Form 4: DaVita CCO Exercises Stock Appreciation Rights

DaVita's Chief Compliance Officer, James O. Hearty, exercised Stock Appreciation Rights, resulting in a net increase in directly held common stock after withholdings.

Summary

• James O. Hearty, DaVita Inc.'s Chief Compliance Officer, exercised 5,875 Stock Appreciation Rights (SARs) on December 4, 2025.
• The SARs had an exercise price of $108.93 per share.
• In connection with the exercise, 5,412 shares were withheld to cover the base price, and an additional 203 shares were withheld to satisfy tax obligations, both at a price of $118.25 per share.
• Following these transactions, Mr. Hearty directly owns 26,298 shares of DaVita Common Stock.
• The SARs were granted on March 15, 2021, and vested 50% on March 15, 2024, and the remaining 50% on March 15, 2025, with an expiration date of March 15, 2026.

Sentiment

Score: 6

Explanation: The exercise of equity awards by an executive is generally a neutral to slightly positive signal, indicating the executive is realizing value from their compensation, often implying confidence in the stock's performance since the grant date. The net effect on direct ownership from this specific transaction is an increase of 260 shares (5,875 acquired 5,412 withheld 203 withheld).

Positives

• An executive is exercising equity awards, indicating they are realizing value from their compensation, which can be a neutral to slightly positive signal.
• The disposition price of $118.25 for withheld shares is higher than the SAR exercise price of $108.93, suggesting the stock price has appreciated since the SARs were granted or vested.

Negatives

• A significant portion of the gross shares acquired (5,412 for base price and 203 for taxes) were disposed of, which is a common practice for cashless exercises and tax withholdings, but reduces the net shares added to direct holdings.

Future Outlook

No specific forward-looking statements or guidance are provided in this filing, as it primarily reports past insider transactions.

Industry Context

This filing reports a routine executive equity award exercise and does not provide information directly related to broader industry trends or competitive landscape.

Stakeholder Impact

• Shareholders: The exercise of Stock Appreciation Rights by an executive can be viewed as a positive signal of management's belief in the company's value, as they are realizing gains from previously granted equity.
• Employees: This filing is specific to one executive's compensation and does not directly impact the broader employee base.

Key Dates

Recommendation

This Form 4 filing details a routine exercise of Stock Appreciation Rights by a company executive. While the executive is realizing value from their equity compensation, which can be a neutral to slightly positive signal, it does not provide new fundamental information about DaVita's operational performance, financial health, or strategic direction that would warrant a change in investment recommendation. The transaction is a standard part of executive compensation and does not indicate a significant shift in the company's outlook or valuation.

Keywords

DaVita Inc., DVA, Form 4, Insider Transaction, Stock Appreciation Rights, SARs, Executive Compensation, James O. Hearty, Chief Compliance Officer, Equity Awards