Chemed (NYSE:CHE) Shares Down 7.2% on Disappointing Earnings

Chemed Co. (NYSE:CHE)’s share price was down 7.2% during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $561.00 and last traded at $573.47. Approximately 71,152 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 77,294 shares. The stock had previously closed at $617.95.

The company reported $4.68 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.09 by ($0.41). Chemed had a return on equity of 31.69% and a net margin of 12.36%. The business had revenue of $589.23 million for the quarter, compared to analysts’ expectations of $587.18 million.

Chemed Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 15th. Stockholders of record on Monday, February 26th were paid a dividend of $0.40 per share. The ex-dividend date was Friday, February 23rd. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.29%. Chemed’s payout ratio is 8.61%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on CHE shares. Royal Bank of Canada raised their price objective on shares of Chemed from $604.00 to $712.00 and gave the stock an “outperform” rating in a research note on Monday, March 4th. StockNews.com cut shares of Chemed from a “buy” rating to a “hold” rating in a research note on Friday. Finally, Oppenheimer raised their price objective on shares of Chemed from $625.00 to $650.00 and gave the stock an “outperform” rating in a research note on Thursday, February 29th.

Insider Activity at Chemed

In related news, EVP Spencer S. Lee sold 2,000 shares of Chemed stock in a transaction on Thursday, March 28th. The shares were sold at an average price of $641.65, for a total value of $1,283,300.00. Following the sale, the executive vice president now owns 20,760 shares of the company’s stock, valued at approximately $13,320,654. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Chemed news, CFO Michael D. Witzeman sold 2,650 shares of Chemed stock in a transaction on Thursday, March 21st. The shares were sold at an average price of $643.14, for a total transaction of $1,704,321.00. Following the sale, the chief financial officer now owns 2,882 shares of the company’s stock, valued at approximately $1,853,529.48. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Spencer S. Lee sold 2,000 shares of Chemed stock in a transaction on Thursday, March 28th. The stock was sold at an average price of $641.65, for a total transaction of $1,283,300.00. Following the sale, the executive vice president now directly owns 20,760 shares in the company, valued at approximately $13,320,654. The disclosure for this sale can be found here. In the last quarter, insiders have sold 15,808 shares of company stock valued at $10,184,531. 3.32% of the stock is owned by company insiders.

Institutional Investors Weigh In On Chemed

Several institutional investors and hedge funds have recently added to or reduced their stakes in CHE. Rise Advisors LLC acquired a new stake in Chemed during the 1st quarter worth $26,000. GAMMA Investing LLC acquired a new stake in Chemed during the 4th quarter worth $37,000. Larson Financial Group LLC acquired a new stake in Chemed during the 3rd quarter worth $44,000. Legacy Financial Group LLC acquired a new stake in Chemed during the 3rd quarter worth $48,000. Finally, Principal Securities Inc. acquired a new stake in Chemed during the 4th quarter worth $51,000. Institutional investors and hedge funds own 95.85% of the company’s stock.

Chemed Trading Down 2.3 %

The firm has a fifty day moving average price of $623.76 and a 200 day moving average price of $590.54. The firm has a market cap of $8.47 billion, a PE ratio of 30.16, a price-to-earnings-growth ratio of 2.48 and a beta of 0.42.

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.