Form 4: DaVita Officer Exercises SARs, Boosts Share Holdings

DaVita's Chief Legal & Public Affairs Officer, Kathleen Alyce Waters, exercised Stock Appreciation Rights, resulting in a net increase of 1,364 shares in her direct beneficial ownership.

Summary

• Kathleen Alyce Waters, Chief Legal & Public Affairs Officer of DaVita Inc. (DVA), exercised 8,079 Stock Appreciation Rights (SARs) on February 6, 2026.
• The SARs had an exercise price of $108.93 per share.
• In connection with the exercise, 5,898 shares were withheld at a price of $149.22 to cover the base price.
• An additional 817 shares were withheld at $149.22 to satisfy tax withholding obligations.
• The net effect of these transactions was an increase of 1,364 shares in Ms. Waters' direct beneficial ownership of DaVita common stock, bringing her total to 99,118 shares.
• The SARs were granted on March 15, 2021, and vested 50% on March 15, 2024, and 50% on March 15, 2025.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive event. While routine, the net increase in the officer's direct shareholdings and the realization of a gain from SARs suggest continued confidence and alignment with shareholder value.

Positives

• The Chief Legal & Public Affairs Officer exercised Stock Appreciation Rights, indicating confidence in the company's stock value and realizing a gain.
• The exercise resulted in a net increase of 1,364 shares in the officer's direct beneficial ownership, aligning management's interests with shareholders.
• The market price of DaVita common stock at the time of disposition ($149.22) was significantly higher than the SAR exercise price ($108.93), reflecting a substantial gain for the officer.

Negatives

• No significant negatives are apparent from this routine insider transaction.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future outlook.

Industry Context

StockSavvy.ai notes that routine insider transactions like SAR exercises are common in the healthcare services industry, particularly for established companies like DaVita. Such transactions typically reflect standard executive compensation practices rather than significant strategic shifts or market signals. The increase in direct beneficial ownership by a key officer can be viewed positively, indicating continued alignment with shareholder interests.

Comparison to Industry Standards

• This type of executive compensation event, involving the exercise of Stock Appreciation Rights and subsequent share withholdings for tax and base price, is a standard practice across various industries, including healthcare.
• Similar compensation structures are observed at peers like Fresenius Medical Care (FMS) or Baxter International (BAX), where executives periodically exercise equity awards.
• The net increase in shares held by the officer, rather than a full cash-out, suggests a continued investment in the company, which is generally viewed favorably compared to executives divesting all shares immediately upon vesting.

Stakeholder Impact

• Shareholders: The net increase in direct beneficial ownership by a key officer may be seen as a positive signal of management's continued alignment with shareholder interests. The transaction itself is a routine compensation event and not expected to have a material impact on the company's operations or stock price.
• Employees: No direct impact on employees is indicated by this insider transaction.
• Customers: No direct impact on customers is indicated by this insider transaction.
• Suppliers: No direct impact on suppliers is indicated by this insider transaction.
• Creditors: No direct impact on creditors is indicated by this insider transaction.

Next Steps

• No specific future actions, events, or milestones are mentioned in this Form 4 filing beyond the completion of the reported transactions.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction involving the exercise of Stock Appreciation Rights and a net increase in the officer's direct shareholdings. While the increase in insider ownership is generally positive, it is a standard compensation event and does not provide new fundamental information that would warrant a change in investment recommendation. Investors should continue to hold based on broader company fundamentals and market conditions.

Keywords

DaVita, DVA, SEC Form 4, Insider Trading, Stock Appreciation Rights, SARs, Executive Compensation, Beneficial Ownership, Kathleen Alyce Waters