DaVita Inc. (DVA), based in Denver, Colorado, provides kidney dialysis services to patients suffering from chronic kidney failure in the United States. The company, which has a market capitalization of approximately $12.5 billion, also provides outpatient, inpatient, and home hemodialysis services and operates a clinical laboratory.
Companies valued at $10 billion or more are commonly referred to as “large-cap stocks,” and DaVita fits right into that category. The company is a leading provider of dialysis services and is known for treating patients with chronic renal failure and end-stage renal disease (ESRD). We are also known for offering a variety of medical services, including integrated treatment plans, personalized care teams, and health management services.
The medical care facility provider's stock has fallen 9.7% from its 52-week high of $169.51 on Nov. 27. Although down 5.3% over the past three months, it still outperforms the broader Healthcare Select Sector SPDR Fund (XLV) at 10.1%. % decrease over the same time frame.
www.barchart.com
Looking further into the long term, DVA has gained 46.7% over the past 52 weeks, significantly outperforming XLV's 2.8% return. Over the past six months, DVA stock has increased 8.2%, outpacing XLV's 5.5% decline over the same period.
DVA has been trading below its 50-day moving average since early December, but has been above its 200-day moving average since last year.
www.barchart.com
Following the release of its third-quarter results on October 29, DVA's stock price plummeted 10.8% as adjusted EPS fell 9.1% year-over-year to $2.59, missing consensus estimates by 6.2%. A 26.2% annual decline in other income and a year-on-year decline in normalized unearned treatment costs may have further eroded investor confidence.
Nevertheless, dialysis patient services revenue increased 6.3%, and combined with higher average reimbursement rates and other normal fluctuations, revenue rose 4.6% annually to $3.26 billion, beating expectations by 1.2% I did.
DVA has outpaced rival Fresenius Medical Care AG (FMS)'s 8.6% rise over the past 52 weeks, but has lagged FMS's 16.9% rise on a six-month basis.
Despite DaVita's recent outperformance relative to the broader sector, analysts remain cautious about the company's prospects. The consensus rating from the eight analysts covering the stock is a Hold, and the average price target of $163 suggests a modest 6.5% premium to current levels.
On the date of publication, Neharika Jain did not have (directly or indirectly) any positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
