Zacks Investment Research Upgrades Chemed Corp. (CHE) to “Buy”
Chemed Corp. (NYSE:CHE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Thursday. The brokerage currently has a $251.00 price objective on the stock. Zacks Investment Research‘s price objective would suggest a potential upside of 12.34% from the stock’s current price.
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”
CHE has been the subject of a number of other reports. Royal Bank Of Canada raised their target price on shares of Chemed Corp. to $232.00 and gave the stock a “sector perform” rating in a report on Tuesday. TheStreet upgraded shares of Chemed Corp. from a “c+” rating to an “a-” rating in a report on Friday, October 27th. Oppenheimer Holdings, Inc. raised their target price on shares of Chemed Corp. from $220.00 to $225.00 and gave the stock an “outperform” rating in a report on Friday, October 27th. KeyCorp restated a “hold” rating on shares of Chemed Corp. in a report on Friday, October 27th. Finally, BidaskClub cut shares of Chemed Corp. from a “buy” rating to a “hold” rating in a report on Wednesday, August 2nd. Three investment analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $236.00.
Chemed Corp. (NYSE:CHE) last posted its quarterly earnings data on Thursday, October 26th. The company reported $2.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.00 by $0.15. The business had revenue of $417.40 million during the quarter, compared to analysts’ expectations of $414.34 million. Chemed Corp. had a net margin of 4.62% and a return on equity of 27.69%. The business’s revenue was up 6.3% on a year-over-year basis. During the same period last year, the firm posted $1.73 earnings per share.
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In related news, CEO Kevin J. Mcnamara sold 10,000 shares of the company’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 owns 170,016 shares in the company, valued at approximately $37,984,974.72. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Spencer S. Lee sold 1,000 shares of the company’s stock in a transaction that occurred on 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 sale, the insider now owns 37,809 shares of the company’s stock, valued at approximately $7,465,765.14. The disclosure for this sale can be found here. In the last 90 days, insiders sold 12,250 shares of company stock valued at $2,698,968. 4.90% of the stock is owned by insiders.
A number of hedge funds have recently added to or reduced their stakes in CHE. Glen Harbor Capital Management LLC lifted its position in Chemed Corp. by 11.4% in the 1st quarter. Glen Harbor Capital Management LLC now owns 624 shares of the company’s stock worth $114,000 after buying an additional 64 shares in the last quarter. Acrospire Investment Management LLC bought a new position in shares of Chemed Corp. during the 2nd quarter valued at $120,000. Tyers Asset Management LLC bought a new position in shares of Chemed Corp. during the 4th quarter valued at $124,000. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of Chemed Corp. by 147.9% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 947 shares of the company’s stock valued at $129,000 after purchasing an additional 565 shares in the last quarter. Finally, TrimTabs Asset Management LLC raised its holdings in shares of Chemed Corp. by 88.7% during the 1st quarter. TrimTabs Asset Management LLC now owns 732 shares of the company’s stock valued at $134,000 after purchasing an additional 344 shares in the last quarter. Institutional investors own 97.24% 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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