Chemed (NYSE:CHE) Sets New 52-Week Low on Disappointing Earnings

Chemed Corporation (NYSE:CHE)’s share price hit a new 52-week low during trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $410.00 and last traded at $432.38, with a volume of 48821 shares traded. The stock had previously closed at $464.69.

The company reported $4.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $6.02 by ($1.75). Chemed had a return on equity of 25.94% and a net margin of 11.56%. The business had revenue of $618.80 million during the quarter, compared to the consensus estimate of $650.60 million. During the same period last year, the company earned $5.47 earnings per share. The business’s quarterly revenue was up 3.8% compared to the same quarter last year.

Chemed Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 17th. Investors of record on Thursday, May 29th were issued a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 0.48%. The ex-dividend date of this dividend was Thursday, May 29th. Chemed’s dividend payout ratio (DPR) is 9.74%.

Analysts Set New Price Targets

A number of brokerages recently issued reports on CHE. Jefferies Financial Group began coverage on Chemed in a report on Friday, July 25th. They issued a “hold” rating and a $500.00 price objective for the company. Bank of America cut their target price on Chemed from $708.00 to $650.00 and set a “buy” rating for the company in a research report on Monday, June 30th. Wall Street Zen downgraded Chemed from a “buy” rating to a “hold” rating in a research report on Saturday, July 5th. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $640.00 target price (down from $674.00) on shares of Chemed in a research report on Monday, June 30th.

Insiders Place Their Bets

In other news, EVP Spencer S. Lee sold 1,500 shares of the stock in a transaction on Friday, May 16th. The stock was sold at an average price of $577.99, for a total transaction of $866,985.00. Following the completion of the sale, the executive vice president owned 14,627 shares in the company, valued at approximately $8,454,259.73. This represents a 9.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Kevin J. Mcnamara sold 1,500 shares of the stock in a transaction on Monday, May 5th. The shares were sold at an average price of $576.45, for a total value of $864,675.00. Following the completion of the sale, the chief executive officer owned 101,197 shares of the company’s stock, valued at $58,335,010.65. The trade was a 1.46% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 4,500 shares of company stock valued at $2,598,450 in the last quarter. Insiders own 3.29% of the company’s stock.

Institutional Trading of Chemed

Hedge funds have recently modified their holdings of the business. Bessemer Group Inc. lifted its holdings in shares of Chemed by 14.2% in the first quarter. Bessemer Group Inc. now owns 950 shares of the company’s stock valued at $585,000 after purchasing an additional 118 shares in the last quarter. DAVENPORT & Co LLC purchased a new stake in shares of Chemed in the first quarter valued at $265,000. Mather Group LLC. lifted its holdings in shares of Chemed by 53.3% in the first quarter. Mather Group LLC. now owns 161 shares of the company’s stock valued at $99,000 after purchasing an additional 56 shares in the last quarter. Park Place Capital Corp lifted its holdings in shares of Chemed by 71.2% in the first quarter. Park Place Capital Corp now owns 3,572 shares of the company’s stock valued at $2,198,000 after purchasing an additional 1,486 shares in the last quarter. Finally, Synergy Asset Management LLC lifted its holdings in shares of Chemed by 108.4% in the first quarter. Synergy Asset Management LLC now owns 3,049 shares of the company’s stock valued at $1,876,000 after purchasing an additional 1,586 shares in the last quarter. Hedge funds and other institutional investors own 95.85% of the company’s stock.

Chemed Price Performance

The company has a market cap of $6.09 billion, a PE ratio of 21.40, a price-to-earnings-growth ratio of 2.25 and a beta of 0.50. The stock has a fifty day moving average price of $517.94 and a 200-day moving average price of $555.29.

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.