In a recent transaction, Karthik Kuppusamy, Senior Vice President of Clinical Solutions at Quest Diagnostics Inc. (NYSE:DGX), sold shares of the company's stock, according to a Form 4 filing with the Securities and Exchange Commission. The transaction took place on April 29, 2024, and involved the sale of 1,760 shares at a price of $140 per share, totaling $246,400.
The sale was conducted under a Rule 10b5-1 sales plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This mechanism is designed to prevent any accusations of insider trading.
Following the sale, Kuppusamy's direct ownership in Quest Diagnostics stands at 13,435 shares. Additionally, the executive has indirect ownership of 358 shares held by a trust and 1,551 shares in a 401(k) plan, as noted in the footnotes of the filing. The 401(k) shares are periodically acquired by the trustee of the company's tax-qualified Profit Sharing Plan, with the balance including some money market instruments.
Quest Diagnostics continues to be a leading provider in the medical laboratories sector, with investors keeping a close eye on transactions by company insiders for indications of the company's performance and the confidence of its executives in the firm's future.
InvestingPro Insights
As Quest Diagnostics Inc. (NYSE:DGX) remains a focal point for investors monitoring insider transactions, certain metrics and InvestingPro Tips can provide a broader context to the company's current market standing. The company's Market Cap stands at a robust $15.28 billion, reflecting its significant presence in the medical laboratories industry. A noteworthy InvestingPro Tip is that management at Quest Diagnostics has been actively buying back shares, signaling confidence in the company's value and prospects. Additionally, Quest Diagnostics has a history of rewarding shareholders, having raised its dividend for 12 consecutive years.
An important metric for investors to consider is the company's P/E Ratio, which is currently at 18.3, with an adjusted P/E Ratio for the last twelve months as of Q1 2024 at 17.12. This valuation metric, while indicative of investor expectations, also suggests that the stock is trading at a high price relative to near-term earnings growth, as noted in another InvestingPro Tip. Despite the slight revenue decline of 3.29% in the last twelve months as of Q1 2024, the company's dividend yield as of the latest data stands at 2.17%, coupled with a dividend growth of 5.63% in the same period, which could appeal to income-focused investors.
For those interested in a deeper dive into Quest Diagnostics' financial health and future outlook, there are additional InvestingPro Tips available, including analysts' predictions and earnings revisions. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these valuable insights. Currently, there are 10 additional tips listed in InvestingPro for Quest Diagnostics that can further inform investment decisions.
Investors may also want to note the company's next earnings date, scheduled for July 24, 2024, as it could provide further clarity on the company's trajectory. With Quest Diagnostics trading near its 52-week high and at 94.5% of this threshold, the company's stock stability could be a factor for investors seeking lower volatility, as the stock generally trades with low price volatility.
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