Form 4: Quest Diagnostics SVP Sells Shares Under 10b5-1 Plan

Patrick Plewman, SVP for Diagnostic Services at Quest Diagnostics, reported the exercise of stock options and subsequent sale of shares under a pre-arranged 10b5-1 trading plan.

Summary

• Patrick Plewman, SVP for Diagnostic Services at Quest Diagnostics (DGX), reported several transactions involving the company's common stock and derivative securities.
• Acquired 48 shares of Common Stock on January 28, 2026, at a price of $183.512 per share through a dividend reinvestment plan.
• Exercised 5,662 non-qualified stock options on February 10, 2026, at an exercise price of $121.805 per share.
• Sold 5,662 shares of Common Stock on February 10, 2026, at a price of $204 per share.
• The option exercise and subsequent sale of shares were executed pursuant to a Rule 10b5-1 sales plan adopted by the reporting person.
• The non-qualified stock options vested in three equal annual installments, beginning on the first annual anniversary of the grant date.
• Following these reported transactions, Patrick Plewman beneficially owns 15,381 shares of Quest Diagnostics Common Stock.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event. The sale is pre-planned, indicating no immediate negative signal, and the insider profited from the option exercise, which is a positive for the executive.

Positives

• The sale was executed under a Rule 10b5-1 plan, indicating a pre-planned transaction for diversification or liquidity rather than a reaction to new, negative information.
• The sale price of $204 per share is significantly higher than the option exercise price of $121.805, indicating a profitable transaction for the insider.
• The acquisition of 48 shares through a dividend reinvestment plan demonstrates continued participation in the company's equity.

Negatives

• An insider sale, even if pre-planned, reduces the insider's direct equity exposure to the company.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider transactions, particularly those executed under Rule 10b5-1 plans, are common for executives managing personal finances and diversifying portfolios. While a sale reduces direct insider ownership, the pre-planned nature often mitigates concerns about immediate negative sentiment regarding the company's prospects. Quest Diagnostics operates in a stable diagnostic services industry where executive compensation often includes equity components.

Corporate Governance

Stakeholder Impact

• Shareholders: May observe a slight reduction in insider ownership, but the pre-planned nature of the sale under a 10b5-1 plan generally mitigates concerns about negative company outlook.
• Employees: No direct impact mentioned.

Key Dates

Recommendation

The Form 4 filing details a routine insider transaction involving the exercise of stock options and subsequent sale of shares under a pre-arranged 10b5-1 plan. This type of transaction is common for executives managing personal finances and does not typically signal a change in the company's fundamental outlook. While it reduces the insider's direct equity stake, the pre-planned nature and the profitable execution for the executive do not provide a strong basis for a 'buy' or 'sell' recommendation. Therefore, a 'hold' recommendation is appropriate as this filing alone does not alter the investment thesis for Quest Diagnostics.

Keywords

Quest Diagnostics, DGX, Insider Trading, Form 4, Stock Options, 10b5-1 Plan, Share Sale, Executive Compensation, Patrick Plewman, Diagnostic Services