Vanguard Group Inc. Lowers Stock Position in 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. lowered its position in shares of Chemed Corporation (NYSE:CHE - Free Report) by 1.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. 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 quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Renasant Bank lifted its position in Chemed by 2.3% during the first quarter. Renasant Bank now owns 815 shares of the company's stock valued at $501,000 after buying an additional 18 shares during the period. Commerce Bank increased its holdings in shares of Chemed by 246.6% during the first quarter. Commerce Bank now owns 5,216 shares of the company's stock valued at $3,210,000 after acquiring an additional 3,711 shares in the last quarter. Bayforest Capital Ltd bought a new position in shares of Chemed during the first quarter valued at $616,000. Mackenzie Financial Corp increased its holdings in shares of Chemed by 1.4% during the first quarter. Mackenzie Financial Corp now owns 4,694 shares of the company's stock valued at $2,888,000 after acquiring an additional 65 shares in the last quarter. Finally, LPL Financial LLC increased its holdings in shares of Chemed by 12.7% during the first quarter. LPL Financial LLC now owns 10,527 shares of the company's stock valued at $6,477,000 after acquiring an additional 1,185 shares in the last quarter. Hedge funds and other institutional investors own 95.85% of the company's stock.

Insider Buying and Selling

In other Chemed news, EVP Spencer S. Lee sold 1,500 shares of the business's stock in a transaction dated 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 directly owned 14,627 shares in the company, valued at $8,454,259.73. The trade was a 9.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Nicholas Michael Westfall sold 10,012 shares of Chemed 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. 3.29% of the stock is owned by corporate insiders.

Chemed Stock Performance

NYSE CHE opened at $432.47 on Tuesday. Chemed Corporation has a one year low of $408.42 and a one year high of $623.60. The stock has a 50-day moving average of $491.79 and a 200 day moving average of $547.62. The company has a market capitalization of $6.30 billion, a price-to-earnings ratio of 22.23, a PEG ratio of 2.40 and a beta of 0.46.

Chemed (NYSE:CHE - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The company reported $4.27 EPS for the quarter, missing the consensus estimate of $6.02 by ($1.75). Chemed had a return on equity of 25.83% 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 quarter in the previous year, the business posted $5.47 earnings per share. Chemed's quarterly revenue was up 3.8% compared to the same quarter last year. On average, equities analysts predict that Chemed Corporation will post 21.43 earnings per share for the current fiscal year.

Chemed Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Monday, August 11th will be issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 0.6%. The ex-dividend date is Monday, August 11th. This is a positive change from Chemed's previous quarterly dividend of $0.50. Chemed's dividend payout ratio is 10.28%.

Analyst Ratings Changes

CHE has been the subject of several analyst reports. Oppenheimer reduced their price target on Chemed from $650.00 to $580.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Wall Street Zen downgraded Chemed from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Royal Bank Of Canada reduced 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. 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. Finally, Bank of America reduced 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. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus 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.

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