Quest Diagnostics to acquire Allina Health lab assets By (2024)

SECAUCUS, N.J. - Quest Diagnostics (NYSE: NYSE:DGX), a prominent provider of diagnostic information services, has reached a definitive agreement to acquire select laboratory assets from Allina Health, a non-profit healthcare system. This move aims to expand the accessibility and affordability of advanced laboratory services in Minnesota and western Wisconsin.

The collaboration between Quest and Allina Health is expected to enhance the quality of lab services available to providers and patients in the region. Dominica Tallarico, Chief Operations Officer for Allina Health, expressed confidence in Quest's ability to build on their established foundation of excellence in laboratory services. She also noted that the agreement would enable Allina Health to reinvest in its non-profit mission.

Jim Davis, Chairman, CEO and President of Quest Diagnostics, highlighted the shared commitment between the two organizations to community health. Davis stated that the transaction aligns with Quest's growth strategy, which includes expanding through strategic lab acquisitions. The deal will allow Quest to offer its laboratory services to Allina Health's clinic physicians and outreach provider clients.

The transaction is scheduled to be finalized in the third quarter of 2024, subject to customary regulatory reviews. The financial terms of the agreement have not been disclosed.

Quest Diagnostics is known for its contribution to the healthcare ecosystem by providing diagnostic insights that support improved health outcomes. Annually, the company serves a significant portion of adult Americans and healthcare professionals nationwide.

In other recent news, Quest Diagnostics has been in the spotlight for several noteworthy developments. Citi maintains a neutral rating on the company's stock, predicting potential margin improvements by 2024 and a positive outlook based on high utilization rates. The company's management has also expressed strong confidence in a delay in the Protecting Access to Medicare Act (PAMA), which is seen as a significant variable affecting long-term margins.

Quest Diagnostics has finalized the acquisition of PathAI Diagnostics' laboratory assets, aiming to enhance the use of artificial intelligence (AI) and digital pathology in disease diagnosis. The newly acquired facility in Memphis, now rebranded as AmeriPath, will serve as Quest's hub for AI and digital research and development.

In leadership changes, Robert B. Carter, currently the Executive Vice President and Chief Information Officer at FedEx Corporation (NYSE:FDX), has joined Quest Diagnostics' Board of Directors, and Murali Balakumar has been named Senior Vice President and Chief Information and Digital Officer.

Quest Diagnostics has announced a quarterly cash dividend of $0.75 per share. Additionally, a study conducted by Haystack Oncology, a subsidiary of Quest Diagnostics, suggests that circulating tumor DNA (ctDNA) testing for minimal residual disease could potentially reduce health plan costs by up to 21% for stage II colorectal cancer patients. These are recent developments that highlight Quest Diagnostics' commitment to integrating advanced technologies into its operations, expanding its leadership team, and providing value to its shareholders.

InvestingPro Insights

As Quest Diagnostics (NYSE: DGX) continues to execute its growth strategy through acquisitions like the recent agreement with Allina Health, the company's financial health and market performance remain critical for investors monitoring the deal's potential impact. According to InvestingPro data, Quest Diagnostics boasts a market capitalization of $15.39 billion, underscoring its significant presence in the diagnostics sector.

InvestingPro Tips indicate that management's confidence in the company's trajectory is evident through their aggressive share buyback strategy. Additionally, the company's commitment to returning value to shareholders is highlighted by its impressive track record of raising its dividend for 12 consecutive years, a testament to its financial stability and investor-friendly approach.

Despite a slight revenue decline of 3.29% over the last twelve months as of Q1 2024, Quest Diagnostics maintains a strong gross profit margin of 33.08%, indicating effective cost management and an ability to sustain profitability. Moreover, with a P/E ratio of 18.37, the company is trading at a valuation that reflects investor expectations for continued earnings strength.

For investors seeking more in-depth analysis and additional InvestingPro Tips for Quest Diagnostics, consider exploring the full suite of insights available at There, you will find a comprehensive list of tips to guide your investment decisions. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering you even more value as you navigate the investment landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Quest Diagnostics to acquire Allina Health lab assets By (2024)


Should I buy DGX stock? ›

Quest Diagnostics has 5.98% upside potential, based on the analysts' average price target. Quest Diagnostics has a consensus rating of Hold which is based on 2 buy ratings, 10 hold ratings and 0 sell ratings. The average price target for Quest Diagnostics is $146.09.

Is Quest Diagnostics publicly traded? ›

Where do Quest Diagnostics shares of stock, bonds and options trade? Shares in Quest Diagnostics trade on the New York Stock Exchange under the symbol "DGX." Fixed Income bonds trade over the counter. Options on DGX shares are traded on the Chicago Board Options Exchange.

Is Quest Diagnostics the same as Labcorp? ›

Conclusion: Choosing between Labcorp and Quest Diagnostics ultimately depends on your specific healthcare needs, location, and personal preferences. Both labs are reputable, offer a wide range of services, and maintain high standards of quality and accuracy.

Is Quest Diagnostics a fortune 500 company? ›

A Fortune 500 company, Quest operates in the United States, Puerto Rico, Mexico, and Brazil. Quest also maintains collaborative agreements with various hospitals and clinics across the globe. 1967 in New York City, New York, U.S. Secaucus, New Jersey, U.S.

Should I invest in Quest Diagnostics? ›

Valuation metrics show that Quest Diagnostics Incorporated may be undervalued. Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of DGX, demonstrate its potential to outperform the market. It currently has a Growth Score of C.

What is the dividend growth rate for DGX? ›

GDX Dividend Information

GDX has a dividend yield of 1.50% and paid $0.50 per share in the past year. The dividend is paid once per year and the last ex-dividend date was Dec 18, 2023.

Who is the largest shareholder of Quest Diagnostics? ›

Top Holders: Mutual Funds
Shares HeldFiling Date
The Vanguard Group, Inc.13,921,95503/31/2024
BlackRock, Inc.10,700,57303/31/2024
State Street Corporation5,199,19403/31/2024
Victory Capital Management Inc.3,922,33103/31/2024
21 more rows

What is the sister Company of Quest Diagnostics? ›

100 % Quest Diagnostics Ventures LLC (DE)
100% Athena Diagnostics, Inc. (DE)
100% American Medical Laboratories, Incorporated (DE)
100% Quest Diagnostics Nichols Institute, Inc. (VA)
100% Quest Diagnostics Incorporated (NV)
46 more rows

How profitable is Quest Diagnostics? ›

Quest Diagnostics (NYSE:DGX) First Quarter 2024 Results

Revenue: US$2.37b (up 1.5% from 1Q 2023). Net income: US$194.0m (down 3.5% from 1Q 2023). Profit margin: 8.2% (down from 8.6% in 1Q 2023).

Why is Quest so much cheaper than LabCorp? ›

However, if you're asking about the price, our Quest prices are lower simply because our agreements with Quest are a bit different than those with Labcorp. Both Quest & Labcorp are America's largest clinical laboratories that we've partnered with for collection and processing of specimens for our customers since 2005.

What is the new name for labcorp? ›

9, 2023-- Labcorp (NYSE: LH), a leading global life sciences company, today announced that the new company to be formed by the planned spin-off of its Clinical Development business will be known as Fortrea.

Who is Quest Diagnostics biggest competitor? ›

The main competitors of Quest Diagnostics include Laboratory Co. of America (LH), Natera (NTRA), Exact Sciences (EXAS), BioMarin Pharmaceutical (BMRN), Teva Pharmaceutical Industries (TEVA), BeiGene (BGNE), Avantor (AVTR), Viatris (VTRS), Neurocrine Biosciences (NBIX), and Cooper Companies (COO).

Who is Quest owned by? ›

On November 29, 2021, Clearlake Capital bought Quest from Francisco Partners for $5.4 billion, including debt.

What is the largest lab in the US? ›

An aerial view of the Oak Ridge National Laboratory campus. The U.S. Department of Energy's (DOE) Oak Ridge National Laboratory (ORNL) is the nation's largest multi-program science and technology laboratory.

Is DG stock a good investment? ›

Dollar General has 15.63% upside potential, based on the analysts' average price target. Dollar General has a consensus rating of Moderate Buy which is based on 8 buy ratings, 9 hold ratings and 1 sell ratings. The average price target for Dollar General is $150.88.

Is General Motors good to invest in? ›

Per share GM boasts an average earnings surprise of 17.8%. With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding GM to their portfolios.

Is GE stock worth buying? ›

Out of the 16 analysts tracking General Electric stock, 11 recommend a “strong buy,” one recommends a “moderate buy,” and four recommend a “hold.” The average target price for GE stock is $158.64, which is below the current trading price. The Street-high target of $185 implies expected upside of roughly 9%.

Should I buy core scientific stock? ›

Core Scientific has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 3 buy ratings, no hold ratings, and no sell ratings.

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