David Staffieri, COO at DaVita Inc (DVA), recently added 20,000 shares. The buy increased his stake by 18 percent, and came to a total cost of just over $1.55 million.
This marks the first insider buy at the company since late 2020. Insiders have been consistent and sizeable sellers of shares over the past three years, with only a few modest insider buys in total.
Overall, insiders at the company own 2.9 percent of shares.
Shares of the dialysis center operator have shed about 32 percent in the past year. Earnings are also down by a similar amount, but overall revenue is flat.
The stock currently goes for about 10 times forward earnings. While inexpensive to the overall stock market, the company hasn’t traded higher than 18 times earnings in the past year.
Action to take: Shares don’t pay a dividend, so investors won’t get paid to wait for a turnaround in shares. The better play here would be to wait for a market bottom before considering investing in shares for a rebound.
For traders, the stock has dropped on heavy volume in recent weeks, and may see a short-term bounce from here. The January $90 calls, last going for about $6.50, could deliver mid-to-high double-digit gains in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.