DaVita Inc . (NYSE:DVA) has reported that Joel Ackerman, the company's Chief Financial Officer and Treasurer, has sold a significant amount of company stock. According to the latest SEC filings, Ackerman sold a total of 68,769 shares of DaVita Inc. common stock over two separate transactions.
On August 27, 2024, Ackerman sold 64,029 shares at a weighted average price of $155.0639, with the price range for these shares being $155.00 to $155.84. The following day, on August 28, he sold an additional 4,740 shares at a weighted average price of $155.0179, with a price range of $155.00 to $155.12. The total value of the shares sold across both transactions amounted to $10,663,371.
Investors often keep a close eye on insider transactions like these, as they can provide insights into executives' perspectives on the company's current valuation and future prospects. The sale by a high-ranking executive such as Ackerman may be of particular interest to current and potential shareholders.
Following these transactions, Ackerman's remaining holdings in DaVita Inc. include 111,481 shares after the sale on August 27 and 106,741 shares after the sale on August 28. These post-transaction ownership figures reflect his direct stake in the company.
DaVita Inc. is a health care company based in Denver, Colorado, specializing in a variety of services, including kidney care and dialysis. The company has been through several name changes over the years, with its most recent former name being DaVita Healthcare Partners Inc.
As is customary, the SEC filing includes a footnote indicating that Ackerman is prepared to provide full information regarding the number of shares sold at each separate price upon request by the Commission staff, the Issuer, or a security holder of the Issuer.
Investors who follow DaVita Inc. will likely consider this recent sale by the CFO as they evaluate their positions in the company.
In other recent news, DaVita Inc., a leading provider of kidney care services, has been the subject of revised earnings estimates from Truist Securities. Following DaVita's impressive second-quarter results and updated full-year 2024 guidance, Truist has increased its price target for the company from $150 to $165, while maintaining a Hold rating. The firm now expects DaVita to achieve adjusted earnings per share (EPS) of $9.72 in 2024, up from the previous estimate of $9.46, and a further increase to an adjusted EPS of $11.06 in 2025.
In more updates, DaVita reported a strong financial performance for the second quarter of 2024, surpassing expectations with an adjusted operating income of $506 million and adjusted EPS of $2.59. The company has raised its adjusted operating income guidance for 2024 and is actively pursuing growth through international acquisitions and share repurchases. Despite facing challenges such as increased health benefit costs and elevated mortality rates, DaVita remains confident in its sustainable margins and future prospects.
These recent developments provide a clearer picture for shareholders regarding DaVita's expected performance in the near term. The company's performance in the coming quarters will be a key factor in determining whether the stock can reach or surpass the new price target set by Truist Securities.
InvestingPro Insights
DaVita Inc. (NYSE:DVA) has seen its Chief Financial Officer, Joel Ackerman, offload a substantial portion of his holdings, which may draw investor attention to the company's financial health and future outlook. In light of this development, several metrics and InvestingPro Tips can provide a broader context for evaluating DaVita's current market position.
InvestingPro Data highlights that DaVita has a market capitalization of $12.89 billion, underscoring its significant presence in the healthcare sector. The company's P/E ratio stands at 15.92, suggesting a reasonable valuation when compared to near-term earnings growth. This is further supported by an adjusted P/E ratio for the last twelve months as of Q2 2024 at 14.91, indicating a potentially attractive entry point for value investors.
Moreover, DaVita's Price/Book ratio as of the same period is 20.36, which could be considered high, reflecting the market's valuation of the company's net assets. This metric, combined with the fact that DaVita is trading near its 52-week high, with a price 97.95% of that peak, suggests a strong market confidence in the company's performance and stability.
An InvestingPro Tip that stands out is that management has been aggressively buying back shares, which is often a sign of confidence in the company's prospects and a commitment to enhancing shareholder value. Additionally, DaVita's stock generally trades with low price volatility, which could appeal to risk-averse investors looking for steady performance.
For those seeking more in-depth analysis and additional insights, there are 12 more InvestingPro Tips available for DaVita Inc. at https://www.investing.com/pro/DVA. These tips could further inform investors' decisions, especially in the context of the CFO's recent stock sale.
Considering these metrics and tips can help investors form a more nuanced view of DaVita's financial standing and future potential, complementing the information provided by insider trading activity.
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