Zacks Investment Research Lowers DaVita HealthCare Partners Inc. (DVA) to Sell
DaVita HealthCare Partners Inc. (NYSE:DVA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
According to Zacks, “Over the past one year, DaVita has underperformed the broader industry in terms of price. DaVita ended second-quarter fiscal 2017 on a mixed note wherein adjusted earnings missed the Zacks Consensus Estimate while revenues beat the same. Davita’s revenues in the second quarter reflected significant year-over-year growth on the back of strong patient services. The company saw solid improvement in Kidney care in the quarter. DaVita also made efforts to control expenses in the second quarter. The company’s strength basically lies in its enhanced service offerings. A compelling inorganic growth story supported by its strong financial position is another positive. However, DaVita remains challenged by high debt levels, adverse effects of healthcare reforms, rise in Medicare costs, and an increase in Medicare Advantage (MA) beneficiaries. Also, MA rate cuts are likely to hurt the bottom line in the near future.”
Other research analysts have also recently issued research reports about the company. Jefferies Group LLC cut DaVita HealthCare Partners from a “buy” rating to a “hold” rating and upped their target price for the company from $64.89 to $70.00 in a research note on Monday, June 26th. BidaskClub cut DaVita HealthCare Partners from a “hold” rating to a “sell” rating in a research note on Saturday, July 8th. J P Morgan Chase & Co cut DaVita HealthCare Partners from a “neutral” rating to an “underweight” rating in a research note on Monday. TheStreet cut DaVita HealthCare Partners from a “b” rating to a “c+” rating in a research note on Wednesday, August 2nd. Finally, Royal Bank Of Canada reaffirmed a “hold” rating and set a $64.00 target price on shares of DaVita HealthCare Partners in a research note on Wednesday, September 6th. Four investment analysts have rated the stock with a sell rating, six have assigned a hold rating and one has issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average price target of $66.50.
DaVita HealthCare Partners (NYSE:DVA) traded up 0.911% during trading on Wednesday, reaching $54.815. The company had a trading volume of 3,447,728 shares. The company has a market capitalization of $10.48 billion, a PE ratio of 8.420 and a beta of 0.90. The firm’s 50 day moving average is $58.47 and its 200 day moving average is $63.13. DaVita HealthCare Partners has a one year low of $53.58 and a one year high of $70.16.
DaVita HealthCare Partners (NYSE:DVA) last issued its quarterly earnings data on Tuesday, August 1st. The company reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.90 by $0.02. DaVita HealthCare Partners had a return on equity of 14.02% and a net margin of 8.68%. The business had revenue of $3.88 billion for the quarter, compared to the consensus estimate of $3.82 billion. During the same period in the prior year, the business posted $1.01 earnings per share. The company’s quarterly revenue was up 4.3% compared to the same quarter last year. On average, equities research analysts predict that DaVita HealthCare Partners will post $3.59 earnings per share for the current year.
DaVita HealthCare Partners declared that its Board of Directors has initiated a stock repurchase program on Tuesday, October 10th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its shares are undervalued.
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A number of large investors have recently made changes to their positions in DVA. Ameriprise Financial Inc. grew its stake in DaVita HealthCare Partners by 29.6% in the first quarter. Ameriprise Financial Inc. now owns 150,261 shares of the company’s stock worth $10,213,000 after purchasing an additional 34,341 shares in the last quarter. JPMorgan Chase & Co. grew its stake in DaVita HealthCare Partners by 260.4% in the first quarter. JPMorgan Chase & Co. now owns 185,912 shares of the company’s stock worth $12,636,000 after purchasing an additional 134,327 shares in the last quarter. Victory Capital Management Inc. grew its stake in DaVita HealthCare Partners by 622.6% in the first quarter. Victory Capital Management Inc. now owns 22,178 shares of the company’s stock worth $1,507,000 after purchasing an additional 19,109 shares in the last quarter. OppenheimerFunds Inc. grew its stake in DaVita HealthCare Partners by 4.8% in the first quarter. OppenheimerFunds Inc. now owns 26,791 shares of the company’s stock worth $1,821,000 after purchasing an additional 1,228 shares in the last quarter. Finally, Teachers Advisors LLC grew its stake in DaVita HealthCare Partners by 2.0% in the first quarter. Teachers Advisors LLC now owns 316,559 shares of the company’s stock worth $21,517,000 after purchasing an additional 6,242 shares in the last quarter. 83.27% of the stock is currently owned by institutional investors.
About DaVita HealthCare Partners
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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