Chemed Corp. (CHE) Lifted to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Chemed Corp. (NYSE:CHE) from a hold rating to a buy rating in a research note issued to investors on Thursday. They currently have $251.00 price target on the stock.
According to Zacks, “Chemed exited the third quarter 2017 on a promising note with earnings and revenues ahead of the respective Zacks Consensus Estimate. The company’s both the subsidiaries saw year-over-year revenue growth. Also, the guidance raise backed by the company's expectations of significant gains from its Roto-Rooter business buoys optimism. This business has witnessed consistent growth banking on strong performance within core plumbing and drain cleaning service segments, as well as solid growth in water restoration. The expansion in gross and operating margin buoy optimism. Chemed has been observed to trade above the broader industry over the past three months. However, headwinds like reimbursement related issues, seasonality in business, a competitive landscape and dependence on government mandate pose challenges for Chemed. Moreover, over 90% of VITAS’ revenues consist of payments from the Medicare and Medicaid programs which further intensif”
A number of other equities analysts have also commented on the company. Royal Bank Of Canada increased their price target on Chemed Corp. to $232.00 and gave the company a sector perform rating in a research note on Tuesday, October 31st. TheStreet raised Chemed Corp. from a c+ rating to an a- rating in a research note on Friday, October 27th. Oppenheimer Holdings, Inc. increased their price target on Chemed Corp. from $220.00 to $225.00 and gave the company an outperform rating in a research note on Friday, October 27th. KeyCorp reissued a hold rating on shares of Chemed Corp. in a research note on Friday, October 27th. Finally, BidaskClub lowered Chemed Corp. from a buy rating to a hold rating in a research note on Wednesday, August 2nd. Three analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. Chemed Corp. presently has a consensus rating of Hold and a consensus price target of $236.00.
Chemed Corp. (NYSE:CHE) traded down $3.36 on Thursday, reaching $231.65. 127,647 shares of the company traded hands, compared to its average volume of 96,024. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.50 and a quick ratio of 0.48. The firm has a market cap of $3,752.17, a P/E ratio of 28.94, a PEG ratio of 4.97 and a beta of 1.14.
Chemed Corp. (NYSE:CHE) last announced its quarterly earnings results on Thursday, October 26th. The company reported $2.15 EPS for the quarter, beating analysts’ consensus estimates of $2.00 by $0.15. Chemed Corp. had a return on equity of 27.69% and a net margin of 4.62%. The company had revenue of $417.40 million during the quarter, compared to analyst estimates of $414.34 million. During the same period in the prior year, the company earned $1.73 earnings per share. The firm’s revenue was up 6.3% on a year-over-year basis. analysts expect that Chemed Corp. will post 4.73 EPS for the current fiscal year.
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The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 4th. Stockholders of record on Monday, November 13th will be paid a $0.28 dividend. This represents a $1.12 annualized dividend and a dividend yield of 0.48%. The ex-dividend date of this dividend is Friday, November 10th. Chemed Corp.’s payout ratio is 24.89%.
In other news, Director Donald E. Saunders sold 500 shares of the firm’s stock in a transaction that occurred on Thursday, November 2nd. The stock was sold at an average price of $227.75, for a total value of $113,875.00. Following the completion of the sale, the director now directly owns 10,298 shares of the company’s stock, valued at approximately $2,345,369.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Kevin J. Mcnamara sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, October 31st. The shares were sold at an average price of $223.42, for a total value of $2,234,200.00. Following the completion of the sale, the chief executive officer now directly owns 170,016 shares of the company’s stock, valued at $37,984,974.72. The disclosure for this sale can be found here. Insiders sold a total of 13,750 shares of company stock valued at $3,041,293 over the last ninety days. Corporate insiders own 4.90% of the company’s stock.
Several large investors have recently bought and sold shares of the company. Teacher Retirement System of Texas lifted its stake in shares of Chemed Corp. by 341.5% in the 3rd quarter. Teacher Retirement System of Texas now owns 5,744 shares of the company’s stock valued at $1,161,000 after purchasing an additional 4,443 shares during the last quarter. Rhumbline Advisers lifted its stake in shares of Chemed Corp. by 19.3% in the 3rd quarter. Rhumbline Advisers now owns 50,493 shares of the company’s stock valued at $10,202,000 after purchasing an additional 8,172 shares during the last quarter. Advisor Group Inc. lifted its stake in shares of Chemed Corp. by 9.7% in the 3rd quarter. Advisor Group Inc. now owns 4,401 shares of the company’s stock valued at $889,000 after purchasing an additional 389 shares during the last quarter. Los Angeles Capital Management & Equity Research Inc. lifted its stake in shares of Chemed Corp. by 63.7% in the 3rd quarter. Los Angeles Capital Management & Equity Research Inc. now owns 10,694 shares of the company’s stock valued at $2,161,000 after purchasing an additional 4,160 shares during the last quarter. Finally, Municipal Employees Retirement System of Michigan lifted its stake in shares of Chemed Corp. by 56.6% in the 3rd quarter. Municipal Employees Retirement System of Michigan now owns 6,030 shares of the company’s stock valued at $1,218,000 after purchasing an additional 2,180 shares during the last quarter. 97.29% of the stock is owned by institutional investors and hedge funds.
About Chemed Corp.
Chemed Corporation purchases, operates and divests subsidiaries engaged in various business activities. The Company operates through two segments: the VITAS segment (VITAS) and the Roto-Rooter segment (Roto-Rooter). The Company’s VITAS provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers.
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