Kevin J. McNamara, the president and CEO of Chemed Corp (NYSE:CHE), recently sold 2,000 shares of the company's capital stock. The shares were sold at a weighted average price of $572.77, resulting in a total transaction value of approximately $1.14 million. Following this transaction, McNamara holds 101,735 shares directly. The sale was executed on November 25, 2024, and was reported to the Securities and Exchange Commission in a Form 4 filing. According to the filing, the shares were sold in multiple transactions with prices ranging from $571.93 to $573.89.
In other recent news, Chemed Corporation has authorized an additional $300 million for stock repurchases and maintained its quarterly cash dividend of 50 cents per share. This decision, part of the ongoing share repurchase program, reflects Chemed's commitment to returning value to its shareholders. In recent developments, Chemed reported mixed third-quarter results with its VITAS Healthcare segment demonstrating significant growth, while its Roto-Rooter division faced a decline in revenue. Patient admissions for VITAS increased by 6.3% year-over-year to 16,775, and revenue rose by 17.3% to $391.4 million. Conversely, Roto-Rooter saw a 6.9% decline in revenue to $214.8 million. RBC Capital Markets maintained an Outperform rating for Chemed, despite adjusting its price target from $697 to $633, highlighting the continued momentum in the VITAS segment. Following these developments, Chemed adjusted its full-year earnings per share guidance to $23-$23.15.
InvestingPro Insights
As Kevin J. McNamara reduces his stake in Chemed Corp (NYSE:CHE), investors might be curious about the company's financial health and market position. According to InvestingPro data, Chemed boasts a market capitalization of $8.6 billion, reflecting its substantial presence in the healthcare services sector.
The company's P/E ratio stands at 28.77, which is relatively high compared to its near-term earnings growth, as noted by one of the InvestingPro Tips. This valuation metric suggests that investors are paying a premium for Chemed's shares, possibly due to its strong market position and growth prospects.
Chemed's financial performance appears robust, with revenue growth of 6.83% over the last twelve months as of Q3 2024, and an impressive EBITDA growth of 16.61% over the same period. These figures indicate that the company is expanding its operations and improving profitability.
An InvestingPro Tip highlights that Chemed has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a recent dividend growth of 25% and a current dividend yield of 0.35%. While the yield may seem modest, the consistent growth in dividends could be attractive to long-term investors.
Another noteworthy InvestingPro Tip reveals that management has been aggressively buying back shares. This strategy often signals confidence in the company's future and can potentially increase shareholder value.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Chemed Corp, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.