Chemed (NYSE:CHE) Sets New 52-Week Low on Disappointing Earnings

Chemed Corporation (NYSE:CHE) hit a new 52-week low during mid-day trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $410.00 and last traded at $432.38, with a volume of 48821 shares traded. The stock had previously closed at $464.69.

The company reported $4.27 EPS for the quarter, missing analysts’ consensus estimates of $6.02 by ($1.75). Chemed had a return on equity of 25.94% and a net margin of 11.56%. The company had revenue of $618.80 million for the quarter, compared to analyst estimates of $650.60 million. During the same quarter in the prior year, the firm earned $5.47 EPS. The company’s revenue for the quarter was up 3.8% compared to the same quarter last year.

Chemed Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 17th. Investors of record on Thursday, May 29th were paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 0.48%. The ex-dividend date of this dividend was Thursday, May 29th. Chemed’s dividend payout ratio (DPR) is 9.74%.

Analyst Upgrades and Downgrades

Several research firms recently commented on CHE. Wall Street Zen cut Chemed from a “buy” rating to a “hold” rating in a research note on Saturday, July 5th. Bank of America cut their price target on Chemed from $708.00 to $650.00 and set a “buy” rating on the stock in a research note on Monday, June 30th. Jefferies Financial Group began coverage on Chemed in a research note on Friday, July 25th. They issued a “hold” rating and a $500.00 price target on the stock. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $640.00 price target (down previously from $674.00) on shares of Chemed in a research note on Monday, June 30th.

Insider Activity at Chemed

In other Chemed news, EVP Spencer S. Lee sold 1,500 shares of the company’s stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $577.99, for a total transaction of $866,985.00. Following the sale, the executive vice president owned 14,627 shares in the company, valued at $8,454,259.73. This represents a 9.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Kevin J. Mcnamara sold 1,500 shares of the company’s stock in a transaction that occurred on Monday, May 5th. The shares were sold at an average price of $576.45, for a total value of $864,675.00. Following the sale, the chief executive officer owned 101,197 shares in the company, valued at $58,335,010.65. The trade was a 1.46% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 4,500 shares of company stock worth $2,598,450 in the last 90 days. 3.29% of the stock is currently owned by insiders.

Institutional Trading of Chemed

Institutional investors and hedge funds have recently bought and sold shares of the company. Norges Bank bought a new position in shares of Chemed during the fourth quarter valued at approximately $95,872,000. GAMMA Investing LLC grew its holdings in shares of Chemed by 131,200.8% during the first quarter. GAMMA Investing LLC now owns 166,752 shares of the company’s stock valued at $102,606,000 after purchasing an additional 166,625 shares during the last quarter. Freestone Grove Partners LP bought a new position in shares of Chemed during the fourth quarter valued at approximately $61,664,000. Point72 Asset Management L.P. bought a new position in shares of Chemed during the fourth quarter valued at approximately $54,587,000. Finally, Fuller & Thaler Asset Management Inc. grew its holdings in shares of Chemed by 249.3% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 130,037 shares of the company’s stock valued at $80,015,000 after purchasing an additional 92,813 shares during the last quarter. Institutional investors and hedge funds own 95.85% of the company’s stock.

Chemed Price Performance

The company has a market capitalization of $6.09 billion, a P/E ratio of 21.40, a price-to-earnings-growth ratio of 2.25 and a beta of 0.50. The company has a fifty day moving average price of $517.94 and a 200 day moving average price of $555.29.

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.