DaVita (NYSE:DVA) Shares Gap Down - Time to Sell?

Key Points

• DaVita shares fell sharply: The stock opened at $175 after previously closing at $193.31, down roughly 7%, amid investor concerns following its quarterly results.
• Third-quarter results beat expectations: Revenue rose 4.6% year over year to $3.58 billion, while adjusted EPS increased to $3.82 from $2.51 and exceeded the $3.57 consensus estimate. However, operating profit declined slightly and operating cash flow fell.
• Risks outweighed the earnings beat: A roughly $62 million charge tied to China operations and a new investor investigation pressured sentiment. Analysts still maintain a “Moderate Buy” consensus, with an average price target of $233.43.

DaVita Inc. (NYSE:DVA - Get Free Report)'s share price gapped down prior to trading on Friday. The stock had previously closed at $193.31, but opened at $175.00. DaVita shares last traded at $178.84, with a volume of 362,231 shares trading hands.

Key DaVita News

Here are the key news stories impacting DaVita this week:

• Positive Sentiment: DaVita reported third-quarter revenue of $3.578 billion, up 4.6% year over year and ahead of the approximately $3.52 billion analyst estimate. Adjusted earnings per share were $3.82, above the $3.57 consensus, while earnings increased substantially from $2.51 a year earlier. DaVita Q3 revenue report
• Positive Sentiment: Net income attributable to common shareholders rose 48.3% year over year to $222.9 million. The results indicate continued revenue growth and improved earnings power, supporting the company’s full-year outlook and valuation case. DaVita Q3 2026 earnings summary
• Neutral Sentiment: Cash flow from operations declined to $518.8 million, while capital expenditures totaled $159.5 million. Operating profit also slipped 1.3% year over year to $499.3 million, suggesting that revenue growth has not fully translated into stronger underlying operations. DaVita third-quarter 2026 results
• Negative Sentiment: A roughly $62 million charge related to DaVita’s China operations overshadowed the earnings beat and raised concerns about international execution and near-term profitability. This was the primary reason investors sold the stock following the report. DaVita Q3 earnings and China charge
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of DaVita investors. Although the announcement does not establish wrongdoing, the legal overhang may add uncertainty and weigh on investor sentiment. Pomerantz DaVita investor investigation

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on DVA. Truist Financial cut their price objective on DaVita from $250.00 to $215.00 and set a "hold" rating for the company in a research report on Friday, August 7th. Raymond James Financial set a $220.00 target price on shares of DaVita in a research report on Friday, August 7th. Oppenheimer set a $220.00 target price on shares of DaVita in a research note on Friday, August 7th. UBS Group lifted their price target on shares of DaVita from $235.00 to $270.00 and gave the company a "buy" rating in a research report on Friday, July 10th. Finally, Zacks Research cut shares of DaVita from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, DaVita currently has a consensus rating of "Moderate Buy" and an average price target of $233.43.

DaVita Stock Down 7.0%

The stock has a market capitalization of $11.47 billion, a PE ratio of 14.72, a price-to-earnings-growth ratio of 0.48 and a beta of 0.80. The stock has a fifty day moving average of $181.13 and a 200-day moving average of $176.11.

DaVita (NYSE:DVA - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $3.82 earnings per share for the quarter, topping the consensus estimate of $3.57 by $0.25. The company had revenue of $3.58 billion for the quarter, compared to the consensus estimate of $3.52 billion. DaVita had a negative return on equity of 217.63% and a net margin of 6.05%. DaVita's revenue was up 4.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.51 EPS. Equities research analysts expect that DaVita Inc. will post 14.57 EPS for the current year.

Institutional Investors Weigh In On DaVita

Large investors have recently modified their holdings of the company. Berkshire Hathaway Inc purchased a new stake in shares of DaVita during the second quarter worth approximately $6,425,269,000. BlackRock Inc. acquired a new stake in shares of DaVita during the second quarter worth $547,520,000. Dimensional Fund Advisors LP grew its position in DaVita by 5.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,145,436 shares of the company's stock valued at $176,037,000 after buying an additional 56,336 shares during the last quarter. Bank of America Corp DE purchased a new position in DaVita in the 2nd quarter valued at $145,057,000. Finally, Bank of New York Mellon Corp acquired a new position in DaVita in the 2nd quarter valued at $101,127,000. 90.12% of the stock is owned by hedge funds and other institutional investors.

About DaVita

DaVita Inc NYSE: DVA is a health care services company focused on kidney care. Through its DaVita Kidney Care business, the company provides outpatient dialysis treatments for people with chronic kidney failure, including in-center hemodialysis, home dialysis and related clinical support services.

DaVita also offers integrated kidney care programs intended to support patients across the stages of chronic kidney disease. Its services may include care coordination, disease management, education, transplant support and other services designed to improve clinical outcomes and help manage the needs of patients with complex kidney conditions.

The company operates a network of dialysis centers and related facilities in the United States and serves patients in select international markets.

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