Insider Unloading: Javier Rodriguez Sells $33.90M Worth Of DaVita Shares

On December 18, a recent SEC filing unveiled that Javier Rodriguez, Chief Executive Officer at DaVita DVA made an insider sell.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Rodriguez sold 311,581 shares of DaVita. The total transaction amounted to $33,900,012.

DaVita's shares are actively trading at $106.45, experiencing a down of 0.45% during Tuesday's morning session.

About DaVita

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 U.S., and treats over 240,000 patients globally each year. Government payers dominate U.S. dialysis reimbursement. DaVita receives about two thirds of U.S. sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. However, while commercial insurers represented only about 10% of the U.S. patients treated, they represent nearly all of the profits generated by DaVita in the U.S. dialysis business.

DaVita: Delving into Financials

Revenue Growth: DaVita's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 5.85%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company excels with a remarkable gross margin of 33.77%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.7, DaVita showcases strong earnings per share.

Debt Management: DaVita's debt-to-equity ratio surpasses industry norms, standing at 9.28. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 16.6, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.83 is lower than the industry average, implying a discounted valuation for DaVita's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): DaVita's EV/EBITDA ratio, lower than industry averages at 9.36, indicates attractively priced shares.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Deciphering Transaction Codes in Insider Filings

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.