Chemed (NYSE:CHE) Shares Down 7.2% After Earnings Miss

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

The company reported $4.68 earnings per share for the quarter, missing the consensus estimate of $5.09 by ($0.41). Chemed had a net margin of 12.03% and a return on equity of 32.29%. The business had revenue of $589.23 million during 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. Shareholders 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 annualized dividend and a yield of 0.28%. Chemed’s dividend payout ratio (DPR) is currently 8.93%.

Wall Street Analyst Weigh In

CHE has been the subject of several research reports. Oppenheimer boosted their price objective on Chemed from $625.00 to $650.00 and gave the stock an “outperform” rating in a research note on Thursday, February 29th. Royal Bank of Canada upped their price target on Chemed from $604.00 to $712.00 and gave the company an “outperform” rating in a research report on Monday, March 4th.

Insiders Place Their Bets

In other Chemed news, EVP Spencer S. Lee sold 2,000 shares of the company’s 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 transaction, the executive vice president now directly owns 20,760 shares in the company, valued at $13,320,654. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, VP Brian C. Judkins sold 11,158 shares of the company’s stock in a transaction on Wednesday, March 20th. The stock was sold at an average price of $645.00, for a total transaction of $7,196,910.00. Following the sale, the vice president now owns 1,422 shares of the company’s stock, valued at $917,190. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Spencer S. Lee sold 2,000 shares of the company’s stock in a transaction on Thursday, March 28th. The stock was 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 directly owns 20,760 shares in the company, valued at approximately $13,320,654. The disclosure for this sale can be found here. Insiders have sold 15,808 shares of company stock worth $10,184,531 over the last ninety days. Corporate insiders own 3.32% of the company’s stock.

Institutional Trading of Chemed

A number of large investors have recently modified their holdings of the stock. Kayne Anderson Rudnick Investment Management LLC increased its position in shares of Chemed by 3.4% during the third quarter. Kayne Anderson Rudnick Investment Management LLC now owns 534,123 shares of the company’s stock worth $277,584,000 after acquiring an additional 17,487 shares during the period. Wellington Management Group LLP increased its position in shares of Chemed by 0.3% during the third quarter. Wellington Management Group LLP now owns 386,237 shares of the company’s stock worth $200,727,000 after acquiring an additional 1,044 shares during the period. Impax Asset Management Group plc increased its holdings in Chemed by 4.2% in the third quarter. Impax Asset Management Group plc now owns 311,191 shares of the company’s stock valued at $161,726,000 after buying an additional 12,608 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in Chemed by 9.2% in the third quarter. JPMorgan Chase & Co. now owns 287,386 shares of the company’s stock valued at $149,355,000 after buying an additional 24,161 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. increased its holdings in Chemed by 2.2% in the third quarter. Vaughan Nelson Investment Management L.P. now owns 228,040 shares of the company’s stock valued at $118,513,000 after buying an additional 4,802 shares during the last quarter. Hedge funds and other institutional investors own 95.85% of the company’s stock.

Chemed Stock Down 7.2 %

The stock has a market cap of $8.67 billion, a PE ratio of 32.00, a price-to-earnings-growth ratio of 2.47 and a beta of 0.42. The firm has a fifty day moving average of $624.00 and a 200 day moving average of $590.66.

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.