Traders Purchase Large Volume of DaVita Call Options (NYSE:DVA)

Key Points

• Investors bought 3,984 call options on DaVita — about a 140% increase versus the average daily call volume — signaling unusually strong bullish options activity.
• DaVita beat Q1 estimates, reporting $2.87 EPS (vs. $2.33 consensus) and $3.42B revenue (+6% YoY), and raised FY‑2026 adjusted EPS guidance to $14.10–$15.20.
• Shares jumped 20.1% to $188.64 on the news, but the company shows a negative return on equity (~-413%) and the analyst consensus remains a "Hold" with a $166.50 target.

DaVita Inc. (NYSE:DVA - Get Free Report) was the recipient of some unusual options trading on Wednesday. Investors bought 3,984 call options on the company. This is an increase of approximately 140% compared to the average daily volume of 1,662 call options.

Key DaVita News

Here are the key news stories impacting DaVita this week:

• Positive Sentiment: Q1 beat on both EPS and revenue — DaVita reported $2.87 EPS vs. ~ $2.33 consensus and revenue of $3.42B (+6% YoY), topping estimates and signaling healthy top-line momentum. Read More.
• Positive Sentiment: Company raised annual profit guidance — Management lifted FY-2026 adjusted profit forecast after the quarter, citing steady/strong demand for dialysis services, which supports forward earnings visibility. Read More.
• Positive Sentiment: Formal guidance range provided — DaVita set FY-2026 EPS guidance of $14.10–$15.20, which overlaps consensus and gives investors a clearer line of sight to full-year profits. Read More.
• Neutral Sentiment: Earnings-call detail and strategy color — The Q1 earnings call transcript outlines drivers (patient volumes, pricing, clinical execution) and puts detail around capital allocation and growth initiatives; useful for modeling but few immediate surprises. Read More.
• Neutral Sentiment: Analyst/earnings snapshots reinforce beat — Multiple outlets (Zacks, Yahoo, MSN) confirm the beat and summarize results and guidance; these help consolidate the street view but add limited new information. Read More.
• Negative Sentiment: Balance-sheet/metric flags — Reports note an unusual negative return on equity (-413%) and a modest net margin (~5.5%), metrics that may reflect heavy share repurchases or other capital-structure effects and could concern some investors focused on returns and profitability quality. Read More.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Root Financial Partners LLC lifted its holdings in DaVita by 128.0% during the first quarter. Root Financial Partners LLC now owns 187 shares of the company's stock worth $29,000 after acquiring an additional 105 shares during the period. Elevation Wealth Partners LLC lifted its holdings in DaVita by 147.3% during the fourth quarter. Elevation Wealth Partners LLC now owns 277 shares of the company's stock worth $31,000 after acquiring an additional 165 shares during the period. Caitlin John LLC bought a new stake in DaVita during the fourth quarter worth $34,000. Sankala Group LLC bought a new stake in DaVita during the fourth quarter worth $39,000. Finally, Canada Pension Plan Investment Board bought a new stake in DaVita during the second quarter worth $43,000. Hedge funds and other institutional investors own 90.12% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have commented on DVA. Zacks Research cut DaVita from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 6th. Barclays raised their price objective on DaVita from $143.00 to $158.00 and gave the company an "equal weight" rating in a research note on Tuesday, February 3rd. Truist Financial set a $158.00 price objective on DaVita in a research note on Thursday, February 5th. Wall Street Zen raised DaVita from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st. Finally, Deutsche Bank Aktiengesellschaft raised DaVita from a "hold" rating to a "buy" rating and raised their price objective for the company from $126.00 to $220.00 in a research note on Wednesday. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $166.50.

DaVita Trading Up 20.1%

Shares of NYSE:DVA traded up $31.60 during mid-day trading on Wednesday, hitting $188.64. 1,041,016 shares of the company traded hands, compared to its average volume of 982,818. The stock has a market cap of $12.60 billion, a P/E ratio of 18.99, a P/E/G ratio of 0.54 and a beta of 0.84. DaVita has a 12-month low of $101.00 and a 12-month high of $190.16. The stock has a 50-day moving average price of $151.30 and a two-hundred day moving average price of $131.73.

DaVita (NYSE:DVA - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $2.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.33 by $0.54. The company had revenue of $3.42 billion for the quarter, compared to analysts' expectations of $3.36 billion. DaVita had a negative return on equity of 413.18% and a net margin of 5.47%.DaVita's quarterly revenue was up 6.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.00 earnings per share. DaVita has set its FY 2026 guidance at 14.100-15.200 EPS. As a group, analysts expect that DaVita will post 14.16 earnings per share for the current year.

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.

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