Javier Rodriguez, Chief Executive Officer at DaVita DVA, reported an insider sell on September 17, according to a new SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Rodriguez sold 59,881 shares of DaVita. The total transaction value is $9,861,636.

Tracking the Wednesday’s morning session, DaVita shares are trading at $161.38, showing a down of 1.73%.

All You Need to Know 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.

Breaking Down DaVita’s Financial Performance

Revenue Growth: DaVita’s remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 6.21%. This signifies a substantial increase in the company’s 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.

Exploring Profitability:

• Gross Margin: Achieving a high gross margin of 32.77%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): DaVita’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 2.56.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 18.45, caution is advised due to increased financial risk.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 17.47 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.2 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering 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 9.82, indicates attractively priced shares.

Market Capitalization Highlights: Above the industry average, the company’s market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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Delving Into the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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.