Bank of America Issues Pessimistic Forecast for DaVita (NYSE:DVA) Stock Price

Key Points

• Bank of America has lowered its target price for DaVita (NYSE:DVA) from $145.00 to $140.00, maintaining an "underperform" rating on the stock.
• DaVita experienced a 1.8% decline in trading, reaching a price of $134.27, with a current market cap of $9.60 billion.
• The company reported an earnings per share of $2.95, exceeding analysts' estimates, and has set a forecast for FY 2025 EPS in the range of 10.200-11.300.

DaVita (NYSE:DVA - Get Free Report) had its target price decreased by stock analysts at Bank of America from $145.00 to $140.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has an "underperform" rating on the stock. Bank of America's price target points to a potential upside of 4.27% from the stock's current price.

DVA has been the subject of a number of other reports. Truist Financial set a $148.00 price target on shares of DaVita in a report on Friday, August 8th. Wall Street Zen upgraded shares of DaVita from a "hold" rating to a "buy" rating in a report on Friday, August 22nd. Finally, Barclays reduced their price objective on shares of DaVita from $169.00 to $160.00 and set an "equal weight" rating for the company in a report on Thursday, August 7th. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $158.00.

DaVita Trading Down 1.8%

NYSE DVA traded down $2.44 during mid-day trading on Wednesday, reaching $134.27. 145,232 shares of the stock were exchanged, compared to its average volume of 849,252. DaVita has a one year low of $126.07 and a one year high of $179.60. The stock has a 50 day simple moving average of $139.04 and a 200-day simple moving average of $141.73. The stock has a market cap of $9.60 billion, a P/E ratio of 13.22, a P/E/G ratio of 0.96 and a beta of 1.13. The company has a debt-to-equity ratio of 23.18, a current ratio of 1.39 and a quick ratio of 1.34.

DaVita (NYSE:DVA - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $2.95 earnings per share for the quarter, topping analysts' consensus estimates of $2.70 by $0.25. The business had revenue of $3.38 billion during the quarter, compared to the consensus estimate of $3.36 billion. DaVita had a net margin of 6.35% and a return on equity of 369.39%. DaVita's quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the firm earned $2.00 earnings per share. DaVita has set its FY 2025 guidance at 10.200-11.300 EPS. On average, analysts anticipate that DaVita will post 10.76 EPS for the current year.

Insider Activity

In other news, insider James O. Hearty sold 2,351 shares of the stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $150.00, for a total value of $352,650.00. Following the completion of the transaction, the insider owned 26,038 shares of the company's stock, valued at approximately $3,905,700. This represents a 8.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On DaVita

Several hedge funds have recently modified their holdings of the stock. UMB Bank n.a. grew its stake in shares of DaVita by 65.5% in the 1st quarter. UMB Bank n.a. now owns 192 shares of the company's stock valued at $29,000 after buying an additional 76 shares in the last quarter. National Pension Service raised its stake in shares of DaVita by 74.3% in the 1st quarter. National Pension Service now owns 197 shares of the company's stock valued at $30,000 after acquiring an additional 84 shares in the last quarter. Copia Wealth Management acquired a new stake in DaVita in the 4th quarter valued at approximately $30,000. Hantz Financial Services Inc. grew its holdings in DaVita by 48.1% in the 2nd quarter. Hantz Financial Services Inc. now owns 231 shares of the company's stock valued at $33,000 after buying an additional 75 shares during the last quarter. Finally, Y.D. More Investments Ltd acquired a new stake in DaVita in the 1st quarter valued at approximately $35,000. 90.12% of the stock is owned by hedge funds and other institutional investors.

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.

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