DaVita (NYSE:DVA) Hits New 12-Month Low - Should You Sell?

Key Points

• DaVita Inc. shares hit a new 52-week low of $125.54, prompting analysts to question whether investors should sell.
• Several analysts have adjusted their target prices for DaVita, with Bank of America reducing theirs from $145.00 to $140.00 and setting an "underperform" rating.
• The company reported earnings per share (EPS) of $2.95 for the last quarter, surpassing analysts' expectations, but its consensus rating now stands at "Reduce".

DaVita Inc. (NYSE:DVA - Get Free Report) shares reached a new 52-week low during trading on Friday . The company traded as low as $125.55 and last traded at $125.54, with a volume of 25074 shares. The stock had previously closed at $126.38.

Wall Street Analyst Weigh In

A number of analysts have commented on DVA shares. Bank of America decreased their target price on DaVita from $145.00 to $140.00 and set an "underperform" rating on the stock in a research report on Wednesday, September 10th. Barclays decreased their target price on DaVita from $160.00 to $149.00 and set an "equal weight" rating on the stock in a research report on Thursday. Truist Financial set a $148.00 target price on DaVita in a research report on Friday, August 8th. Weiss Ratings reissued a "hold (c+)" rating on shares of DaVita in a report on Wednesday. Finally, Wall Street Zen raised DaVita from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. Four analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of $155.25.

DaVita Trading Down 1.4%

The firm has a market capitalization of $8.91 billion, a P/E ratio of 12.34, a price-to-earnings-growth ratio of 0.92 and a beta of 1.13. The business's 50 day simple moving average is $133.55 and its two-hundred day simple moving average is $139.51.

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

Insider Activity at DaVita

In other news, insider James O. Hearty sold 2,351 shares of the business's stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $150.00, for a total value of $352,650.00. Following the transaction, the insider owned 26,038 shares of the company's stock, valued at approximately $3,905,700. The trade was a 8.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On DaVita

Hedge funds have recently bought and sold shares of the business. Invesco Ltd. raised its stake in shares of DaVita by 3.4% in the first quarter. Invesco Ltd. now owns 1,642,947 shares of the company's stock valued at $251,322,000 after acquiring an additional 53,402 shares during the period. Northern Trust Corp raised its stake in shares of DaVita by 20.2% in the first quarter. Northern Trust Corp now owns 890,632 shares of the company's stock valued at $136,240,000 after acquiring an additional 149,858 shares during the period. Gates Capital Management Inc. raised its stake in shares of DaVita by 0.7% in the first quarter. Gates Capital Management Inc. now owns 722,205 shares of the company's stock valued at $110,476,000 after acquiring an additional 4,698 shares during the period. Amundi raised its stake in shares of DaVita by 16.0% in the first quarter. Amundi now owns 517,690 shares of the company's stock valued at $79,584,000 after acquiring an additional 71,304 shares during the period. Finally, Epoch Investment Partners Inc. raised its stake in shares of DaVita by 10.7% in the first quarter. Epoch Investment Partners Inc. now owns 407,921 shares of the company's stock valued at $62,400,000 after acquiring an additional 39,485 shares during the period. Hedge funds and other institutional investors own 90.12% of the company's stock.

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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