Chemed Corp. (CHE) Rating Lowered to Hold at Zacks Investment Research
Chemed Corp. (NYSE:CHE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Following its promising second quarter 2017 performance, Chemed has been observed to trade above the broader industry over the past six months. 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 over the recent past banking on strong performance within its core plumbing and drain cleaning service segments, as well as solid growth in water restoration. 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 intensify pricing pressure. Also, a tweaked guidance for Medicare Cap billing limitations raises concern.”
A number of other equities research analysts also recently commented on the company. Royal Bank Of Canada reissued a “hold” rating and issued a $209.00 target price on shares of Chemed Corp. in a report on Friday, September 1st. KeyCorp assumed coverage on Chemed Corp. in a report on Monday, August 28th. They issued a “sector weight” rating for the company. BidaskClub downgraded Chemed Corp. from a “buy” rating to a “hold” rating in a report on Wednesday, August 2nd. Oppenheimer Holdings, Inc. raised their target price on Chemed Corp. from $200.00 to $220.00 and gave the company an “outperform” rating in a report on Thursday, July 27th. Finally, TheStreet downgraded Chemed Corp. from a “b+” rating to a “c+” rating in a report on Tuesday, July 25th. Three research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Chemed Corp. presently has a consensus rating of “Hold” and an average price target of $214.00.
Shares of Chemed Corp. (CHE) opened at 193.32 on Wednesday. The stock’s 50 day moving average is $193.87 and its 200-day moving average is $195.60. The stock has a market cap of $3.09 billion, a price-to-earnings ratio of 47.96 and a beta of 1.14. Chemed Corp. has a 12-month low of $132.92 and a 12-month high of $216.01.
Chemed Corp. (NYSE:CHE) last released its earnings results on Tuesday, July 25th. The company reported $2.15 EPS for the quarter, beating analysts’ consensus estimates of $1.89 by $0.26. Chemed Corp. had a return on equity of 26.18% and a net margin of 4.16%. The company had revenue of $415.06 million during the quarter, compared to the consensus estimate of $407.56 million. During the same quarter last year, the company earned $1.80 earnings per share. Chemed Corp.’s quarterly revenue was up 6.3% compared to the same quarter last year. Equities analysts anticipate that Chemed Corp. will post $8.21 EPS for the current fiscal year.
In other news, insider Kevin J. Mcnamara sold 15,000 shares of the firm’s stock in a transaction on Friday, July 28th. The stock was sold at an average price of $201.16, for a total value of $3,017,400.00. Following the completion of the transaction, the insider now owns 173,801 shares in the company, valued at $34,961,809.16. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director George J. Walsh III purchased 1,000 shares of the company’s stock in a transaction dated Monday, June 26th. The stock was purchased at an average price of $204.56 per share, with a total value of $204,560.00. Following the transaction, the director now owns 7,908 shares of the company’s stock, valued at $1,617,660.48. The disclosure for this purchase can be found here. Company insiders own 5.32% of the company’s stock.
Hedge funds have recently made changes to their positions in the company. Acrospire Investment Management LLC purchased a new position in shares of Chemed Corp. in the second quarter valued at $120,000. Glen Harbor Capital Management LLC increased its position in shares of Chemed Corp. by 11.4% in the first quarter. Glen Harbor Capital Management LLC now owns 624 shares of the company’s stock valued at $114,000 after buying an additional 64 shares in the last quarter. Pacad Investment Ltd. increased its position in shares of Chemed Corp. by 250.0% in the second quarter. Pacad Investment Ltd. now owns 700 shares of the company’s stock valued at $143,000 after buying an additional 500 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of Chemed Corp. by 12.8% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 731 shares of the company’s stock valued at $150,000 after buying an additional 83 shares in the last quarter. Finally, Tyers Asset Management LLC increased its position in shares of Chemed Corp. by 11.4% in the first quarter. Tyers Asset Management LLC now owns 858 shares of the company’s stock valued at $157,000 after buying an additional 88 shares in the last quarter. Institutional investors and hedge funds own 96.96% of the company’s stock.
Chemed Corp. Company Profile
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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