DaVita (NYSE:DVA) Shares Gap Down Following Weak Earnings

Shares of DaVita Inc. (NYSE:DVA - Get Free Report) 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 analysts' consensus estimates of $2.76 by ($0.17). DaVita had a net margin of 6.86% and a return on equity of 77.00%. The business had revenue of $3.26 billion during the quarter, compared to analyst estimates of $3.25 billion. During the same period in the prior year, the firm earned $2.85 earnings per share. The firm's revenue for the quarter was up 4.6% compared to the same quarter last year.

Analyst Upgrades and Downgrades

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

Insider Activity at DaVita

In other news, CEO Javier Rodriguez sold 32,176 shares of DaVita stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $155.93, for a total transaction of $5,017,203.68. Following the completion of the sale, the chief executive officer now owns 905,659 shares in the company, valued at approximately $141,219,407.87. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In other news, insider Kathleen Alyce Waters sold 7,857 shares of the firm's stock in a transaction dated 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 directly owns 83,011 shares of the company's stock, valued at approximately $12,137,038.31. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Javier Rodriguez sold 32,176 shares of the firm's stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $155.93, for a total value of $5,017,203.68. Following the transaction, the chief executive officer now owns 905,659 shares in the company, valued at approximately $141,219,407.87. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 173,482 shares of company stock valued at $27,387,069. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On DaVita

Several hedge funds and other institutional investors have recently modified their holdings of the company. Blue Trust Inc. lifted its holdings in DaVita by 58.6% in the 2nd quarter. Blue Trust Inc. now owns 211 shares of the company's stock worth $29,000 after buying an additional 78 shares during the period. Family Firm Inc. purchased a new stake in DaVita in the second quarter worth about $43,000. Versant Capital Management Inc grew its holdings in shares of DaVita by 90.6% during the 2nd quarter. Versant Capital Management Inc now owns 326 shares of the company's stock worth $45,000 after acquiring an additional 155 shares during the period. Friedenthal Financial bought a new stake in shares of DaVita during the second quarter valued at approximately $48,000. Finally, Point72 Hong Kong Ltd purchased a new stake in DaVita in the second quarter worth $68,000. 90.12% of the stock is owned by institutional investors.

DaVita Price Performance

The company has a debt-to-equity ratio of 9.94, a current ratio of 1.16 and a quick ratio of 1.12. The firm has a 50-day simple moving average of $158.40 and a 200 day simple moving average of $146.05. The firm has a market cap of $11.85 billion, a PE ratio of 15.67, a price-to-earnings-growth ratio of 0.90 and a beta of 0.87.

DaVita Company Profile

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.