DaVita (NYSE:DVA) Shares Gap Down – Should You Sell?

DaVita Inc. (NYSE:DVA) gapped down before the market opened on Wednesday . The stock had previously closed at $227.99, but opened at $205.25. DaVita shares last traded at $189.97, with a volume of 1,002,727 shares.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on DVA. Truist Financial lowered their target price on shares of DaVita from $250.00 to $215.00 and set a “hold” rating on the stock in a research note on Friday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $265.00 target price on shares of DaVita in a research report on Wednesday. Oppenheimer set a $220.00 price target on DaVita in a research report on Friday. TD Cowen upgraded DaVita from a “hold” rating to a “buy” rating and set a $220.00 price objective on the stock in a research note on Friday. Finally, Weiss Ratings raised DaVita from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $221.75.

DaVita Price Performance

The firm has a market capitalization of $11.36 billion, a price-to-earnings ratio of 14.71, a price-to-earnings-growth ratio of 0.63 and a beta of 0.88. The business has a 50 day moving average of $218.65 and a 200 day moving average of $176.48.

DaVita (NYSE:DVA) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $4.02 earnings per share for the quarter, topping analysts’ consensus estimates of $3.88 by $0.14. DaVita had a net margin of 6.05% and a negative return on equity of 217.63%. The firm had revenue of $3.55 billion for the quarter, compared to the consensus estimate of $3.50 billion. During the same quarter in the previous year, the company earned $2.95 earnings per share. The business’s revenue was up 5.2% compared to the same quarter last year. DaVita has set its FY 2026 guidance at 14.100-15.200 EPS. On average, sell-side analysts forecast that DaVita Inc. will post 14.7 EPS for the current fiscal year.

Insider Transactions at DaVita

In other DaVita news, insider Kathleen Alyce Waters sold 15,405 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $208.40, for a total transaction of $3,210,402.00. Following the completion of the transaction, the insider owned 109,194 shares in the company, valued at $22,756,029.60. This trade represents a 12.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On DaVita

A number of hedge funds have recently modified their holdings of the stock. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of DaVita during the 2nd quarter worth approximately $8,835,000. Beverly Hills Private Wealth LLC bought a new stake in DaVita in the second quarter valued at $263,000. Plato Investment Management Ltd acquired a new position in DaVita during the second quarter worth $87,000. Global Retirement Partners LLC bought a new position in shares of DaVita during the second quarter valued at $414,000. Finally, Fielder Capital Group LLC acquired a new stake in shares of DaVita in the 2nd quarter valued at $317,000. 90.12% of the stock is owned by institutional investors and hedge funds.

About DaVita

DaVita Inc (NYSE: DVA) is a leading provider of kidney care services, specializing in the management and operation of outpatient dialysis centers for patients with chronic kidney failure and end-stage renal disease. Headquartered in Denver, Colorado, the company offers a comprehensive suite of treatment modalities, including in-center hemodialysis, peritoneal dialysis, and home dialysis therapies. In addition to its core dialysis services, DaVita provides patient education, nutritional counseling, vascular access management and related laboratory services to support kidney health and overall patient well-being.

Since its formation in the mid-1990s through a clinical management services spin-off, DaVita has expanded both organically and through strategic partnerships and acquisitions.