Michael E. Prevoznik, the Senior Vice President and General Counsel of Quest Diagnostics Inc. (NYSE:DGX), recently disclosed significant stock transactions. The $18 billion healthcare diagnostics company, which has delivered a 20.5% return year-to-date and trades near its 52-week high of $165.32, saw its Senior VP execute a sale of 35,146 shares of Quest Diagnostics common stock on November 29, resulting in a total transaction value of approximately $5.73 million. The shares were sold at a weighted average price ranging from $162.2588 to $163.1473.
Additionally, Prevoznik exercised stock options to acquire 35,146 shares at a price of $86.63 per share, totaling about $3.04 million. Following these transactions, Prevoznik's direct ownership of Quest Diagnostics common stock stands at 38,478 shares. These transactions were conducted under a Rule 10b5-1 sales plan, which allows insiders to set up a predetermined plan to sell company stock. According to InvestingPro, Quest Diagnostics has maintained dividend payments for 21 consecutive years and currently trades at a P/E ratio of 21.5x, suggesting a premium valuation relative to its near-term earnings growth potential.
In other recent news, Quest Diagnostics has reported strong third-quarter results with revenues reaching $2.49 billion, an 8.5% increase year-over-year, fueled by both organic growth and strategic acquisitions, including LifeLabs. Despite weather disruptions and operational challenges, the company offered an optimistic full-year 2024 guidance, projecting revenues between $9.8 billion and $9.85 billion and adjusted earnings per share (EPS) of $8.85 to $8.95.
Financial services firm Baird upgraded Quest Diagnostics' stock from Neutral to Outperform, reflecting a positive outlook on the healthcare sector's momentum and several favorable trends. Similarly, Leerink Partners increased their price target on Quest Diagnostics to $165 from $160, reflecting a valuation of approximately 17 times the firm's calendar year 2025 earnings per share estimate.
In other company news, Quest Diagnostics is set to launch avian flu testing later this month, following contracts awarded by the U.S. Centers for Disease Control and Prevention. The company has also received a contract to develop diagnostics for the Oropouche virus, an emerging virus in the Americas. These are the recent developments surrounding Quest Diagnostics.
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