Ontario Teachers Pension Plan Board Grows Position in Chemed Corporation (NYSE:CHE)

Key Points

• The Ontario Teachers Pension Plan Board increased its stake in Chemed Corporation by 258.4%, holding 5,992 shares valued at approximately $3.69 million.
• Chemed has reported a missed earnings target, with an EPS of $4.27, falling short of the consensus estimate of $6.02.
• The company announced a quarterly dividend increase to $0.60 per share, up from $0.50, which reflects a 0.6% dividend yield.

Ontario Teachers Pension Plan Board lifted its stake in Chemed Corporation (NYSE:CHE - Free Report) by 258.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 5,992 shares of the company's stock after buying an additional 4,320 shares during the period. Ontario Teachers Pension Plan Board's holdings in Chemed were worth $3,687,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of CHE. Neuberger Berman Group LLC boosted its holdings in Chemed by 1.2% in the fourth quarter. Neuberger Berman Group LLC now owns 501,562 shares of the company's stock valued at $265,726,000 after purchasing an additional 5,809 shares during the last quarter. FMR LLC raised its position in shares of Chemed by 18.9% during the 4th quarter. FMR LLC now owns 283,790 shares of the company's stock worth $150,352,000 after purchasing an additional 45,174 shares during the period. Epoch Investment Partners Inc. raised its position in shares of Chemed by 5.1% during the 4th quarter. Epoch Investment Partners Inc. now owns 252,237 shares of the company's stock worth $133,635,000 after purchasing an additional 12,167 shares during the period. Boston Trust Walden Corp raised its position in shares of Chemed by 1.7% during the 1st quarter. Boston Trust Walden Corp now owns 246,351 shares of the company's stock worth $151,585,000 after purchasing an additional 4,179 shares during the period. Finally, Northern Trust Corp increased its position in Chemed by 19.3% in the 4th quarter. Northern Trust Corp now owns 208,535 shares of the company's stock valued at $110,482,000 after acquiring an additional 33,710 shares during the period. Hedge funds and other institutional investors own 95.85% of the company's stock.

Chemed Trading Down 0.6%

Shares of Chemed stock traded down $2.71 on Monday, hitting $432.03. 34,369 shares of the company traded hands, compared to its average volume of 136,729. The firm's 50-day simple moving average is $494.51 and its 200 day simple moving average is $548.45. The company has a market cap of $6.30 billion, a P/E ratio of 22.21, a P/E/G ratio of 2.40 and a beta of 0.46. Chemed Corporation has a 12-month low of $408.42 and a 12-month high of $623.60.

Chemed (NYSE:CHE - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $4.27 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.02 by ($1.75). Chemed had a net margin of 11.56% and a return on equity of 25.83%. The company had revenue of $618.80 million for the quarter, compared to analysts' expectations of $650.60 million. During the same quarter in the prior year, the firm earned $5.47 EPS. Chemed's quarterly revenue was up 3.8% compared to the same quarter last year. Analysts predict that Chemed Corporation will post 21.43 earnings per share for the current year.

Chemed Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Monday, August 11th will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.6%. This is a boost from Chemed's previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Monday, August 11th. Chemed's dividend payout ratio is currently 12.34%.

Insider Transactions at Chemed

In related news, EVP Spencer S. Lee sold 1,500 shares of the firm's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $577.99, for a total transaction of $866,985.00. Following the completion of the transaction, the executive vice president directly owned 14,627 shares of the company's stock, valued at approximately $8,454,259.73. This trade represents a 9.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Nicholas Michael Westfall sold 10,012 shares of Chemed stock in a transaction on Monday, August 4th. The stock was sold at an average price of $421.91, for a total transaction of $4,224,162.92. The disclosure for this sale can be found here. Corporate insiders own 3.29% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on CHE. Wall Street Zen lowered Chemed from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Bank of America dropped their price target on Chemed from $708.00 to $650.00 and set a "buy" rating for the company in a report on Monday, June 30th. Jefferies Financial Group started coverage on Chemed in a report on Friday, July 25th. They set a "hold" rating and a $500.00 price objective on the stock. Oppenheimer lowered their target price on Chemed from $650.00 to $580.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Finally, Royal Bank Of Canada lowered their target price on Chemed from $640.00 to $589.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Two analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat, Chemed has an average rating of "Moderate Buy" and a consensus target price of $579.75.

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.