Davita (NYSE:DVA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “Year to date, Davita had a favorable run on the bourse, outperforming the broader industry. DaVita’s continuous improvement in Kidney care is commendable. The company’s efforts to control expenses hold promise. A compelling inorganic growth story supported by its strong financial position is another positive. The restructuring initiative for the DMG segment is likely to yield annualized savings of around $40 million every year, starting 2018. On the flipside, sluggishness in the dialysis and lab businesses is a major headwind for DaVita. The company is facing the adverse effects of the tumult in the U.S. medical space and rise in Medicare insurance costs, which might shorten the company’s customer base. However, strong growth in patient services is likely to boost the company’s growth trajectory.”
Several other brokerages have also recently commented on DVA. JPMorgan Chase & Co. increased their target price on shares of Davita from $4.90 to $84.00 and gave the stock a “strong-buy” rating in a report on Thursday, December 7th. Citigroup upgraded shares of Davita from a “neutral” rating to a “buy” rating and increased their target price for the stock from $67.71 to $82.00 in a report on Monday, December 11th. Robert W. Baird restated a “hold” rating and set a $63.00 target price on shares of Davita in a report on Friday, November 10th. SunTrust Banks set a $70.00 target price on shares of Davita and gave the stock a “hold” rating in a report on Thursday, December 7th. Finally, Raymond James Financial upgraded shares of Davita from an “outperform” rating to a “strong-buy” rating and increased their target price for the stock from $65.00 to $84.00 in a report on Thursday, December 7th. Two analysts have rated the stock with a sell rating, five have given a hold rating, four have issued a buy rating and two have issued a strong buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $78.60.
In other Davita news, insider James K. Hilger sold 3,572 shares of the stock in a transaction on Tuesday, January 16th. The shares were sold at an average price of $78.95, for a total value of $282,009.40. Following the completion of the sale, the insider now owns 33,649 shares in the company, valued at $2,656,588.55. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Charles Berg sold 7,048 shares of the stock in a transaction on Monday, December 11th. The shares were sold at an average price of $69.24, for a total transaction of $488,003.52. Following the completion of the sale, the insider now owns 5,359 shares of the company’s stock, valued at approximately $371,057.16. The disclosure for this sale can be found here. In the last quarter, insiders sold 121,509 shares of company stock valued at $8,310,388. Corporate insiders own 2.00% of the company’s stock.
Hedge funds have recently made changes to their positions in the business. Rhumbline Advisers lifted its stake in shares of Davita by 4.4% during the 3rd quarter. Rhumbline Advisers now owns 321,155 shares of the company’s stock worth $19,073,000 after buying an additional 13,471 shares during the last quarter. Founders Capital Management LLC lifted its stake in shares of Davita by 2.3% during the 3rd quarter. Founders Capital Management LLC now owns 95,939 shares of the company’s stock worth $5,698,000 after buying an additional 2,115 shares during the last quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH lifted its stake in shares of Davita by 1,987.3% during the 3rd quarter. Meag Munich Ergo Kapitalanlagegesellschaft MBH now owns 41,746 shares of the company’s stock worth $2,448,000 after buying an additional 39,746 shares during the last quarter. Speece Thorson Capital Group Inc. lifted its stake in shares of Davita by 14.5% during the 3rd quarter. Speece Thorson Capital Group Inc. now owns 321,182 shares of the company’s stock worth $19,075,000 after buying an additional 40,667 shares during the last quarter. Finally, Eqis Capital Management Inc. lifted its stake in shares of Davita by 62.5% during the 3rd quarter. Eqis Capital Management Inc. now owns 7,473 shares of the company’s stock worth $444,000 after buying an additional 2,873 shares during the last quarter. Hedge funds and other institutional investors own 84.45% of the company’s stock.
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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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