Warren Buffett Just Cashed Out Hundred Millions–Is DaVita in Trouble or Is This a Genius Move?

Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) just offloaded another 750,000 shares of DaVita (NYSE:DVA), trimming its stake in the dialysis services provider by roughly 2%. The sale, which took place between February 14 and 19, pulled in about $116 million. This move follows an earlier 203,091-share sale, but unlike the prior transactionpart of a structured share buybackthis one appears to be an open-market trade. While Buffett’s firm remains DaVita’s largest shareholder, controlling over 35 million shares worth about $5.4 billion, the reason behind the latest sale remains unclear.

DaVita shares dropped by 5.3% as of 10.18am, extending losses from a steep 11% plunge on February 14 after the company reported better-than-expected earnings but issued a cautious outlook for fiscal 2025. Analysts remain on the fence about the stock, citing cost pressures tied to rising patient care expenses. Currently, DaVita holds a “Hold” consensus rating, with analysts targeting an average price of $172.67an implied upside of 11.4%. Despite its recent turbulence, DVA has climbed nearly 19.3% over the past year, raising questions about whether Berkshire’s selling signals broader concerns or just portfolio rebalancing.

For investors, insider selling often triggers caution, but it’s not always a red flag. Executives and major shareholders cash out for a variety of reasonssometimes strategic, sometimes personal. With Berkshire maintaining a commanding position in DaVita, the latest sale might simply be profit-taking after a solid run. But given Buffett’s long-term track record, any move by the Oracle of Omaha is bound to keep investors watching closely.

This article first appeared on GuruFocus.