Berkshire Hathaway sells $116m in DaVita shares

Published 20/02/2025, 01:50
Berkshire Hathaway sells $116m in DaVita shares

OMAHA, NE— Berkshire Hathaway Inc . (NYSE:BRKa) (NYSE:BRK.A) has recently offloaded a substantial portion of its holdings in DaVita Inc . (NYSE:DVA), as indicated by a recent SEC filing. The transactions, which occurred on February 14, 18, and 19, 2025, involved the sale of DaVita common stock amounting to approximately $116 million. The timing is notable, as InvestingPro data shows DVA’s stock has experienced a significant 12.5% decline over the past week, though it maintains a 26% gain over the past year.

The shares were sold at prices ranging from $150.78 to $159.16 per share. After these transactions, Berkshire Hathaway (NYSE:BRKb)’s total shares in DaVita stood at 35,142,479. These sales reflect Berkshire’s ongoing portfolio management strategy, though the exact reasons for the reduction in DaVita holdings were not disclosed in the filing. According to InvestingPro analysis, DVA currently trades at a P/E ratio of 14, with management actively pursuing share buybacks. For deeper insights into DVA’s valuation metrics and 8 additional ProTips, subscribers can access the comprehensive Pro Research Report.

Warren E. Buffett, the CEO of Berkshire Hathaway, was listed as a reporting owner in the filing. As the controlling stockholder of Berkshire, Buffett may be deemed to beneficially own the shares, though he disclaims beneficial ownership except to the extent of his pecuniary interest.

DaVita, based in Denver, Colorado, is a leading provider of kidney care services in the United States. The company has been a part of Berkshire’s portfolio for several years, reflecting Buffett’s interest in the healthcare sector.

In other recent news, DaVita Inc. reported its fourth-quarter 2024 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $2.24, compared to the forecasted $2.13. Revenue also exceeded predictions, reaching $3.3 billion against an anticipated $3.26 billion. Despite these positive results, analyst TD Cowen adjusted DaVita’s stock price target to $165, reflecting a detailed review of their financial performance and future projections. Bernstein SocGen Group maintained its Market Perform rating for DaVita, with a steady price target of $184, acknowledging the company’s effective revenue cycle management but expressing concerns over declining treatment volume growth. DaVita’s management provided guidance for 2025, anticipating flat treatment volumes but projecting a revenue growth per treatment between 4.5% and 5.5%. The company also plans to close approximately 20 centers in 2025 to optimize operations. Analysts noted the impact of phosphate binders and revenue cycle management activities on future financial estimates, which led to slight revisions in earnings before interest and taxes (EBIT) projections for upcoming years.

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