Chemed (NYSE:CHE) Shares Down 7.2% Following Weak Earnings

Chemed Co. (NYSE:CHE)’s share price fell 7.2% during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $561.00 and last traded at $573.47. 71,152 shares traded hands during trading, a decline of 8% from the average session volume of 77,294 shares. The stock had previously closed at $617.95.

The company reported $4.68 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.09 by ($0.41). The company had revenue of $589.23 million for the quarter, compared to analysts’ expectations of $587.18 million. Chemed had a return on equity of 32.29% and a net margin of 12.03%.

Chemed Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 15th. Investors of record on Monday, February 26th were issued a dividend of $0.40 per share. The ex-dividend date of this dividend was Friday, February 23rd. This represents a $1.60 dividend on an annualized basis and a yield of 0.28%. Chemed’s dividend payout ratio (DPR) is 8.93%.

Analyst Upgrades and Downgrades

CHE has been the topic of several recent analyst reports. Royal Bank of Canada raised their price target on Chemed from $604.00 to $712.00 and gave the company an “outperform” rating in a report on Monday, March 4th. Oppenheimer raised their price target on Chemed from $625.00 to $650.00 and gave the company an “outperform” rating in a report on Thursday, February 29th.

Insider Buying and Selling at Chemed

In related news, EVP Spencer S. Lee sold 2,000 shares of the firm’s stock in a transaction dated Thursday, March 28th. The stock was sold at an average price of $641.65, for a total transaction of $1,283,300.00. Following the transaction, the executive vice president now directly owns 20,760 shares of the company’s stock, valued at approximately $13,320,654. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. In related news, CFO Michael D. Witzeman sold 2,650 shares of the firm’s stock in a transaction dated Thursday, March 21st. The stock was sold at an average price of $643.14, for a total transaction of $1,704,321.00. Following the transaction, the chief financial officer now directly owns 2,882 shares of the company’s stock, valued at approximately $1,853,529.48. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Spencer S. Lee sold 2,000 shares of the firm’s stock in a transaction dated Thursday, March 28th. The shares were sold at an average price of $641.65, for a total value of $1,283,300.00. Following the transaction, the executive vice president now directly owns 20,760 shares in the company, valued at $13,320,654. The disclosure for this sale can be found here. Insiders have sold a total of 15,808 shares of company stock valued at $10,184,531 in the last 90 days. Corporate insiders own 3.32% of the company’s stock.

Hedge Funds Weigh In On Chemed

Large investors have recently modified their holdings of the company. Wealth Alliance grew its position in Chemed by 3.0% during the 4th quarter. Wealth Alliance now owns 578 shares of the company’s stock worth $338,000 after acquiring an additional 17 shares during the last quarter. Fifth Third Bancorp grew its position in Chemed by 0.5% during the 3rd quarter. Fifth Third Bancorp now owns 3,914 shares of the company’s stock worth $2,034,000 after acquiring an additional 21 shares during the last quarter. Legacy Wealth Asset Management LLC grew its position in Chemed by 0.9% during the 4th quarter. Legacy Wealth Asset Management LLC now owns 2,275 shares of the company’s stock worth $1,330,000 after acquiring an additional 21 shares during the last quarter. Signaturefd LLC grew its position in Chemed by 5.8% during the 4th quarter. Signaturefd LLC now owns 385 shares of the company’s stock worth $225,000 after acquiring an additional 21 shares during the last quarter. Finally, Ballentine Partners LLC grew its position in Chemed by 3.4% during the 1st quarter. Ballentine Partners LLC now owns 660 shares of the company’s stock worth $424,000 after acquiring an additional 22 shares during the last quarter. 95.85% of the stock is owned by hedge funds and other institutional investors.

Chemed Stock Performance

The firm has a 50-day moving average of $624.00 and a 200-day moving average of $590.66. The firm has a market capitalization of $8.67 billion, a P/E ratio of 32.00, a price-to-earnings-growth ratio of 2.47 and a beta of 0.42.

About Chemed

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in VITAS and Roto-Rooter segments. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees.