DaVita Chief Operating Officer Trades $6.32M In Company Stock

DAVID MICHAEL STAFFIERI, Chief Operating Officer at DaVita DVA, executed a substantial insider sell on August 19, according to an SEC filing.

What Happened: STAFFIERI's decision to sell 42,119 shares of DaVita was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $6,323,507.

The latest market snapshot at Tuesday morning reveals DaVita shares down by 1.7%, trading at $149.59.

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 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.

DaVita's Economic Impact: An Analysis

Positive Revenue Trend: Examining DaVita's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.21% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Navigating Financial Profits:

• Gross Margin: The company excels with a remarkable gross margin of 32.77%, indicating superior cost efficiency and profitability compared to its industry 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 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.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: DaVita's P/E ratio of 16.19 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.11, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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 9.42, indicates attractively priced shares.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Uncovering the Importance of Insider Activity

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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.