Quest Diagnostics CEO Sells 10,000 Shares for $2.4 Million
Key Points
The transaction involved 10,000 shares with an estimated value of ~$2.4 million based on the execution price on September 1, 2026.
The shares traded represent 8% of the equity stake held directly by the executive prior to this filing.
This was a direct sale of common stock and did not involve indirect holdings or derivative exercises.
The disposal was conducted under a Rule 10b5-1 trading plan, reflecting a routine portfolio adjustment rather than a discretionary market move.
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J. E. Davis, CEO and President, sold 10,000 shares of Quest Diagnostics Incorporated (NYSE:DGX) at $242.72 per share on Sept. 1, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Transaction value | $2.4 million |
| Shares sold | 10,000 |
| Post-transaction shares (directly held) | 122,423 |
| Post-transaction value | $28.9 million |
Transaction value based on SEC Form 4 weighted average sale price ($242.72); post-transaction value based on Sept. 1, 2026, market close ($236.22).
Key questions
- What was the regulatory context of this transaction?
The sale was executed pursuant to a Rule 10b5-1 trading plan previously adopted by J. E. Davis, which allows insiders to schedule stock trades in advance to meet liquidity needs while complying with insider trading regulations. - How does this sale impact the executive's total equity position?
Following the disposal of 10,000 shares, J. E. Davis continues to hold a direct position of 122,423 shares in the diagnostic testing company, which represents a total post-transaction value of $28.9 million as of the Sept. 1, 2026, market close. - What has been the recent performance context for the stock?
The transaction took place at $242.72 per share, with the company's equity having realized a 32% total return over the 12 months ending on the transaction date of Sept. 1, 2026. - What is the broader ownership structure following this move?
Insiders collectively maintain a 0.11% ownership stake in the $26.4 billion firm, which provides advanced clinical and anatomic pathology testing services from its headquarters in Secaucus.
Company Overview
| Metric | Value |
|---|---|
| Share Price (as of market close 2026-09-02) | $240.80 |
| Market Capitalization | $26.5 billion |
| Revenue (TTM) | $11.6 billion |
| Net Income (TTM) | $1.1 billion |
Company Snapshot
- Quest Diagnostics provides comprehensive diagnostic testing services, including routine clinical testing, advanced diagnostic services, and anatomic pathology testing, generating revenue through laboratory testing fees and information services delivered to healthcare providers, employers, and patients.
- The company operates a network-based business model that leverages its extensive laboratory infrastructure and patient service centers to deliver diagnostic information services at scale, with revenue generated from per-test fees, reference laboratory services, and data analytics offerings.
- Quest Diagnostics serves a diverse customer base, including physicians, hospitals, employers, insurance companies, and individual patients, positioning itself as a critical intermediary in the healthcare value chain for diagnostic information and clinical decision support.
Quest Diagnostics is one of the largest clinical laboratory networks in the United States, with approximately 51,500 employees and a market capitalization of $26.4 billion. The company has demonstrated strong operational performance with TTM revenue of $11.6 billion and net income of $1.1 billion, reflecting its established market position and operational efficiency in the diagnostics sector.
As a market leader in clinical diagnostics, Quest Diagnostics benefits from high barriers to entry, established customer relationships, and recurring revenue streams from routine testing services.
What this transaction means for investors
This sale shouldn't concern investors. It represented a small percentage of the officer's holdings in the stock. It was also executed under a Rule 10b5-1 plan, which insiders commonly use to make sales for personal financial management reasons without regard to the company's fundamentals or valuation.
Importantly, the company's TTM revenue grew 10% year over year through the second quarter. Its operating margin is holding firm in the mid-teens range. This shows solid execution in the company's strategy to link providers and patients with testing and results.
Analysts anticipate around 8% annualized earnings growth over the next several years, with the stock currently trading at 20x this year's consensus earnings estimate.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Quest Diagnostics. The Motley Fool has a disclosure policy.
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