Vanguard Group Inc. Sells 28,554 Shares of Chemed Corporation (NYSE:CHE)

Key Points

• Vanguard Group Inc. reduced its stake in Chemed Corporation by 1.7%, now owning approximately 11.21% of the company, amounting to over $1 billion in value.
• Chemed's recent quarterly earnings report showed an EPS of $4.27, which missed estimates by a significant margin, and subsequent revenue of $618.80 million, which also fell short of forecasts.
• The company recently increased its quarterly dividend from $0.50 to $0.60 per share, reflecting a positive change in its distribution policy.

Vanguard Group Inc. cut its position in Chemed Corporation (NYSE:CHE - Free Report) by 1.7% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,640,567 shares of the company's stock after selling 28,554 shares during the quarter. Vanguard Group Inc. owned about 11.21% of Chemed worth $1,009,474,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Whipplewood Advisors LLC raised its holdings in Chemed by 54.5% in the 1st quarter. Whipplewood Advisors LLC now owns 51 shares of the company's stock valued at $31,000 after acquiring an additional 18 shares in the last quarter. Renasant Bank raised its holdings in Chemed by 2.3% in the 1st quarter. Renasant Bank now owns 815 shares of the company's stock valued at $501,000 after acquiring an additional 18 shares in the last quarter. Impact Capital Partners LLC raised its holdings in Chemed by 2.7% in the 1st quarter. Impact Capital Partners LLC now owns 763 shares of the company's stock valued at $469,000 after acquiring an additional 20 shares in the last quarter. KFG Wealth Management LLC raised its holdings in Chemed by 4.6% in the 1st quarter. KFG Wealth Management LLC now owns 525 shares of the company's stock valued at $323,000 after acquiring an additional 23 shares in the last quarter. Finally, First Horizon Advisors Inc. raised its holdings in Chemed by 16.1% in the 1st quarter. First Horizon Advisors Inc. now owns 173 shares of the company's stock valued at $107,000 after acquiring an additional 24 shares in the last quarter. 95.85% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, Director George J. Walsh III purchased 200 shares of the firm's stock in a transaction dated Monday, August 4th. The stock was bought at an average price of $417.10 per share, with a total value of $83,420.00. Following the completion of the purchase, the director owned 3,523 shares in the company, valued at approximately $1,469,443.30. This represents a 6.02% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Nicholas Michael Westfall sold 10,012 shares of the stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $421.91, for a total value of $4,224,162.92. The disclosure for this sale can be found here. Corporate insiders own 3.29% of the company's stock.

Chemed Trading Up 0.3%

CHE traded up $1.13 on Friday, reaching $445.00. The stock had a trading volume of 177,141 shares, compared to its average volume of 192,563. Chemed Corporation has a fifty-two week low of $408.42 and a fifty-two week high of $623.60. The firm has a 50-day moving average of $482.43 and a 200-day moving average of $544.53. The company has a market capitalization of $6.48 billion, a price-to-earnings ratio of 22.88, a price-to-earnings-growth ratio of 2.45 and a beta of 0.46.

Chemed (NYSE:CHE - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $4.27 earnings per share for the quarter, missing the consensus estimate of $6.02 by ($1.75). The company had revenue of $618.80 million during the quarter, compared to analyst estimates of $650.60 million. Chemed had a net margin of 11.56% and a return on equity of 25.83%. The company's quarterly revenue was up 3.8% on a year-over-year basis. During the same period in the previous year, the company posted $5.47 EPS. Sell-side analysts anticipate that Chemed Corporation will post 21.43 EPS for the current fiscal year.

Chemed Increases Dividend

The business also recently declared 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. The ex-dividend date of this dividend is Monday, August 11th. This is a positive change from Chemed's previous quarterly dividend of $0.50. This represents a $2.40 annualized dividend and a dividend yield of 0.5%. Chemed's payout ratio is currently 12.34%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Oppenheimer dropped their price objective on Chemed from $650.00 to $580.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Bank of America lowered 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 initiated coverage on Chemed in a report on Friday, July 25th. They set a "hold" rating and a $500.00 price target for the company. Wall Street Zen cut Chemed from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Finally, Royal Bank Of Canada lowered their price target on Chemed from $640.00 to $589.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Two investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat.com, Chemed presently has a consensus rating of "Moderate Buy" and a consensus price target 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.