Chemed Corp (NYSE:CHE) Executive Vice President Nicholas Michael Westfall recently sold 2,000 shares of company stock, garnering over $1.1 million from the transaction. The sale took place on July 30, with the shares being sold at a weighted average price of $561.58. The price range for these shares varied slightly, with transactions occurring between $561.55 to $562.14.
This sell-off leaves Westfall with a total of 5,990 shares in the company, which specializes in home health care services. Chemed Corp, known for its Roto-Rooter service, has its shares publicly traded under the ticker symbol CHE.
Investors often keep a close eye on insider transactions as they can provide insights into an executive's view of the company's current valuation and future prospects. The details of the sale, including the exact number of shares sold at each price within the range, have been made available by Westfall to Chemed Corporation, any security holder of Chemed Corporation, or staff of the SEC upon request.
The transaction was reported in a Form 4 filing with the Securities and Exchange Commission, which documents insider trading activities. Nicholas M. Westfall, who serves as the Executive Vice President, completed the necessary documentation on July 31, the day after the sale took place.
In other recent news, Chemed Corporation has experienced a series of significant developments. RBC Capital has adjusted its price target for Chemed shares to $697, down from the previous target of $712, while maintaining an Outperform rating. This adjustment follows a review of the company's Q1 2024 performance, which highlighted robust results from the VITAS Healthcare unit, but challenges in the Roto-Rooter business.
The VITAS segment demonstrated strong performance, with RBC Capital expressing confidence in its continued growth. This optimism is partly due to the potential benefits from the recent acquisition of Covenant Care. However, the Roto-Rooter business faced headwinds, with a revenue decrease of 5.8% year-over-year in the first quarter, prompting the revised price target from RBC Capital.
In other recent developments, Chemed shareholders elected a slate of 10 directors and ratified the appointment of PricewaterhouseCoopers LLP as the company's independent accountants for 2024. Additionally, the company's executive compensation received approval, and a quarterly cash dividend of 40 cents per share was declared. However, a stockholder proposal concerning the ratification of termination pay was voted against. These developments highlight the company's ongoing strategic adjustments and shareholder engagement.
InvestingPro Insights
Following the recent insider sale by Chemed Corp (NYSE:CHE) Executive Vice President Nicholas Michael Westfall, investors may find additional context in the company's financial metrics and market performance. Chemed Corp, with a current market capitalization of $8.5 billion, is trading at a P/E ratio of 28.41. This valuation is considered low relative to the near-term earnings growth, which is a positive sign for investors looking for value. The P/E ratio adjusted for the last twelve months as of Q2 2024 is slightly lower at 27.62, indicating a consistent valuation over time.
One of the InvestingPro Tips for Chemed Corp is its commendable history of raising dividends, having done so for 15 consecutive years. This is a testament to the company's financial stability and commitment to returning value to shareholders. Additionally, Chemed Corp is highlighted for its low price volatility, providing a degree of predictability and stability in an investor's portfolio.
Revenue growth also presents a positive picture, with a 6.79% increase over the last twelve months as of Q2 2024. This growth is supported by a robust gross profit margin of 35.96%, which speaks to the company's ability to manage its cost of goods sold effectively. Moreover, the company's cash flows are strong enough to sufficiently cover interest payments, which aligns with the InvestingPro Tip that Chemed operates with a moderate level of debt.
For those seeking more insights, there are additional InvestingPro Tips available for Chemed Corp at https://www.investing.com/pro/CHE. These tips can provide further guidance on the company's financial health and investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.