Zacks Investment Research Lowers Chemed Corp. (CHE) to Hold
Chemed Corp. (NYSE:CHE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Over the past six months, Chemed has been trading above the broader industry. Chemed’s last reported second-quarter 2017 performance was quite promising with the bottom line significantly improving on a year-over-year basis. Moreover, encouraging revenue growth and the raised guidance for 2017 are indicative of brighter prospects. In fact, the guidance raise was backed by the company expectations of significant gains from its Roto-Rooter business. Notably, the improvement in average net Medicare reimbursement rate and increase in average daily census are also impressive. However, headwinds like reimbursement related issues, seasonality in business, a competitive landscape and dependence on government mandate pose challenges for Chemed. Also, a tweaked guidance for Medicare Cap billing limitations raises concern.”
CHE has been the subject of several other research reports. Royal Bank Of Canada reiterated a “hold” rating and issued a $208.00 price objective on shares of Chemed Corp. in a research note on Wednesday, July 5th. BidaskClub cut shares of Chemed Corp. from a “strong-buy” rating to a “buy” rating in a research note on Thursday, June 22nd. Oppenheimer Holdings, Inc. raised their price objective on shares of Chemed Corp. from $200.00 to $220.00 and gave the company an “outperform” rating in a research note on Thursday, July 27th. KeyCorp assumed coverage on shares of Chemed Corp. in a research note on Monday, August 28th. They issued a “sector weight” rating for the company. Finally, TheStreet cut shares of Chemed Corp. from a “b+” rating to a “c+” rating in a research note on Tuesday, July 25th. Three equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average price target of $214.00.
Chemed Corp. (CHE) traded down 0.51% on Wednesday, hitting $192.46. 95,414 shares of the company traded hands. Chemed Corp. has a 12 month low of $132.92 and a 12 month high of $216.01. The stock has a market cap of $3.08 billion, a PE ratio of 47.74 and a beta of 1.14. The stock’s 50-day moving average is $195.02 and its 200 day moving average is $195.17.
Chemed Corp. (NYSE:CHE) last announced its quarterly earnings data on Tuesday, July 25th. The company reported $2.15 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.89 by $0.26. Chemed Corp. had a net margin of 4.16% and a return on equity of 26.18%. The firm had revenue of $415.06 million during the quarter, compared to analysts’ expectations of $407.56 million. During the same quarter last year, the business earned $1.80 earnings per share. The business’s revenue for the quarter was up 6.3% compared to the same quarter last year. Equities research analysts expect that Chemed Corp. will post $8.21 earnings per share for the current fiscal year.
In other Chemed Corp. news, insider Spencer S. Lee sold 1,000 shares of Chemed Corp. stock in a transaction dated Friday, September 1st. The shares were sold at an average price of $197.46, for a total transaction of $197,460.00. Following the completion of the transaction, the insider now owns 37,809 shares in the company, valued at $7,465,765.14. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Kevin J. Mcnamara sold 15,000 shares of Chemed Corp. stock in a transaction dated Friday, July 28th. The stock was sold at an average price of $201.16, for a total transaction of $3,017,400.00. Following the transaction, the insider now owns 173,801 shares of the company’s stock, valued at approximately $34,961,809.16. The disclosure for this sale can be found here. Insiders own 5.32% of the company’s stock.
Institutional investors and hedge funds have recently made changes to their positions in the business. Acrospire Investment Management LLC acquired a new position in Chemed Corp. during the second quarter worth about $120,000. Glen Harbor Capital Management LLC raised its position in Chemed Corp. by 11.4% during the first quarter. Glen Harbor Capital Management LLC now owns 624 shares of the company’s stock worth $114,000 after acquiring an additional 64 shares during the last quarter. Pacad Investment Ltd. raised its position in Chemed Corp. by 250.0% during the second quarter. Pacad Investment Ltd. now owns 700 shares of the company’s stock worth $143,000 after acquiring an additional 500 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its position in Chemed Corp. by 12.8% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 731 shares of the company’s stock worth $150,000 after acquiring an additional 83 shares during the last quarter. Finally, TrimTabs Asset Management LLC raised its position in shares of Chemed Corp. by 88.7% in the first quarter. TrimTabs Asset Management LLC now owns 732 shares of the company’s stock valued at $134,000 after buying an additional 344 shares during the last quarter. Institutional investors 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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