In a recent transaction, George J. Walsh III, a director at Chemed Corp (NYSE:CHE), sold 400 shares of the company's stock at a price of $597.47 per share, totaling nearly $239,000. This sale, which took place on September 26, 2024, was disclosed in a regulatory filing with the Securities and Exchange Commission.
Chemed Corp, known for its home health care services, saw this transaction decrease Walsh's direct holdings in the company to 3,046 shares. Additionally, the filing noted indirect ownership of 434 shares through Walsh's spouse.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. While the reasons for such sales can vary, they are a regular part of how insiders manage their personal investment portfolios and estate planning.
The sale by Walsh is a routine disclosure and part of the ongoing reporting that directors and other insiders are required to make when trading their own company's stock. These filings are publicly available and provide transparency for investors regarding the movements of insiders within the market.
Chemed Corp's stock, traded under the ticker CHE, is observed by investors who follow the health care services industry, and insider transactions such as this one can be an additional factor in their investment decisions.
In other recent news, Chemed Corporation has announced an increase of 25% in its quarterly cash dividend, marking a payout of 50 cents per share. This continues Chemed's legacy of consistent shareholder returns, having issued quarterly dividends for 213 consecutive quarters over its 53-year tenure as a publicly traded company.
On the earnings front, Chemed reported mixed results for the second quarter of 2024. Its subsidiary, VITAS Healthcare, demonstrated robust growth with an 11% rise in admissions and a 14.4% increase in the average daily census. The acquisition of Covenant Health is expected to add $30 million to $32 million to VITAS's annual revenue, contributing to a positive outlook for the year.
However, Roto-Rooter, another Chemed subsidiary, experienced a downturn in revenue and call volume. Despite this, Chemed has updated its 2024 earnings per share guidance to $23.55 to $23.80, up from the previous $23.30 to $23.70. These recent developments underline the diverse performance of Chemed's subsidiaries and its continued commitment to shareholder value.
InvestingPro Insights
To provide additional context to George J. Walsh III's recent stock sale, let's examine some key financial metrics and insights for Chemed Corp (NYSE:CHE) from InvestingPro.
Chemed Corp has demonstrated strong financial performance and shareholder value. According to InvestingPro data, the company's revenue for the last twelve months as of Q2 2024 stood at $2,335.56 million, with a healthy revenue growth of 6.79%. This growth trend is further supported by a quarterly revenue increase of 7.6% in Q2 2024, indicating consistent expansion in the company's operations.
InvestingPro Tips highlight Chemed's commitment to shareholder returns. The company has raised its dividend for 15 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This long-term track record of dividend growth aligns with the company's stable financial position and may provide context for why insiders like Walsh might adjust their holdings periodically.
Despite the recent insider sale, Chemed's stock appears to be performing well. The company has seen a 17% price total return over the past year, and its stock is trading at 92.42% of its 52-week high. This positive momentum is complemented by analysts' predictions of profitability for the current year, as noted in the InvestingPro Tips.
It's worth noting that while Chemed is trading at a high earnings multiple with a P/E ratio of 30.36, it's also trading at a low P/E ratio relative to its near-term earnings growth. This suggests that investors are pricing in expectations for continued strong performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Chemed Corp, providing a deeper dive into the company's financial health and market position.
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