DaVita (NYSE:DVA) Shares Gap Down on Disappointing Earnings

DaVita Inc. (NYSE:DVA) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $158.31, but opened at $148.02. DaVita shares last traded at $147.88, with a volume of 202,558 shares changing hands.

The company reported $2.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.76 by ($0.17). DaVita had a return on equity of 77.00% and a net margin of 6.86%. The firm had revenue of $3.26 billion for the quarter, compared to the consensus estimate of $3.25 billion. During the same period last year, the company posted $2.85 earnings per share. The business’s revenue was up 4.6% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several analysts have issued reports on DVA shares. TD Cowen upped their price objective on DaVita from $139.00 to $150.00 and gave the company a “hold” rating in a research note on Wednesday, July 24th. UBS Group lifted their price objective on shares of DaVita from $169.00 to $175.00 and gave the stock a “buy” rating in a research report on Thursday, August 8th. Truist Financial raised their target price on shares of DaVita from $165.00 to $175.00 and gave the stock a “hold” rating in a research note on Monday, October 7th. Finally, Bank of America upped their price target on shares of DaVita from $139.00 to $145.00 and gave the company an “underperform” rating in a research note on Wednesday, August 7th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $159.00.

Insider Transactions at DaVita

In other DaVita news, insider Kathleen Alyce Waters sold 7,857 shares of the firm’s stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $146.21, for a total transaction of $1,148,771.97. Following the transaction, the insider now owns 83,011 shares in the company, valued at $12,137,038.31. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, insider Kathleen Alyce Waters sold 7,857 shares of the business’s stock in a transaction that occurred on Tuesday, August 13th. The shares were sold at an average price of $146.21, for a total value of $1,148,771.97. Following the completion of the transaction, the insider now directly owns 83,011 shares in the company, valued at approximately $12,137,038.31. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael David Staffieri sold 9,539 shares of DaVita stock in a transaction that occurred on Thursday, August 15th. The shares were sold at an average price of $150.03, for a total transaction of $1,431,136.17. Following the completion of the transaction, the chief operating officer now directly owns 241,945 shares in the company, valued at $36,299,008.35. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 173,482 shares of company stock valued at $27,387,069. 2.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. SG Americas Securities LLC boosted its stake in shares of DaVita by 196.9% in the 1st quarter. SG Americas Securities LLC now owns 29,733 shares of the company’s stock valued at $4,105,000 after purchasing an additional 19,719 shares in the last quarter. Bessemer Group Inc. boosted its position in DaVita by 2,335.6% in the first quarter. Bessemer Group Inc. now owns 10,741 shares of the company’s stock valued at $1,483,000 after buying an additional 10,300 shares in the last quarter. Forsta AP Fonden increased its holdings in shares of DaVita by 50.3% during the first quarter. Forsta AP Fonden now owns 23,600 shares of the company’s stock worth $3,258,000 after buying an additional 7,900 shares in the last quarter. Sei Investments Co. lifted its stake in shares of DaVita by 21.3% in the 1st quarter. Sei Investments Co. now owns 41,952 shares of the company’s stock valued at $5,790,000 after acquiring an additional 7,371 shares during the last quarter. Finally, BOKF NA lifted its stake in shares of DaVita by 286,550.0% in the 1st quarter. BOKF NA now owns 5,733 shares of the company’s stock valued at $790,000 after acquiring an additional 5,731 shares during the last quarter. Institutional investors own 90.12% of the company’s stock.

DaVita Price Performance

The business has a 50-day moving average of $158.40 and a two-hundred day moving average of $146.05. The company has a current ratio of 1.16, a quick ratio of 1.12 and a debt-to-equity ratio of 9.94. The firm has a market cap of $12.41 billion, a P/E ratio of 15.75, a price-to-earnings-growth ratio of 0.90 and a beta of 0.87.

About DaVita

DaVita Inc provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers.