Nordea Investment Management AB, an institutional investor, has increased its stake in Chemed Co. (NYSE: CHE) by 4.3% during the second quarter of this year, according to a recent filing with the Securities & Exchange Commission. The company now holds 16,779 shares after acquiring an additional 687 shares in that period. This represents approximately 0.11% ownership of Chemed and is valued at $9,003,000 as of the end of the second quarter.
Chemed, a leading healthcare services provider, recently announced its earnings results for the second quarter ending July 26th. The company reported earnings per share (EPS) of $4.71 for the quarter, falling short of analysts’ consensus estimate by $0.38. Despite missing expectations, Chemed maintained a net margin of 10.36% and a return on equity of 34.65%. The company generated revenue of $553.80 million during the same period, which was slightly lower than the consensus estimate of $562.54 million.
Although Chemed’s EPS for this quarter declined compared to last year’s figure of $4.84, its revenue showed modest growth with a 4.2% increase year-over-year. Analysts project that Chemed will report EPS of $19.14 for the full fiscal year.
Recent reports from equities research analysts shed new light on Chemed’s performance and prospects. StockNews.com upgraded their rating from “hold” to “buy” in a research report released on August 30th, indicating confidence in the company’s future success. Similarly, Royal Bank of Canada revised their target price downward from $610 to $576 but maintained an “outperform” rating for Chemed in their research report published on July 31st.
Chemed operates through two principal segments: VITAS Healthcare and Roto-Rooter services and franchises. VITAS Healthcare is the nation’s leading provider of end-of-life hospice care, while Roto-Rooter is the largest provider of plumbing repair and drain cleaning services in North America. The company’s strong market presence, coupled with its focus on delivering high-quality services, positions it well for future growth.
In conclusion, Nordea Investment Management AB has increased its stake in Chemed Co., reflecting confidence in the company’s performance. Chemed’s recent earnings report demonstrated solid revenue growth despite slightly lower EPS than projected. Analysts’ reports have provided mixed ratings, with StockNews.com upgrading Chemed to a “buy” rating and Royal Bank of Canada maintaining an “outperform” rating. With its dominant position in the healthcare and plumbing industries, Chemed appears poised for continued success in the coming years.
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Surprising Investor Shifts and CEO Share Sale Unravel Intriguing Developments at Chemed Co.
Intriguing Developments in Chemed: Investor Changes and CEO Share Sale
September 20, 2023
Chemed Co., a prominent healthcare services company, has recently witnessed several interesting developments that have left industry experts bewildered. In the first quarter of this year, Psagot Value Holdings Ltd. Israel surprised many by increasing their position in Chemed shares by an astonishing 39.5%. This move resulted in Psagot now owning 600 shares of the company’s stock valued at $314,000 after acquiring an additional 170 shares last quarter.
Simultaneously, State Board of Administration of Florida Retirement System modified its stance on Chemed as well. They increased their position in the company by 8.6% during the first quarter, bringing their ownership to a total of 15,920 shares worth $8,561,000 following an acquisition of an extra 1,260 shares.
EP Wealth Advisors LLC ventured into the Chemed market for the first time during the same quarter with a new stake amounting to $650,000. Ontario Teachers Pension Plan Board also made significant strides by raising its position in Chemed by a staggering 152.8%, equating to owning 2,887 shares valued at $1,552,000 after adding an additional 1,745 shares in previous months.
Finally, Toroso Investments LLC contributed to the perplexity surrounding investor behavior by increasing its position in Chemed by an impressive 44.6%, obtaining 1,621 more shares worth $872,000 during the first quarter alone. These actions taken by institutional investors account for a massive majority—94.25%—of Chemed’s stock ownership.
Despite these surprising investor changes and movements within the company’s shareholders’ ranks, another intriguing occurrence emerged when Chief Executive Officer Kevin J. Mcnamara sold a notable amount of his own holdings in Chemed. On Thursday, August 3rd, Mcnamara completed a transaction selling 4,000 shares of Chemed stock at an average price of $516.43, totaling an impressive $2,065,720.00 in value. Following the sale, Mcnamara still retains a sizable stake in the company with 115,571 shares valued at approximately $59,684,331.53.
As this intriguing turn of events unfolds within the company’s ownership and management structure, it is worth noting that Chemed’s stock currently stands at $512.32 as of Wednesday’s opening. With a market capitalization of approximately $7.73 billion and a P/E ratio of 34.15 along with a price-to-earnings growth ratio of 3.08, Chemed Co.’s standing remains quite substantial in the industry.
The company’s beta is also noteworthy at 0.53, suggesting relative stability and lower volatility compared to market benchmarks. It is important to mention that over the past year, Chemed’s stock has experienced fluctuations between its lowest point at $430.16 and its peak at $574.66.
In terms of trends and averages, Chemed Co.’s fifty-day simple moving average currently sits at $518.97 while its two-hundred-day simple moving average hovers around $532.27.
As perplexing as these developments might be for analysts and investors alike, it will undoubtedly be interesting to observe how these changes ultimately shape Chemed’s path moving forward in an ever-evolving healthcare industry landscape.
(Reference: This article references information as of September 20, 2023)
