Insider Unloading: Karthik Kuppusamy Sells $304K Worth Of Quest Diagnostics Shares

Karthik Kuppusamy, SVP at Quest Diagnostics DGX, disclosed an insider sell on August 29, according to a recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Kuppusamy sold 1,990 shares of Quest Diagnostics. The total transaction amounted to $304,989.

As of Friday morning, Quest Diagnostics shares are down by 0.0%, currently priced at $156.23.

Get to Know Quest Diagnostics Better

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the U.S. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk assessment services, and information technology solutions.

Financial Insights: Quest Diagnostics

Revenue Growth: Over the 3 months period, Quest Diagnostics showcased positive performance, achieving a revenue growth rate of 2.52% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 33.54%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.05, Quest Diagnostics showcases strong earnings per share.

Debt Management: Quest Diagnostics's debt-to-equity ratio is below the industry average. With a ratio of 0.77, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 21.08 is lower than the industry average, implying a discounted valuation for Quest Diagnostics's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.87, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 12.68, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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The Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Quest Diagnostics's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.