Share Buyback Plan Declared by Quest Diagnostics (NYSE:DGX) Board of Directors

Quest Diagnostics (NYSE:DGX) announced that its board has initiated a stock buyback program on Tuesday, February 10th, RTT News reports. The company plans to buyback $1.00 billion in outstanding shares. This buyback authorization permits the medical research company to buy up to 4.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.

Quest Diagnostics Stock Performance

Shares of DGX traded up $13.71 during mid-day trading on Tuesday, hitting $204.96. The stock had a trading volume of 2,295,792 shares, compared to its average volume of 1,098,539. Quest Diagnostics has a fifty-two week low of $157.20 and a fifty-two week high of $207.05. The company has a quick ratio of 1.04, a current ratio of 1.13 and a debt-to-equity ratio of 0.71. The company has a market cap of $22.80 billion, a PE ratio of 24.06, a PEG ratio of 2.42 and a beta of 0.66. The company’s fifty day simple moving average is $181.77 and its two-hundred day simple moving average is $181.77.

Quest Diagnostics (NYSE:DGX) last posted its quarterly 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 15.47% and a net margin of 8.91%.The business had revenue of $2.81 billion for the quarter, compared to analyst estimates of $2.75 billion. During the same period in the prior year, the company posted $2.23 EPS. The business’s revenue was up 7.1% compared to the same quarter last year. Quest Diagnostics has set its FY 2026 guidance at 9.45-9.650 EPS. On average, equities analysts expect that Quest Diagnostics will post 9.7 earnings per share for the current year.

Quest Diagnostics Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, April 20th. Stockholders of record on Monday, April 6th will be given a $0.86 dividend. This represents a $3.44 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Monday, April 6th. This is an increase from Quest Diagnostics’s previous quarterly dividend of $0.80. Quest Diagnostics’s payout ratio is 37.56%.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on DGX. Truist Financial raised their target price on Quest Diagnostics from $195.00 to $205.00 and gave the company a “hold” rating in a research note on Wednesday, October 22nd. Leerink Partners increased their price target on Quest Diagnostics from $203.00 to $210.00 and gave the company an “outperform” rating in a report on Tuesday, October 21st. Piper Sandler lifted their price objective on Quest Diagnostics from $190.00 to $200.00 and gave the stock a “neutral” rating in a report on Monday, October 27th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $220.00 target price on shares of Quest Diagnostics in a research report on Tuesday. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Quest Diagnostics in a research report on Monday, December 29th. Eight equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Quest Diagnostics currently has a consensus rating of “Moderate Buy” and an average target price of $201.00.

Insider Activity

In related news, CEO J. E. Davis sold 55,093 shares of the business’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $192.22, for a total transaction of $10,589,976.46. Following the completion of the sale, the chief executive officer owned 120,480 shares of the company’s stock, valued at $23,158,665.60. This represents a 31.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Vicky B. Gregg sold 1,250 shares of the stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $191.76, for a total transaction of $239,700.00. Following the sale, the director owned 17,037 shares in the company, valued at approximately $3,267,015.12. This trade represents a 6.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 64,289 shares of company stock valued at $12,318,360. Company insiders own 8.16% of the company’s stock.

Key Headlines Impacting Quest Diagnostics

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

• Positive Sentiment: Q4 results beat consensus: adjusted EPS of $2.42 topped estimates and revenue of $2.81B was up 7.1% year-over-year, driven by stronger test volumes and price/mix. This is the core catalyst cited by multiple outlets. Yahoo Finance: Q4 Highlights
• Positive Sentiment: Shareholder-return boost: board raised the quarterly dividend 7.5% to $0.86 and authorized an additional $1.0B in share repurchases — a clear positive for income and buyback-driven EPS support. PR Newswire: Dividend & Repurchase
• Positive Sentiment: Analyst/market reaction: shares hit a 52‑week high and Citigroup raised its price target to $215 (neutral rating), reflecting positive reception to the quarter and capital return actions. MSN: 52-week high Benzinga: Citi PT raise
• Positive Sentiment: Longer-term growth potential: CEO comments on developing blood-based Alzheimer’s diagnostics highlight a potential new growth avenue if tests gain clinical adoption and reimbursement. YouTube: CEO on Alzheimer’s testing
• Neutral Sentiment: Investor materials and call: company released the earnings press release, slide deck and full transcript; management reiterated drivers (volume growth, pricing, cost control) that investors will parse for sustainability. Press Release / Slide Deck
• Negative Sentiment: Guidance is mixed: FY2026 reported diluted EPS guidance of $9.45–$9.65 (and adjusted EPS ranges detailed in the release) may sit below some street estimates, creating a risk that analysts trim expectations despite the quarter. PR Newswire: Q4 Results & Guidance

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.