Quest Diagnostics CEO sells $6.6 million in stock

Published 05/04/2025, 01:32
Quest Diagnostics CEO sells $6.6 million in stock

James E. Davis, CEO and President of Quest Diagnostics Inc. (NYSE:DGX), recently executed a series of stock sales totaling approximately $6.6 million. The transactions took place on April 2, 2025, with sale prices ranging from $167.86 to $169.634 per share. The stock, which has demonstrated low price volatility according to InvestingPro data, currently trades at $164.18 with a market capitalization of $18.3 billion. Following these transactions, Davis holds 127,623 shares of Quest Diagnostics common stock. These sales were conducted under a pre-arranged Rule 10b5-1 trading plan. Quest Diagnostics maintains a strong financial profile with a "GOOD" overall health score and has consistently paid dividends for 22 consecutive years, currently yielding 1.95%. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with additional insights available in the comprehensive Pro Research Report covering this healthcare provider.

In other recent news, Quest Diagnostics has introduced a new FDA-cleared self-collection service for human papillomavirus (HPV) screening, aimed at improving access to cervical cancer screening. This service will be available at its 2,000 patient service centers across the United States next month. Redburn-Atlantic has initiated coverage on Quest Diagnostics with a Buy rating and a price target of $195, citing potential steady growth and strategic acquisitions. Meanwhile, Truist Securities has maintained its Hold rating on the company, with a price target of $182, highlighting Quest Diagnostics’ significant scale and promising growth opportunities.

Quest Diagnostics has outlined a strategy for sustainable growth, projecting a 4-5% compound annual growth rate (CAGR) in revenues and a 7-9% CAGR in adjusted diluted earnings per share (EPS) beyond 2025. However, the company anticipates a first-quarter revenue headwind of approximately $25 million and an EPS headwind of about $0.10 due to adverse weather conditions. The company has reaffirmed its full-year 2025 guidance, with projected net revenues between $10.70 billion and $10.85 billion and an adjusted diluted EPS range of $9.55 to $9.80. Citi and Baird have offered mixed reactions to Quest’s guidance, with Baird acknowledging the weather impact but remaining positive on the stock due to expected earnings acceleration. Quest Diagnostics is also focusing on strategic investments in automation, robotics, and artificial intelligence to enhance efficiency and margin expansion.

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