Ontario Teachers Pension Plan Board Increases Holdings 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 raised its position in shares of Chemed Corporation (NYSE:CHE - Free Report) by 258.4% in the first quarter, according to its most recent filing with the SEC. The firm owned 5,992 shares of the company's stock after purchasing an additional 4,320 shares during the quarter. Ontario Teachers Pension Plan Board's holdings in Chemed were worth $3,687,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the company. Neuberger Berman Group LLC increased its position in Chemed by 1.2% during the 4th 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 period. FMR LLC increased its position in Chemed by 18.9% during the 4th quarter. FMR LLC now owns 283,790 shares of the company's stock valued at $150,352,000 after purchasing an additional 45,174 shares during the period. Epoch Investment Partners Inc. increased its position in Chemed by 5.1% during the 4th quarter. Epoch Investment Partners Inc. now owns 252,237 shares of the company's stock valued at $133,635,000 after purchasing an additional 12,167 shares during the period. Boston Trust Walden Corp increased its position in Chemed by 1.7% during the 1st quarter. Boston Trust Walden Corp now owns 246,351 shares of the company's stock valued at $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% during the 4th quarter. Northern Trust Corp now owns 208,535 shares of the company's stock valued at $110,482,000 after purchasing an additional 33,710 shares during the period. Institutional investors and hedge funds own 95.85% of the company's stock.

Chemed Trading Up 0.2%

Shares of CHE traded up $0.91 during trading hours on Friday, reaching $435.82. The stock had a trading volume of 149,122 shares, compared to its average volume of 180,996. Chemed Corporation has a 12 month low of $408.42 and a 12 month high of $623.60. The firm has a 50-day simple moving average of $494.51 and a 200 day simple moving average of $548.45. The company has a market capitalization of $6.35 billion, a price-to-earnings ratio of 22.41, a P/E/G ratio of 2.40 and a beta of 0.46.

Chemed (NYSE:CHE - Get Free Report) last issued its earnings results on Tuesday, July 29th. 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 25.83% and a net margin of 11.56%. The firm had revenue of $618.80 million during the quarter, compared to the consensus estimate of $650.60 million. During the same quarter in the prior year, the business earned $5.47 earnings per share. Chemed's revenue for the quarter was up 3.8% on a year-over-year basis. On average, equities analysts forecast that Chemed Corporation will post 21.43 EPS for the current year.

Chemed Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Monday, August 11th will be paid a dividend of $0.60 per share. This is a boost from Chemed's previous quarterly dividend of $0.50. The ex-dividend date is Monday, August 11th. This represents a $2.40 annualized dividend and a yield of 0.6%. Chemed's dividend payout ratio (DPR) is 10.28%.

Insider Buying and Selling at Chemed

In related news, Director George J. Walsh III acquired 200 shares of the company's stock in a transaction on Monday, August 4th. The shares were acquired at an average cost of $417.10 per share, for a total transaction of $83,420.00. Following the purchase, the director owned 3,523 shares in the company, valued at approximately $1,469,443.30. The trade was a 6.02% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, 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 value of $866,985.00. Following the transaction, the executive vice president owned 14,627 shares in the company, valued at approximately $8,454,259.73. This trade represents a 9.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 3.29% of the company's stock.

Wall Street Analysts Forecast Growth

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

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.