Berkshire Hathaway sells $69.03 million of DaVita (NYSE:DVA) stock

Berkshire Hathaway reported selling 382,563 DaVita shares for approximately $69.03 million on October 27, 2026, at $180.4305 per share; it reported beneficial ownership of 28,314,666 shares afterward. DaVita shares later stood at $193.31, up 70% year to date. Separately, DaVita beat Q3 expectations with adjusted EPS of $3.82 versus $3.55 and revenue of $3.58 billion versus $3.51 billion, but its shares declined in after-hours trading amid concerns about cost pressures and long-term growth.

Analysis

The sale is a weak standalone bearish signal: Berkshire retains a large position, and the disclosed trim is only about 1.3% of its post-sale holding. The market-relevant issue is whether the earnings beat converts into durable cash generation or is being offset by labor, treatment-cost, and reimbursement pressure. A beat accompanied by after-hours weakness suggests investors are discounting the quality and forward durability of earnings, not simply the quarter’s result.

Near term (days to weeks), avoid treating Berkshire’s execution price as a valuation anchor; it is a lagging, single transaction, and the shares have since traded higher. Over 1–3 months, watch management’s cost commentary, treatment-volume trends, and reimbursement updates. Over 6–18 months, labor and reimbursement economics could matter more than buybacks: repurchases support per-share results only if underlying cash flows hold up. Claims of a high free-cash-flow yield and aggressive repurchases should be checked against reported cash flow, debt, and actual share-count reduction.

Contrarian risk: a strong quarter and retained Berkshire stake may limit downside if cost concerns prove temporary. Conversely, the large year-to-date advance raises the bar for guidance and leaves the stock vulnerable if forward estimates are cut. The thesis weakens if cost trends stabilize, volumes remain healthy, and guidance supports sustained cash generation; it strengthens if margins or outlook deteriorate despite another earnings beat.

Key Decisions for Investors

• Do not buy DVA solely on the earnings beat or sell solely on Berkshire’s trim; neither provides a sufficient incremental signal without guidance and cost details.
• Tactical watch: if post-earnings weakness persists and management commentary or subsequent data confirms rising costs or weaker outlook, consider a defined-risk bearish position such as a put spread rather than an outright short. Confirm the post-earnings price action and option pricing first; the article supplies neither.
• For existing DVA exposure, reassess sizing against labor, reimbursement, and treatment-volume sensitivity. Treat buybacks as supportive only after verifying net share-count reduction and cash flow after investment and financing needs.
• Monitor DaVita’s next guidance update and relevant reimbursement decisions, plus whether cost pressure is reflected in margins. A recovery after the earnings reaction with stable outlook would falsify the near-term bearish setup; deteriorating outlook or margin evidence would strengthen it.