Javier Rodriguez Executes Sell Order: Offloads $50.85M In DaVita Stock

A substantial insider sell was reported on August 22, by Javier Rodriguez, Chief Executive Officer at DaVita DVA, based on the recent SEC filing.

What Happened: Rodriguez's decision to sell 334,166 shares of DaVita was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $50,850,040.

DaVita shares are trading up 0.76% at $153.51 at the time of this writing on Friday morning.

Get to Know DaVita Better

DaVita is the largest provider of dialysis services in the United States, boasting market share that eclipses 35% when measured by both patients and clinics. The firm operates over 3,000 facilities worldwide, mostly in the us, and treats about 250,000 patients globally each year. Government payers dominate us dialysis reimbursement. DaVita receives about two thirds of us sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. While commercial insurers represent only about 10% of the us patients treated, they represent nearly all of the profits generated by DaVita in the us dialysis business.

Understanding the Numbers: DaVita's Finances

Revenue Growth: DaVita's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 6.21%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 32.77%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): DaVita's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.56.

Debt Management: DaVita's debt-to-equity ratio is notably higher than the industry average. With a ratio of 18.45, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 16.21 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.11, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): DaVita's EV/EBITDA ratio at 9.43 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Why Insider Transactions Are Important

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

The Insider's Guide to Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of DaVita's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.