DaVita’s stock has faced a significant decline, dropping over 12% following the company’s disappointing guidance for 2025. The forecasted adjusted profit per share is between $10.20 and $11.30, which falls short of analysts’ expectations of $11.24.

The dialysis service provider, based in Colorado, has attributed this weak outlook to several factors, including:

• Increasing patient care costs
• Expenses of $24.2 million related to the closure of U.S. dialysis centers

In a related development, Berkshire Hathaway, the largest institutional investor in DaVita, sold 203,091 shares, which reduced its ownership stake to 45%. This transaction, valued at approximately $6.4 billion, was part of a preplanned share repurchase agreement established in April. This agreement aims to gradually decrease Berkshire’s ownership stake on a quarterly basis. Since its initial investment in DaVita in 2011, the company has become Berkshire’s 10th largest equity holding as of September.

📎 Related coverage from: cnbc.com