Sell Alert: Javier Rodriguez Cashes Out $6.26M In DaVita Stock

A substantial insider sell was reported on August 28, by Javier Rodriguez, Chief Executive Officer at DaVita DVA, based on the recent SEC filing.

What Happened: Rodriguez's decision to sell 40,119 shares of DaVita was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $6,255,891.

In the Thursday's morning session, DaVita's shares are currently trading at $154.56, experiencing a up of 0.64%.

Delving into DaVita's Background

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.

A Deep Dive into DaVita's Financials

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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Analyzing Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 32.77%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): DaVita's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.56.

Debt Management: DaVita's debt-to-equity ratio surpasses industry norms, standing at 18.45. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: DaVita's P/E ratio of 16.34 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.12 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 9.47, DaVita could be considered undervalued.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Why Insider Transactions Are Important

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Essential Transaction Codes Unveiled

When analyzing 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 signifies 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.