A senior executive at Quest Diagnostics Inc (NYSE:DGX), a leading provider of diagnostic information services, has recently sold shares in the company. Karthik Kuppusamy, the company's Senior Vice President of Clinical Solutions, sold 1,990 shares of common stock at an average price of approximately $153.26, amounting to a total of over $304,989.
The transaction was carried out on August 28, with the prices of the shares ranging from $153.2557 to $153.310. This range represents the weighted average sale price, as the sale was executed in multiple trades. The exact number of shares sold at each price point within this range has not been disclosed, but the executive has committed to providing full details to the SEC, the issuer, or a security holder of the issuer upon request.
Following the sale, Kuppusamy retains ownership of 11,459 shares of Quest Diagnostics' common stock directly. Additionally, records indicate that Kuppusamy has indirect ownership of 358 shares held in trust and 1,556 shares in a 401(k) plan. These indirect holdings reflect periodic acquisitions by the company's tax-qualified Profit Sharing (401(k)) Plan, as reported by the plan administrator.
The sale was confirmed in a Form 4 filing with the Securities and Exchange Commission (SEC), which was signed on behalf of Kuppusamy by Sean D. Mersten, Attorney in Fact, on August 29.
Investors often monitor insider transactions as they can provide insights into an executive's view of the company's stock value and future performance. However, such transactions can be influenced by a variety of factors, including personal financial management, and do not necessarily indicate a change in company outlook. Quest Diagnostics has not made any official statement regarding the transaction.
In other recent news, Quest Diagnostics has seen significant developments. The firm reported a 2.5% increase in total revenue for the second quarter of 2024, reaching $2.99 billion, with full-year 2024 financial guidance anticipating revenues between $9.5 billion and $9.58 billion. The company's acquisition of LifeLabs, a leader in Canadian diagnostics, is expected to generate approximately $710 million in annual revenues. Additionally, Quest Diagnostics is set to acquire select assets of the outreach laboratory services business from University Hospitals, Ohio, anticipated to finalize in the fourth quarter of 2024.
Analysts from Mizuho maintained an Outperform rating on Quest and raised the price target to $160 from $155, while Evercore ISI resumed its coverage on Quest Diagnostics, assigning an In Line rating and establishing a price target of $165.00. These decisions came after the completion of Quest Diagnostics' acquisition of LifeLabs and the projected revenue growth from the deal.
In another development, Quest Diagnostics and BD (Becton, Dickinson and Company) announced a global collaboration to develop flow cytometry-based companion diagnostics, aiming to enhance treatment selection for cancer patients and those with other diseases. These recent developments underscore Quest Diagnostics' commitment to growth and innovation in the healthcare diagnostics market.
InvestingPro Insights
Amidst the insider trading activity at Quest Diagnostics Inc (NYSE:DGX), investors may find it beneficial to consider the company's current financial health and market performance. According to InvestingPro data, Quest Diagnostics boasts a market capitalization of $17.24 billion, suggesting a significant presence in its sector. The company's current P/E ratio stands at 20.87, which, when adjusted for the last twelve months as of Q2 2024, slightly decreases to 19.54. This could indicate that the company is fairly valued or potentially undervalued compared to future earnings potential.
Notably, Quest Diagnostics has a history of returning value to shareholders, as evidenced by an InvestingPro Tip that highlights the company's track record of raising its dividend for 13 consecutive years. Moreover, the company has maintained dividend payments for 21 consecutive years, which may be appealing to investors seeking consistent income. The dividend yield as of the latest data is 1.94%, with a dividend growth of 5.63% over the last twelve months as of Q2 2024.
From a stock performance perspective, Quest Diagnostics has seen a large price uptick over the last six months, with a 25.39% total return, and is trading near its 52-week high at 99.68% of that peak. This could suggest investor confidence and a positive market sentiment surrounding the company. For those considering an investment, it's worth noting that there are additional InvestingPro Tips available, providing more in-depth analysis and insights into Quest Diagnostics' performance and potential.
With the next earnings date set for October 22, 2024, and the stock's recent performance, investors and analysts will be watching closely to see if the company can maintain its profitability and continue its pattern of shareholder returns. For those looking for further guidance, there are six more InvestingPro Tips available that could help in making a more informed investment decision.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.