Chemed (NYSE:CHE) Shares Down 7.2% on Disappointing Earnings

Chemed Co. (NYSE:CHE)’s stock price fell 7.2% during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $561.00 and last traded at $573.47. 71,152 shares traded hands during mid-day 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 the consensus estimate of $5.09 by ($0.41). The business had revenue of $589.23 million during the quarter, compared to analysts’ expectations of $587.18 million. Chemed had a return on equity of 31.69% and a net margin of 12.36%.

Chemed Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 15th. Shareholders of record on Monday, February 26th were given a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 0.29%. The ex-dividend date of this dividend was Friday, February 23rd. Chemed’s payout ratio is 8.61%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on CHE. StockNews.com cut Chemed from a “buy” rating to a “hold” rating in a research report on Friday. Royal Bank of Canada increased their price objective on Chemed from $604.00 to $712.00 and gave the stock an “outperform” rating in a research report on Monday, March 4th. Finally, Oppenheimer increased their price objective on Chemed from $625.00 to $650.00 and gave the stock an “outperform” rating in a research report on Thursday, February 29th.

Insider Buying and Selling at Chemed

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

Institutional Trading of Chemed

Large investors have recently made changes to their positions in the stock. Chicago Capital LLC acquired a new stake in shares of Chemed during the fourth quarter valued at $1,170,000. Raymond James & Associates boosted its stake in Chemed by 5.7% in the 4th quarter. Raymond James & Associates now owns 67,918 shares of the company’s stock worth $39,715,000 after buying an additional 3,654 shares during the last quarter. Ontario Teachers Pension Plan Board boosted its stake in Chemed by 229.2% in the 3rd quarter. Ontario Teachers Pension Plan Board now owns 5,984 shares of the company’s stock worth $3,110,000 after buying an additional 4,166 shares during the last quarter. Trust Point Inc. acquired a new stake in Chemed in the 4th quarter worth about $2,325,000. Finally, Charles Schwab Investment Management Inc. boosted its stake in Chemed by 1.3% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 97,335 shares of the company’s stock worth $50,585,000 after buying an additional 1,283 shares during the last quarter. Institutional investors and hedge funds own 95.85% of the company’s stock.

Chemed Trading Down 2.3 %

The business has a 50 day simple moving average of $623.76 and a 200-day simple moving average of $590.54. The stock has a market capitalization of $8.47 billion, a price-to-earnings ratio of 30.16, a price-to-earnings-growth ratio of 2.48 and a beta of 0.42.

Chemed Company Profile

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.