Davita (NYSE:DVA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “Year to date, Davita had a favorable run on the bourse, outperforming the broader industry. DaVita’s continuous improvement in Kidney care is commendable. The company’s efforts to control expenses hold promise. A compelling inorganic growth story supported by its strong financial position is another positive. The restructuring initiative for the DMG segment is likely to yield annualized savings of around $40 million every year, starting 2018. On the flipside, sluggishness in the dialysis and lab businesses is a major headwind for DaVita. The company is facing the adverse effects of the tumult in the U.S. medical space and rise in Medicare insurance costs, which might shorten the company’s customer base. However, strong growth in patient services is likely to boost the company’s growth trajectory.”
Several other research analysts have also weighed in on the stock. Wolfe Research raised shares of Davita from a “market perform” rating to an “outperform” rating in a research note on Monday, October 23rd. Bank of America reduced their price objective on shares of Davita from $75.00 to $66.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 8th. Raymond James Financial raised shares of Davita from an “outperform” rating to a “strong-buy” rating and lifted their price objective for the stock from $65.00 to $84.00 in a research note on Thursday, December 7th. Royal Bank of Canada reduced their price objective on shares of Davita from $64.00 to $60.00 and set a “sector perform” rating on the stock in a research note on Wednesday, November 8th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Davita from $4.90 to $84.00 and gave the stock a “strong-buy” rating in a research note on Thursday, December 7th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating, four have assigned a buy rating and two have given a strong buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of $79.30.
Davita (NYSE:DVA) last issued its earnings results on Tuesday, February 13th. The company reported $0.92 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.02). Davita had a net margin of 4.65% and a return on equity of 12.67%. The business had revenue of $2.78 billion during the quarter, compared to the consensus estimate of $3.90 billion. During the same period last year, the business posted $0.98 EPS. sell-side analysts expect that Davita will post 3.99 earnings per share for the current fiscal year.
In other Davita news, insider James K. Hilger sold 5,608 shares of the firm’s stock in a transaction that occurred on Thursday, December 7th. The shares were sold at an average price of $69.46, for a total transaction of $389,531.68. Following the sale, the insider now directly owns 47,649 shares in the company, valued at approximately $3,309,699.54. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Javier Rodriguez sold 22,532 shares of the firm’s stock in a transaction that occurred on Thursday, December 7th. The stock was sold at an average price of $67.48, for a total transaction of $1,520,459.36. Following the sale, the chief executive officer now owns 210,317 shares in the company, valued at $14,192,191.16. The disclosure for this sale can be found here. Insiders have sold a total of 121,509 shares of company stock worth $8,310,388 over the last 90 days. Corporate insiders own 2.10% of the company’s stock.
Hedge funds have recently made changes to their positions in the business. Rhumbline Advisers raised its holdings in Davita by 4.4% during the 3rd quarter. Rhumbline Advisers now owns 321,155 shares of the company’s stock worth $19,073,000 after buying an additional 13,471 shares during the period. Founders Capital Management LLC raised its holdings in Davita by 2.3% during the 3rd quarter. Founders Capital Management LLC now owns 95,939 shares of the company’s stock worth $5,698,000 after buying an additional 2,115 shares during the period. Meag Munich Ergo Kapitalanlagegesellschaft MBH raised its holdings in Davita by 1,987.3% during the 3rd quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH now owns 41,746 shares of the company’s stock worth $2,448,000 after buying an additional 39,746 shares during the period. Speece Thorson Capital Group Inc. raised its holdings in Davita by 14.5% during the 3rd quarter. Speece Thorson Capital Group Inc. now owns 321,182 shares of the company’s stock worth $19,075,000 after buying an additional 40,667 shares during the period. Finally, Eqis Capital Management Inc. raised its holdings in Davita by 62.5% during the 3rd quarter. Eqis Capital Management Inc. now owns 7,473 shares of the company’s stock worth $444,000 after buying an additional 2,873 shares during the period. Hedge funds and other institutional investors own 84.45% of the company’s stock.
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DaVita Inc, formerly DaVita HealthCare Partners Inc, operates two divisions: DaVita Kidney Care (Kidney Care) and DaVita Medical Group (DMG). The Kidney Care division consists of its the United States dialysis and related lab services, its ancillary services and strategic initiatives, including its international operations, and its corporate administrative support.
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