is an increase from Quest Diagnostics’s previous quarterly dividend of $0.80. Quest Diagnostics’s dividend payout ratio (DPR) is presently 36.57%.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on DGX shares. Morgan Stanley set a $207.00 price target on shares of Quest Diagnostics and gave the stock an “overweight” rating in a report on Wednesday, October 22nd. Jefferies Financial Group lifted their target price on shares of Quest Diagnostics from $215.00 to $220.00 and gave the stock a “buy” rating in a research report on Tuesday. Citigroup upped their target price on Quest Diagnostics from $190.00 to $215.00 and gave the company a “neutral” rating in a report on Tuesday. UBS Group increased their price target on Quest Diagnostics from $190.00 to $210.00 and gave the company a “neutral” rating in a research report on Wednesday. Finally, Mizuho lifted their price target on Quest Diagnostics from $210.00 to $235.00 and gave the stock an “outperform” rating in a report on Thursday. Eight investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $208.93.

Insider Buying and Selling at Quest Diagnostics

In related news, SVP Patrick Plewman sold 5,662 shares of the company’s stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $204.00, for a total transaction of $1,155,048.00. Following the sale, the senior vice president directly owned 15,381 shares in the company, valued at approximately $3,137,724. This represents a 26.91% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, SVP Mark E. Delaney sold 7,946 shares of Quest Diagnostics stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $187.35, for a total transaction of $1,488,683.10. Following the completion of the transaction, the senior vice president owned 7,530 shares of the company’s stock, valued at $1,410,745.50. This represents a 51.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 69,951 shares of company stock valued at $13,473,408 in the last three months. 8.16% of the stock is owned by company insiders.

Quest Diagnostics News Roundup

Here are the key news stories impacting Quest Diagnostics this week:

• Positive Sentiment: Better-than-expected Q4 results and stronger guidance helped drive a fresh 12?month high, supporting the view that growth and margins are improving. Read More.
• Positive Sentiment: The board approved a $1.0 billion share repurchase authorization (about 4.7% of shares outstanding), which is shareholder?friendly and typically supports EPS and the stock price. Read More.
• Positive Sentiment: Analyst upgrades/target raises: Mizuho raised its target to $235 (Outperform) and Barclays raised to $225 (Overweight), reflecting bullish analyst views and additional upside to consensus. Read More. Read More.
• Positive Sentiment: Major analysts reiterated constructive ratings — Morgan Stanley reiterated a Buy citing a strong 2026 outlook and margin expansion, and Citigroup published a bullish price?appreciation forecast. These endorsements support longer?term demand. Read More. Read More.
• Neutral Sentiment: Analytical pieces question sustainability after a 52?week high and review fundamentals — useful context for assessing valuation and the potential for continued upside. Read More.
• Neutral Sentiment: The Q4 earnings call transcript is available for investors who want management’s commentary on trends, margin drivers, and the 2026 outlook (useful but not market-moving by itself). Read More.
• Negative Sentiment: An insider sale: SVP Patrick Plewman sold 5,662 shares (~27% reduction of his holding) at about $204, which can spook some investors or be interpreted as tactical selling. Read More.

About Quest Diagnostics

Quest Diagnostics (NYSE: DGX) is a leading provider of diagnostic information services that supports clinical decision-making for patients, physicians and healthcare organizations. The company operates a network of clinical laboratories and patient service centers that perform a broad range of laboratory tests and diagnostic assays used in routine care, disease diagnosis, monitoring and screening.

Its services span core clinical laboratory testing, anatomic pathology, molecular and genomic diagnostics, infectious disease testing and toxicology.