DVA Should I Buy
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DaVita Inc (DVA) is not a strong buy at this moment for a beginner, long-term investor with $50,000-$100,000. While the stock has shown some positive momentum and favorable technical indicators, the lack of strong proprietary trading signals, insider and hedge fund selling, and mixed financial performance suggest a cautious approach. Holding the stock or waiting for a better entry point is recommended.
The technical indicators show a bullish trend with MACD above 0 and positively contracting, RSI at 71.734 in the neutral zone, and bullish moving averages (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level (R1: 153.474), which may limit immediate upside potential.
Analysts have raised price targets, with UBS projecting a high target of $190 and emphasizing strong EPS growth driven by the absence of prior-year losses and accretive acquisitions.
Q4 financials showed revenue growth of 9.87% YoY and an EPS increase of 6.47% YoY, indicating some operational improvements.
Hedge funds and insiders are significantly selling the stock, with hedge fund selling up 6939.07% and insider selling up 267.89%.
Net income dropped by -9.68% YoY in Q4, indicating profitability challenges.
Options data shows bearish sentiment with a high put-call volume ratio of 4.23.
In Q4 2025, DaVita's revenue increased by 9.87% YoY to $3.62 billion, and EPS grew by 6.47% YoY to 3.29. However, net income declined by -9.68% YoY to $234.2 million, reflecting challenges in profitability. Gross margin improved to 28.28%, up 4.09% YoY.
Analysts have mixed views. UBS maintains a Buy rating with a price target of $190, citing strong EPS growth and accretive acquisitions. Other firms like Truist and Barclays raised price targets but maintain Hold or Equal Weight ratings, reflecting cautious optimism. The consensus suggests moderate growth potential but not a strong buy signal.
