Insider Buying: Chemed Corporation (NYSE:CHE) Director Purchases 200 Shares of Stock

Key Points

• Chemed Corporation's Director George J. Walsh III purchased 200 shares at an average price of $417.10 per share, increasing his ownership to 3,523 shares, valued at approximately $1.47 million.
• The company announced a quarterly dividend increase to $0.60 per share, showing a commitment to returning value to shareholders.
• Analysts have adjusted price targets for Chemed, with the average target now at $579.75, reflecting mixed sentiment towards the stock's future performance.

Chemed Corporation (NYSE:CHE - Get Free Report) Director George J. Walsh III bought 200 shares of the stock in a transaction on Monday, August 4th. The stock was purchased 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 of the company's stock, valued at $1,469,443.30. This represents a 6.02% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link.

Chemed Trading Up 1.4%

Shares of CHE stock traded up $5.77 during trading hours on Tuesday, hitting $429.10. The company's stock had a trading volume of 144,422 shares, compared to its average volume of 135,812. The stock has a market cap of $6.28 billion, a PE ratio of 22.06, a price-to-earnings-growth ratio of 2.30 and a beta of 0.46. The company has a 50 day moving average of $505.95 and a 200 day moving average of $551.83. 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 posted 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). The business had revenue of $618.80 million for 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 revenue for the quarter was up 3.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.47 earnings per share. As a group, analysts anticipate that Chemed Corporation will post 21.43 earnings per share for the current fiscal year.

Chemed Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Monday, August 11th will be given a dividend of $0.60 per share. This is a boost from Chemed's previous quarterly dividend of $0.50. This represents a $2.40 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Monday, August 11th. Chemed's payout ratio is presently 10.28%.

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. American Century Companies Inc. raised its position in shares of Chemed by 1.4% in the fourth quarter. American Century Companies Inc. now owns 3,977 shares of the company's stock worth $2,107,000 after acquiring an additional 54 shares during the period. CIBC Private Wealth Group LLC raised its position in shares of Chemed by 13.5% in the fourth quarter. CIBC Private Wealth Group LLC now owns 185 shares of the company's stock worth $98,000 after acquiring an additional 22 shares during the period. Franklin Resources Inc. raised its position in shares of Chemed by 18.6% in the fourth quarter. Franklin Resources Inc. now owns 10,436 shares of the company's stock worth $5,529,000 after acquiring an additional 1,636 shares during the period. Geode Capital Management LLC raised its position in shares of Chemed by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 340,409 shares of the company's stock worth $180,654,000 after acquiring an additional 4,966 shares during the period. Finally, Prudential PLC raised its position in shares of Chemed by 17.6% in the fourth quarter. Prudential PLC now owns 3,521 shares of the company's stock worth $1,865,000 after acquiring an additional 528 shares during the period. 95.85% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.