Brian C Judkins, VP and Chief Legal Officer at Chemed CHE, reported a large exercise of company stock options on October 23, according to a new SEC filing.

What Happened: Judkins, VP and Chief Legal Officer at Chemed, made a strategic move by exercising stock options for 0 shares of CHE as detailed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission. The transaction value amounted to $0.

The latest update on Thursday morning shows Chemed shares down by 0.0%, trading at $593.15. At this price, Judkins’s 0 shares are worth $0.

All You Need to Know About Chemed

Chemed Corp operates subsidiaries in two main segments: VITAS and Roto-Rooter. The VITAS segment generates the majority of the firm’s revenue. It provides hospice and palliative care services to patients with terminal illnesses through a network of physicians, registered nurses, home health aides, social workers, and volunteers. The vast majority of the segment’s revenue is received from the Medicare and Medicaid reimbursement programs. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration, and related services to residential and commercial customers. Chemed generates the majority of its revenue from business in the United States.

Chemed: Financial Performance Dissected

Revenue Growth: Chemed displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 7.6%. This indicates a notable increase in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Interpreting Earnings Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 34.59%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Chemed’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 4.7.

Debt Management: Chemed’s debt-to-equity ratio is below the industry average at 0.12, reflecting a lower dependency on debt financing and a more conservative financial approach.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 30.06 is lower than the industry average, implying a discounted valuation for Chemed’s stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 3.88 is above industry norms, reflecting an elevated valuation for Chemed’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 19.54, Chemed could be considered undervalued.

Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Chemed’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.