Why DaVita Inc. Jumped Higher Today
DaVita (NYSE: DVA) is up 12.8% at 12:35 p.m. EST after announcing that it's selling its medical group to UnitedHealth Group's (NYSE: UNH) health services business Optum for $4.9 billion. UnitedHealth's investors ho-hummed the deal with shares trading basically flat today.
The sale of DaVita's medical group, which has 300 medical clinics, 35 urgent-care centers, and six outpatient surgery centers, shouldn't be much of a surprise since management said the company was exploring selling the unit that produced an operating loss of $5 million in the most recent quarter.
Health insurer UnitedHealth shouldn't be much of a surprise as the buyer either since it's been expanding its healthcare offerings with more direct patient care. Earlier this year, United Health acquired Surgical Care Affiliates for $2.3 billion.
Source: Fool.com
Davita Inc. Stock
Currently there is a rather positive sentiment for Davita Inc. with 4 Buy predictions and 1 Sell predictions.
However, we have a potential of -22.98% for Davita Inc. as the target price of 119 € is below the current price of 154.5 €.
