Insider Buying: Chemed Corporation (NYSE:CHE) Director Buys 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 business's stock in a transaction that occurred on Monday, August 4th. The stock was purchased at an average price of $417.10 per share, for a total transaction of $83,420.00. Following the completion of the acquisition, the director owned 3,523 shares in the company, valued at $1,469,443.30. This represents a 6.02% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link.

Chemed Price Performance

CHE stock traded up $0.91 during midday trading on Friday, hitting $435.82. The stock had a trading volume of 149,122 shares, compared to its average volume of 180,996. The firm has a market cap of $6.35 billion, a price-to-earnings ratio of 22.41, a price-to-earnings-growth ratio of 2.40 and a beta of 0.46. The business has a 50-day moving average of $494.51 and a two-hundred day moving average of $548.41. Chemed Corporation has a 52-week low of $408.42 and a 52-week high of $623.60.

Chemed (NYSE:CHE - Get Free Report) last released its earnings results on Tuesday, July 29th. The company reported $4.27 EPS 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 the consensus estimate of $650.60 million. Chemed had a return on equity of 25.83% and a net margin of 11.56%. The company's revenue was up 3.8% compared to the same quarter last year. During the same period last year, the firm posted $5.47 earnings per share. Research 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. Investors of record on Monday, August 11th will be given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 0.6%. This is a boost from Chemed's previous quarterly dividend of $0.50. The ex-dividend date is Monday, August 11th. Chemed's dividend payout ratio (DPR) is currently 10.28%.

Institutional Trading of Chemed

Hedge funds have recently bought and sold shares of the company. Whipplewood Advisors LLC grew its position in shares of Chemed by 54.5% during the first quarter. Whipplewood Advisors LLC now owns 51 shares of the company's stock worth $31,000 after purchasing an additional 18 shares in the last quarter. Renasant Bank boosted its stake 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 last quarter. Impact Capital Partners LLC boosted its stake in Chemed by 2.7% during the first quarter. Impact Capital Partners LLC now owns 763 shares of the company's stock valued at $469,000 after buying an additional 20 shares during the last quarter. Cim LLC boosted its stake in Chemed by 1.0% during the first quarter. Cim LLC now owns 2,029 shares of the company's stock valued at $1,248,000 after buying an additional 21 shares during the last quarter. Finally, CIBC Private Wealth Group LLC boosted its stake in Chemed by 13.5% during the fourth quarter. CIBC Private Wealth Group LLC now owns 185 shares of the company's stock valued at $98,000 after buying an additional 22 shares during the last quarter. Hedge funds and other institutional investors own 95.85% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Royal Bank Of Canada decreased their price objective on Chemed from $640.00 to $589.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Oppenheimer reduced 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. Wall Street Zen lowered Chemed from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Bank of America reduced their target price on Chemed from $708.00 to $650.00 and set a "buy" rating for the company in a report on Monday, June 30th. Finally, Jefferies Financial Group began coverage on Chemed in a research report on Friday, July 25th. They set a "hold" rating and a $500.00 price target for the company. Two research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the company presently 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.