DaVita Inc (NYSE: DVA)’s stock price has decreased by -1.86 compared to its previous closing price of 157.28. However, the company has seen a 2.65% increase in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-14 that Despite operational success and growth potential, I rate DaVita Inc. a “Hold” due to its high debt, lack of dividend, and current overvaluation. DaVita excels in dialysis services but faces significant risks from debt servicing costs, macroeconomic factors, and potential policy changes. The company’s recent financial performance, including a decline in net income and increased debt costs, underscores my conservative valuation approach.
Is It Worth Investing in DaVita Inc (NYSE: DVA) Right Now?
DaVita Inc (NYSE: DVA) has a price-to-earnings ratio of 16.64x that is above its average ratio. Additionally, the 36-month beta value for DVA is 0.88. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 2 rating it as “overweight,” 8 rating it as “hold,” and 2 rating it as “sell.”
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The public float for DVA is 78.34M and currently, short sellers hold a 5.46% ratio of that float. The average trading volume of DVA on November 15, 2024 was 777.08K shares.
DVA’s Market Performance
DVA’s stock has seen a 2.65% increase for the week, with a -6.35% drop in the past month and a 2.70% gain in the past quarter. The volatility ratio for the week is 2.61%, and the volatility levels for the past 30 days are at 2.83% for DaVita Inc The simple moving average for the last 20 days is 0.59% for DVA stock, with a simple moving average of 8.83% for the last 200 days.
Analysts’ Opinion of DVA
Many brokerage firms have already submitted their reports for DVA stocks, with Barclays repeating the rating for DVA by listing it as a “Equal Weight.” The predicted price for DVA in the upcoming period, according to Barclays is $133 based on the research report published on March 06, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see DVA reach a price target of $142, previously predicting the price at $100. The rating they have provided for DVA stocks is “Buy” according to the report published on August 07th, 2023.
Deutsche Bank gave a rating of “Hold” to DVA, setting the target price at $72 in the report published on November 01st of the previous year.
DVA Trading at -2.04% from the 50-Day Moving Average
After a stumble in the market that brought DVA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.39% of loss for the given period.
Volatility was left at 2.83%, however, over the last 30 days, the volatility rate increased by 2.61%, as shares sank -3.59% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.78% upper at present.
During the last 5 trading sessions, DVA rose by +2.65%, which changed the moving average for the period of 200-days by +42.71% in comparison to the 20-day moving average, which settled at $153.45. In addition, DaVita Inc saw 47.35% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DVA starting from Michael Staffieri, who proposed sale 7,459 shares at the price of $155.94 back on Nov 14 ’24. After this action, Michael Staffieri now owns shares of DaVita Inc, valued at $1,163,167 using the latest closing price.
Rodriguez Javier, the Chief Executive Officer of DaVita Inc, sale 50,000 shares at $165.05 during a trade that took place back on Sep 16 ’24, which means that Rodriguez Javier is holding 837,835 shares at $8,252,515 based on the most recent closing price.
Stock Fundamentals for DVA
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.3 for the gross margin
The net margin for DaVita Inc stands at 0.07. The total capital return value is set at 0.13. Equity return is now at value 104.38, with 4.81 for asset returns.
Based on DaVita Inc (DVA), the company’s capital structure generated 0.96 points at debt to capital in total, while cash flow to debt ratio is standing at 0.21. The debt to equity ratio resting at 24.71. The interest coverage ratio of the stock is 4.51.
Currently, EBITDA for the company is 2.35 billion with net debt to EBITDA at 4.29. When we switch over and look at the enterprise to sales, we see a ratio of 1.88. The receivables turnover for the company is 4.81for trailing twelve months and the total asset turnover is 0.72. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.37.
Conclusion
In conclusion, DaVita Inc (DVA) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
