Investors Purchase Large Volume of Put Options on Davita (NYSE:DVA)

Davita Inc (NYSE:DVA) was the target of some unusual options trading on Wednesday. Stock traders bought 5,428 put options on the company. This is an increase of approximately 1,602% compared to the average volume of 319 put options.

In related news, Director Pamela M. Arway sold 1,264 shares of the stock in a transaction on Thursday, June 7th. The stock was sold at an average price of $68.76, for a total value of $86,912.64. Following the transaction, the director now owns 39,235 shares of the company’s stock, valued at $2,697,798.60. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.95% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently modified their holdings of DVA. OppenheimerFunds Inc. increased its stake in shares of Davita by 58.7% during the second quarter. OppenheimerFunds Inc. now owns 4,066,317 shares of the company’s stock valued at $282,365,000 after purchasing an additional 1,504,347 shares in the last quarter. Boston Partners increased its stake in shares of Davita by 39.7% during the first quarter. Boston Partners now owns 2,036,058 shares of the company’s stock valued at $134,258,000 after purchasing an additional 578,242 shares in the last quarter. Investec Asset Management LTD increased its stake in shares of Davita by 114.5% during the second quarter. Investec Asset Management LTD now owns 986,777 shares of the company’s stock valued at $68,522,000 after purchasing an additional 526,847 shares in the last quarter. Wedge Capital Management L L P NC increased its stake in shares of Davita by 2,473.3% during the first quarter. Wedge Capital Management L L P NC now owns 528,668 shares of the company’s stock valued at $34,860,000 after purchasing an additional 508,124 shares in the last quarter. Finally, Old Mutual Global Investors UK Ltd. bought a new position in shares of Davita during the first quarter valued at approximately $25,678,000. Institutional investors and hedge funds own 87.80% of the company’s stock.

Shares of Davita stock traded up $2.78 during trading on Friday, reaching $69.29. 3,387,300 shares of the stock were exchanged, compared to its average volume of 1,471,640. The company has a current ratio of 1.90, a quick ratio of 1.88 and a debt-to-equity ratio of 1.82. Davita has a 1 year low of $52.51 and a 1 year high of $80.71. The firm has a market cap of $12.05 billion, a P/E ratio of 20.33, a P/E/G ratio of 1.08 and a beta of 1.16.

Davita (NYSE:DVA) last issued its quarterly earnings data on Wednesday, August 1st. The company reported $1.05 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.97 by $0.08. Davita had a net margin of 4.30% and a return on equity of 14.49%. The business had revenue of $2.89 billion during the quarter, compared to analyst estimates of $2.88 billion. During the same period last year, the business posted $0.92 earnings per share. Davita’s quarterly revenue was up 6.9% compared to the same quarter last year. research analysts forecast that Davita will post 4 earnings per share for the current fiscal year.

Several analysts have issued reports on DVA shares. Zacks Investment Research lowered shares of Davita from a “buy” rating to a “hold” rating in a research report on Wednesday, August 1st. William Blair restated a “buy” rating on shares of Davita in a research report on Wednesday, June 6th. Four research analysts have rated the stock with a hold rating, five have assigned a buy rating and two have given a strong buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $82.13.

About Davita

DaVita Inc provides kidney dialysis services for patients suffering from chronic kidney failure or end stage renal disease (ESRD). The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also provides outpatient, hospital inpatient, and home-based hemodialysis services; owns clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers.

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