Executive Vice President & CFO David Williams Sells 5,000 Shares of Chemed Corp
On November 1, 2023, David Williams, the Executive Vice President and CFO of Chemed Corp (NYSE:CHE), sold 5,000 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 18,500 shares and purchased none.
David Williams has been with Chemed Corp for several years, serving in various executive roles. His experience and knowledge of the company's operations make his stock transactions particularly noteworthy for investors.
Chemed Corp, a company with a market cap of $8.69 billion, operates in the diverse fields of hospice care and plumbing services. Its two main subsidiaries are VITAS Healthcare, a leading provider of end-of-life care, and Roto-Rooter, the largest provider of plumbing and drain cleaning services in North America.
The insider transaction history for Chemed Corp shows a clear trend: over the past year, there have been 17 insider sells and no insider buys. This could be a signal to investors about the company's future prospects.
The relationship between insider transactions and stock price can be complex. However, it's generally accepted that when insiders sell shares, they may believe the stock is unlikely to go up in the short term. Conversely, when insiders buy shares, they expect the stock price to rise.
In the case of Chemed Corp, the insider's sell transactions coincide with a high price-earnings ratio of 35.86, which is higher than both the industry median of 25.71 and the company's historical median. This could suggest that the insider believes the stock is currently overvalued.
Furthermore, with a price of $568.87 and a GuruFocus Value of $541.03, Chemed Corp has a price-to-GF-Value ratio of 1.05. This indicates that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It's calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell transaction, combined with the company's high price-earnings ratio and fair GF Value, could suggest that Chemed Corp's stock is currently fairly valued. Investors should keep an eye on future insider transactions and other market indicators to make informed 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.
