Warren Buffet’s Berkshire Hathaway further increased its stake in Davita by 2%. Selling additional stock worth $116 million – Davita (NYSE: DVA)

Warren BuffettInvestment companies Berkshire Hathaway BRK BRK2% of the dialysis service provider has been unloaded Davita DVA. The deal was executed between February 14 and 19 and was worth approximately $116 million.

what happened: The Form 4 application filed with the U.S. Securities and Exchange Commission on Wednesday night shows Berkshire Hathaway sold 750,000 shares of Davita in multiple batches, making its shares in the company It fell to 35.14 million shares, or about 44%. This is after the sale of 203,091 shares previously sold on February 11, reducing Berkshire ownership to 45%.

The latest deal is classified as internal trade, unlike early trade related to stock buyback agreements. These sales are part of Berkshire’s continuous portfolio management approach, but the real reason behind the sales has not been disclosed.

Despite recent sales, the buffet-dominated company remains the majority owner of Davita, with 35.14 million shares worth about $5.4 billion. According to Reuters, Berkshire has been a Davita investor since the last quarter of 2011.

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Why it matters: Berkshire Hathaway’s recent Davita stock sold is lowering Berkshire’s stake in the company to 45 after a previous sale on February 11 %.

Davita’s shares fell more than 11% after the company’s yield shooting on February 14, but the disappointing fiscal 2025 outlook. The company expects full-year earnings per share to be between $10.20 and $11.30, while analysts’ average expectations are less than $11.44.

Intravenous fluids, increased mortality rates and shortages of regulatory changes are some of the challenges the company faces recently. Javier Rodriquez, CEO of Davita, acknowledged the challenge and said: “Despite the unique obstacles, we have achieved strong results in 2024, on the scale of our guidance. The full-year adjusted operating revenue and adjusted EPS were generated in half.”

Meanwhile, according to Streetinsider Bernstein Socgen Group Analyst Lisa Bedell Clive Point out that “we treat the results as negative.” She strengthened her “market performance” rating, while Davita stock has a target price of $184.00.

That said, stocks in kidney dialysis providers have soared more than 20% over the past 12 months.

Image via shutterstock

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