FMS - American Renal: Use Today's Stretched Valuation To Sell Before Insiders Dump Their Shares
Company Background
Headquartered in Massachusetts, ARA operates ~233 clinics throughout the United States. ARA uses a joint venture (“JV”) model where ownership and operational responsibility of clinics are shared with kidney doctor partners (nephrologist). Centerbridge Partners, L.P. (a New York-based private equity firm) previously owned ARA before taking it public in 2016 at a price of $22.00/share.
ARA’s clinics provide patients with dialysis treatment for end stage renal disease (“ESRD”). Once diagnosed with ESRD, the patient needs dialysis or a kidney transplant to stay alive because the kidneys no longer function properly. During a typical