In a recent transaction, Patrick P. Grace, a director of Chemed Corp (NYSE:CHE), sold 284 shares of the company's capital stock, realizing a total of over $150,000. According to a Form 4 filing with the Securities and Exchange Commission, the shares were disposed of at a weighted average price of $540.98.
The sales took place on June 12, 2024, with the prices of the shares ranging from $539.54 to $541.38. This transaction has adjusted Grace's holdings in Chemed Corp, leaving him with a total of 3,270 shares following the sale.
As a director of Chemed Corp, a company known for its home health care services, Grace's transactions in the company's stock are closely watched by investors for signs of the company's internal sentiment. The sale of these shares represents a significant transaction by a key member of the company's board.
Investors and stakeholders of Chemed Corp can request detailed information about the specific prices at which the shares were sold within the provided range, as stated in the footnote of the SEC filing.
The transaction was publicly reported on June 13, 2024, in line with SEC regulations. Chemed Corp's stock is traded under the ticker symbol CHE, and the company has a strong presence in the home health care services industry.
The filing did not disclose any specific reason for the sale, and it is not uncommon for executives and directors to sell shares for personal financial management reasons. As of now, Patrick P. Grace remains a director and a significant shareholder of Chemed Corp.
In other recent news, Chemed Corporation has been a focal point for investors due to a series of developments. RBC (TSX:RY) Capital adjusted its price target for the company to $697 from $712, while maintaining an Outperform rating. This change comes after a review of Chemed's first quarter performance in 2024, which highlighted strong results from its VITAS Healthcare unit and challenges in its Roto-Rooter business.
The VITAS segment reported robust patient census growth, with RBC Capital expressing confidence in the unit's continued strength, partly due to the potential benefits from the recent acquisition of Covenant Care. However, the Roto-Rooter business faced headwinds, with a 5.8% year-over-year revenue decrease in the first quarter, prompting RBC Capital to revise its estimates.
In addition to these financial developments, Chemed's shareholders elected 10 directors to the company's board and ratified PricewaterhouseCoopers LLP as the firm's independent accountants for 2024 during their recent annual meeting. The company's executive compensation was approved, but a proposal concerning ratification of termination pay was voted down. The board also declared a quarterly cash dividend of 40 cents per share, continuing a long-standing history of dividend payments. These are the latest developments in Chemed's business trajectory.
InvestingPro Insights
Following the recent transaction by Patrick P. Grace, a director of Chemed Corp (NYSE:CHE), where he sold a portion of his holdings in the company, investors may be interested in the broader financial health and market sentiment surrounding CHE. The company, with an adjusted market capitalization of $8.1 billion, is trading at a P/E ratio of 28.46, reflecting investor expectations of future earnings. The P/E ratio is on the higher side, which aligns with one of the InvestingPro Tips indicating that the stock is trading at a high P/E ratio relative to near-term earnings growth.
Despite the recent insider sale, Chemed Corp has a history of consistent dividend payments, having maintained them for 54 consecutive years, and has even raised its dividend for 15 consecutive years. This track record is a testament to the company's financial stability and commitment to shareholder returns, as noted in another InvestingPro Tip. Additionally, with a dividend yield of 0.3% and a recent growth of 5.26% in dividends, income-focused investors might find CHE an attractive option for their portfolios.
Moreover, the company's revenue has grown by 5.96% over the last twelve months as of Q1 2024, and Chemed Corp continues to be profitable with a return on assets of 17.94%. These metrics suggest a solid operational performance, which may be of interest to potential investors considering the company's stock.
For those seeking a deeper analysis, there are additional InvestingPro Tips available on InvestingPro that could provide further insights into Chemed Corp's financial health and market position. To access these tips and detailed analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these resources, investors can make more informed decisions about their investments in CHE.
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