Nicholas M. Westfall Takes Money Off The Table, Sells $4.22M In Chemed Stock

Nicholas M. Westfall, Executive Vice President at Chemed (NYSE:CHE), executed a substantial insider sell on August 5, according to an SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Westfall executed a sale of 10,012 shares of Chemed with a total value of $4,224,162.

Chemed shares are trading up 0.4% at $425.01 at the time of this writing on Tuesday morning.

About Chemed

Chemed Corp purchases, operates, and divests subsidiaries engaged in diverse business activities to maximize shareholder value. Through its subsidiaries, the company operates in the following segments: VITAS and Roto-Rooter. The VITAS segment generates the majority of the firm's revenue and 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 Roto-Rooter segment provides plumbing, drain cleaning, water restoration, and related services to residential and commercial customers.

Key Indicators: Chemed's Financial Health

Revenue Growth: Over the 3 months period, Chemed showcased positive performance, achieving a revenue growth rate of 3.85% as of 30 June, 2025. This reflects a substantial 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.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 29.85%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Chemed's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.6.

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.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 21.79 is lower than the industry average, implying a discounted valuation for Chemed's stock.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.51 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 13.37, Chemed's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Breaking Down the Significance of Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 signals 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.