Contravisory Investment Management Inc., a reputable investment firm, recently announced the acquisition of shares in Quest Diagnostics Incorporated (NYSE: DGX). In the second quarter, the company purchased 3,064 shares of Quest Diagnostics’ stock, with an estimated value of around $431,000. This move demonstrates Contravisory’s confidence in the potential growth and stability of the medical research company.
Quest Diagnostics, known for its significant contributions to the healthcare industry, conducts extensive diagnostic testing and provides insights that aid physicians and patients in making informed decisions about their health. The firm’s acquisition by Contravisory reflects the latter’s strategic investment decisions based on thorough research and analysis.
Looking ahead, Quest Diagnostics has recently disclosed plans to distribute a quarterly dividend to its shareholders. This payment is scheduled for Monday, October 23rd. Stockholders recorded as of Friday, October 6th will be entitled to a dividend payment of $0.71 per share. It is worth noting that Quest Diagnostics has already declared an ex-dividend date of Thursday, October 5th.
This new dividend offering showcases Quest Diagnostics’ commitment to providing value to its shareholders while maintaining a sustainable financial outlook. With an annualized dividend amounting to $2.84 per share and a respectable yield rate of 2.26%, investors can expect this distribution to contribute positively to their returns.
Furthermore, Quest Diagnostics displays prudent financial management through its dividend payout ratio, which currently stands at 41.34%. This figure indicates that the company is allocating a reasonable portion of its earnings toward rewarding shareholders with dividends while retaining enough capital for reinvestment opportunities and operational growth.
As investors continue evaluating their portfolio options within the healthcare sector, Contravisory Investment Management Inc.’s acquisition of shares in Quest Diagnostics serves as a noteworthy endorsement for potential investors seeking stable investments with long-term prospects. By acquiring these shares at an opportune time, Contravisory effectively positions itself to benefit from future growth and market expansion within the medical research industry.
In conclusion, Contravisory Investment Management Inc.’s recent acquisition of Quest Diagnostics’ shares is a significant development. This move indicates not only their confidence in the company’s potential but also highlights Quest Diagnostics’ commitment to rewarding its shareholders through regular dividend distributions. With a solid dividend payout ratio and respectable yield, Quest Diagnostics provides investors with an opportunity for both stability and a consistent stream of income. As such, it will be interesting to observe the impact of this acquisition on Contravisory’s portfolio performance in the coming quarters.
Roivant Sciences Ltd.
Updated on: 29/09/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Strong Sell
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Quest Diagnostics: Strong Financial Performance and Institutional Investor Interest
In recent times, there has been a notable increase in the activities of hedge funds and other institutional investors in the trading of Quest Diagnostics’ shares. Notably, Sandy Spring Bank augmented its position in the medical research company by 100.0% during the fourth quarter, acquiring an additional 100 shares worth $31,000. Chilton Capital Management LLC also entered the fray during the first quarter with a stake valued at approximately $28,000. Similarly, Compagnie Lombard Odier SCmA and Thompson Siegel & Walmsley LLC purchased new stakes worth $46,000 each during the fourth quarter. Creative Financial Designs Inc. ADV saw a staggering increase of 3,310.0% in its position during the first quarter and it now owns 341 shares valued at $48,000.
It is interesting to note that currently, institutional investors and hedge funds hold an impressive 87.76% ownership of Quest Diagnostics’ stock.
Notable equities research analysts have also contributed their opinions on Quest Diagnostics’ stock. Morgan Stanley reiterated an “equal weight” rating for the stock along with a price target of $145.00 in a research report released on August 3rd. Additionally, Piper Sandler initiated coverage on Quest Diagnostics with a “neutral” rating while StockNews.com rated it as “hold”. In total, ten analysts have given it a hold rating while two have recommended buying the stock. According to Bloomberg’s data, there is an average consensus price target of $149.90 for Quest Diagnostics.
As of Tuesday’s opening, Quest Diagnostics’ stock was priced at $125.79 per share with a 52-week low of $120.40 and a high of $158.34.
The company boasts a market capitalization of $14.12 billion with key financial indicators showing stability and promise for investors. With a P/E ratio of 18.31 and a beta of 0.95, Quest Diagnostics has exhibited strong financial performance. Its 50-day moving average stands at $134.28, while the 200-day moving average is slightly higher at $136.46.
In terms of recent financial results, Quest Diagnostics released its quarterly earnings for the period ending July 26th. The medical research company reported an EPS of $2.30, surpassing analysts’ consensus estimates by $0.07. It generated a revenue of $2.34 billion during the quarter compared to the projected figure of $2.25 billion. Despite a 4.7% decline in quarterly revenue on a year-over-year basis, Quest Diagnostics showcased a robust net margin of 8.37% and an impressive return on equity of 16.32%. In the same quarter of the previous fiscal year, it had recorded an EPS of $2.36.
Looking ahead, research analysts predict that Quest Diagnostics will achieve an EPS of 8.7 for the full fiscal year.
Overall, with its strong financial performance and positive analyst ratings, Quest Diagnostics presents itself as a stable and potentially lucrative investment opportunity for institutional investors and hedge funds alike.