Quest Diagnostics Holds Strong Despite Sell-Off: Announces Share Buyback Program… Leave a comment
April 14, 2023 – In the world of medical research, Quest Diagnostics (NYSE:DGX) is a name that needs no introduction. Over the years, the company has carved out a niche for itself through its innovative and groundbreaking research in the healthcare sector. Recently, Sumitomo Mitsui Trust Holdings Inc. lowered its position in shares of Quest Diagnostics by 17.6% in the fourth quarter, according to reports.
The company had owned 480,445 shares of Quest Diagnostics stock at the end of the most recent reporting period after selling 102,816 shares during the quarter. This represented a decrease of over $75 million worth of stakes for Sumitomo Mitsui Trust Holdings Inc., calling attention to an interesting development.
However, this was not necessarily alarming as Quest Diagnostics recently announced a share buyback program aimed at repurchasing up to $1 billion worth of shares through open market purchases. This move has helped boost investor confidence in the company and shows that Quest Diagnostics’ board believes its stock is undervalued.
While some may note that DGX’s trading levels are moderate compared with some other companies’ stocks listed on NYSE; sitting at $142.67 as share price opened last Friday with its moving average (50-day) at $140.58 and (200-day) at $142.95 respectively; it is important to remember that firms like Quest Diagnostics have market capitalizations hovering around $15.96 billion – meaning their stocks are often more stable than many others due to their well-established foothold within their respective markets.
Quest Diagnostics operates under several divisions including Diagnostic Information Services and Diagnostic Solutions where they run comprehensive clinical laboratory testing services and develop practical solutions that help enhance patient care respectively – elevating them above being just another medical research company.
In conclusion, while Sumitomo Mitsui Trust Holdings Inc.’s recent stake sell-off has shaken some investors, Quest Diagnostics continues to maintain a strong hold as it consistently delivers innovative results through its groundbreaking research. With the announcement of their share buyback program, it is no surprise that many experts anticipate that this healthcare giant will continue to dominate as a major player in the industry for years to come.
Quest Diagnostics Attracts Investors with Steady Stock Rise and Strong Financials
Quest Diagnostics, a leading provider of diagnostic services, has been attracting investors’ attention as its stock price rises steadily. Indeed, several large investors have recently increased their investment in the company. Russell Investments Group Ltd. boosted its holdings by 10.7% and now holds over 95,000 shares valued at $11.7 million. Mercer Global Advisors Inc., Aviva PLC, UBS Asset Management Americas Inc., and Horizon Investments LLC also increased their investments in the company.
Quest has also been the subject of numerous research reports with mixed ratings from analysts. Eight rated it a “hold” while three gave it a “buy.” The consensus rating is “hold,” with an average target price of $152.45 per share.
Despite this, Quest’s performance remains solid with net margins of 9.57%. Revenue for the last quarter was $2.33 billion, which is slightly above analyst estimates of $2.26 billion. Quest reported earnings per share (EPS) of $1.98 for 4Q2022 and is expected to post EPS of $8.68 for the current year.
Investors can also look forward to Quest’s recent announcement regarding quarterly dividends: they will receive $0.71 per share instead of $0.66 previously distributed — a positive sign that the company is flourishing.
In summary, Quest Diagnostics offers investors potential growth opportunities and strong financials backed by demand for diagnostic testing services in healthcare industry worldwide – making them a contender for long-term investment portfolios needing diversified opportunities within healthcare innovation and technology companies alike!
