Insider Activity Update: Catherine T Doherty Executes Options Exercise, Resulting In $1.89M At Quest Diagnostics

On December 2, it was revealed in an SEC filing that Catherine T Doherty, EVP at Quest Diagnostics DGX executed a significant exercise of company stock options.

What Happened: Disclosed in a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, Doherty, EVP at Quest Diagnostics, executed a strategic derivative sale. This involved exercising stock options for 33,103 shares of DGX, resulting in a transaction value of $1,887,864.

During Tuesday's morning session, Quest Diagnostics shares down by 0.56%, currently priced at $160.6. Considering the current price, Doherty's 33,103 shares have a total value of $1,887,864.

Get to Know Quest Diagnostics Better

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the us. 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.

Quest Diagnostics: A Financial Overview

Revenue Growth: Quest Diagnostics displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 8.41%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Analyzing Profitability Metrics:

• Gross Margin: With a high gross margin of 32.6%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Quest Diagnostics's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.01.

Debt Management: Quest Diagnostics's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.02.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 21.71 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.89, 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): Quest Diagnostics's EV/EBITDA ratio at 13.61 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Exploring the Significance of Insider Trading

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

A Deep Dive into Insider Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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