Chemed Corp CEO Kevin Mcnamara Sells 5,000 Shares
On October 31, 2023, Kevin Mcnamara, the President and CEO of Chemed Corp (NYSE:CHE), sold 5,000 shares of the company. This move is part of a larger trend of insider selling within the company over the past year.
Kevin Mcnamara has been with Chemed Corp for several years, leading the company through various stages of growth and development. Under his leadership, the company has consistently delivered strong financial performance and shareholder value.
Chemed Corp is a diversified corporation that operates two wholly-owned subsidiaries: VITAS Healthcare and Roto-Rooter. VITAS is the nation's largest provider of end-of-life hospice care, and Roto-Rooter is the nation's leading provider of plumbing and drain cleaning services.
Over the past year, the insider has sold a total of 22,000 shares and purchased 0 shares. This trend of insider selling is further illustrated in the following image:
The insider transaction history for Chemed Corp shows that there have been 0 insider buys and 16 insider sells over the past year. This could indicate that insiders believe the stock is currently overvalued, leading them to sell their shares.
On the day of the insider's recent sell, shares of Chemed Corp were trading for $560.68 apiece, giving the stock a market cap of $8.68 billion. The price-earnings ratio is 35.67, which is higher than the industry median of 25.71 and higher than the companys historical median price-earnings ratio.
With a price of $560.68 and a GuruFocus Value of $540.94, Chemed Corp has a price-to-GF-Value ratio of 1.04. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider sell by Kevin Mcnamara, along with the overall trend of insider selling at Chemed Corp, could indicate that insiders believe the stock is currently fairly valued. However, investors should always conduct their own research and consider other factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
