Quest Diagnostics (DGX) Stock Higher After Takeover Tweet Caused Spike

NEW YORK (TheStreet) -- Quest Diagnostics (DGX) shares are climbing 6.51% to $78.68 in afternoon trading on Friday, coming back down to earth after the stock spiked to intraday trading highs today following a tweet from a Twitter user saying that the company hired Goldman Sachs  (GS) after receiving a $95 per share bid.

Trading of Quest Diagnostics, diagnostic testing, information and service provider, shares were halted on the New York Stock Exchange this morning at 10:24 due to volatility as shares rose as high as $86 per share after Joe Kunkle, founder of OptionsHawk.com, tweeted that the company had hired Goldman Sachs to explore a sale. The tweet has since been deleted.

Quest has not commented on the rumors.

"I never actually said any of that. All I did was pass along what was said across the Internet on the market," Knuckle told Bloomberg earlier today.

"There are various chatrooms where this stuff gets passed around all day. It comes through instant messaging from unnamed sources. That's why it's labeled it as a rumor and unconfirmed," he said.

TheStreet Ratings team rates QUEST DIAGNOSTICS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate QUEST DIAGNOSTICS INC (DGX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

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