DaVita ( (DVA) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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DaVita shares are sliding as investors react to reports of a proposed federal crackdown on Medicaid state-directed payments, which would push reimbursement rates closer to lower Medicare levels and raise concerns about future revenue. The selloff also reflects broader worries that tighter government spending could weigh on the entire healthcare services sector.
After DaVita recently hit fresh 52-week highs on the back of strong first-quarter earnings and higher full-year guidance, some traders appear to be locking in profits. That combination of regulatory pressure and profit-taking is amplifying the move lower in the stock, even though the company’s long-term outlook has not been formally revised.
More about DaVita
YTD Price Performance: 74.86%
Average Trading Volume: 886,151
Technical Sentiment Signal: Buy
Current Market Cap: $12.64B
For further insights into DVA stock on TipRanks’ Stock Analysis page.
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