Chemed Corp. (CHE) Rating Increased to Hold at Zacks Investment Research
Chemed Corp. (NYSE:CHE) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Thursday.
According to Zacks, “Chemed’s third-quarter 2016 results were a mixed bag, with its bottom line lagging the Zacks Consensus Estimate while revenues exceeded the same. Issues related to declining units for admission remain a headwind. VITAS demonstrated a sluggish show, but we are optimistic about the strong segmental performances at the company. Furthermore, the raised outlook for both the Roto-Rooter segment and bottom-line results is indicative of the fact that the company anticipates improved operating results in the upcoming quarters, therefore inspiring optimism. However, the reduced outlook for the VITAS segment displays the negative impact that CMS’ recently modified reimbursement in the Medicare hospice space had on Chemed. Moreover, headwinds like seasonality in business, a competitive landscape and dependence on government mandate continue to be challenges for Chemed.”
CHE has been the subject of several other research reports. Oppenheimer Holdings Inc. reaffirmed an “outperform” rating and set a $155.00 target price on shares of Chemed Corp. in a research note on Tuesday, September 27th. JMP Securities reaffirmed a “hold” rating on shares of Chemed Corp. in a research note on Sunday, September 4th. RBC Capital Markets reaffirmed a “sector perform” rating and set a $162.00 target price (up previously from $136.00) on shares of Chemed Corp. in a research note on Wednesday, July 27th. Finally, Royal Bank Of Canada raised their target price on Chemed Corp. from $136.00 to $162.00 and gave the company a “sector perform” rating in a research note on Wednesday, July 27th. Four investment analysts have rated the stock with a hold rating and one has issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average price target of $154.50.
Shares of Chemed Corp. (NYSE:CHE) opened at 147.43 on Thursday. The firm has a market capitalization of $2.39 billion, a PE ratio of 23.53 and a beta of 1.25. The company’s 50-day moving average is $140.00 and its 200 day moving average is $136.67. Chemed Corp. has a 52-week low of $124.77 and a 52-week high of $159.76.
Chemed Corp. (NYSE:CHE) last announced its earnings results on Wednesday, October 26th. The company reported $1.73 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.82 by $0.09. Chemed Corp. had a net margin of 6.77% and a return on equity of 23.95%. The firm had revenue of $392.61 million for the quarter, compared to the consensus estimate of $270.44 million. During the same period in the prior year, the business earned $1.78 EPS. The company’s quarterly revenue was up 1.7% compared to the same quarter last year. Equities analysts expect that Chemed Corp. will post $7.24 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, December 5th. Investors of record on Monday, November 14th will be given a $0.26 dividend. The ex-dividend date of this dividend is Wednesday, November 9th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.71%. Chemed Corp.’s dividend payout ratio (DPR) is 16.59%.
In other Chemed Corp. news, insider Spencer S. Lee sold 4,500 shares of the firm’s stock in a transaction dated Monday, November 14th. The stock was sold at an average price of $150.22, for a total transaction of $675,990.00. Following the completion of the sale, the insider now directly owns 35,367 shares in the company, valued at approximately $5,312,830.74. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Kevin J. Mcnamara sold 10,000 shares of the firm’s stock in a transaction dated Monday, October 31st. The stock was sold at an average price of $138.40, for a total value of $1,384,000.00. Following the sale, the insider now owns 189,266 shares of the company’s stock, valued at $26,194,414.40. The disclosure for this sale can be found here. 5.32% of the stock is owned by corporate insiders.
A number of large investors have recently made changes to their positions in the company. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Chemed Corp. by 147.9% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 947 shares of the company’s stock worth $129,000 after buying an additional 565 shares during the last quarter. Victory Capital Management Inc. raised its stake in shares of Chemed Corp. by 54.7% in the third quarter. Victory Capital Management Inc. now owns 1,007 shares of the company’s stock worth $142,000 after buying an additional 356 shares during the last quarter. BlackRock Inc. raised its stake in shares of Chemed Corp. by 90.4% in the first quarter. BlackRock Inc. now owns 1,152 shares of the company’s stock worth $156,000 after buying an additional 547 shares during the last quarter. Quantbot Technologies LP raised its stake in shares of Chemed Corp. by 23,940.0% in the third quarter. Quantbot Technologies LP now owns 1,202 shares of the company’s stock worth $169,000 after buying an additional 1,197 shares during the last quarter. Finally, Public Employees Retirement System of Ohio raised its stake in shares of Chemed Corp. by 3.5% in the second quarter. Public Employees Retirement System of Ohio now owns 1,319 shares of the company’s stock worth $180,000 after buying an additional 45 shares during the last quarter. Hedge funds and other institutional investors own 97.23% of the company’s stock.
Chemed Corp. Company Profile
Chemed Corporation operates and divests subsidiaries engaged in diverse business activities. The Company operates its business in two segments: the VITAS segment (VITAS) and the Roto-Rooter segment (Roto-Rooter). The Company’s VITAS segment 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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