We’re in an age when the threat of cyberattacks is real and substantial. Confirming this, veteran healthcare company DaVita (DVA -0.91%) suffered a hacker ambush in recent days, a situation that spooked many investors. As a result, according to data compiled by S&P Global Market Intelligence, DaVita’s stock price fell by 10% over the holiday-shortened trading week.
Sneak attack
DaVita disclosed the incident on Monday in a regulatory filing. The company said that on the previous Saturday, April 12, it was subject to a ransomware attack. When the attack was discovered by DaVita, the company activated its response protocols. It also implemented containment measures in order to limit the damage; these included isolating systems that were targeted in the incident.
In the document, DaVita said it had activated its contingency plans, stressing that its patient care was continuing unabated. The company runs over 2,600 outpatient dialysis centers spread throughout the U.S.
“However, the incident is impacting some of our operations, and while we have implemented interim measures to allow for the restoration of certain functions, we cannot estimate the duration or extent of the disruption at this time,” the company added.
It also said that it was conducting investigation into the matter, while its response was ongoing. The full scope of the attack was not known at the time, nor was its ultimate impact on the company’s operations.
Question marks
And that’s likely the ultimate reason investors were bailing on DaVita stock in the wake of the disclosure. Investors dislike uncertainty, and there remains plenty in the air after the attack. It’s still unclear who or what is behind the incident, what their ransom demands were, and — as the company admitted — how exactly DaVita will be affected. Hopefully we’ll start to get some answers soon.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
