Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Insider Selling At Chemed Corporation (CHE), PDC Energy Inc. (PDCE) And Others; How Much Should Investors Worry?

The U.S. equities have been struggling to extend their rally that started in mid-November, and it is highly unlikely that the S&P 500 Index will reach another record closing high by the end of the year. The two-day Federal Open Market Committee meeting gets underway on Tuesday, during which the Federal Reserve is widely anticipated to raise interest rates for the first time in more than nine years. It is also highly unlikely that investors will run away from equities following a potential rate hike, so the ability of the U.S. economy to tackle the higher rates seems to be the primary factor that will guide the direction of the U.S. equities in the upcoming year. Meanwhile, some companies’ insiders have started to unload their holdings lately, which might lead to growing concerns among investors about certain companies’ future prospects. Although insiders tend to sell shares for a wide array of reasons that might not necessarily be related to their companies’ outlook, this type of activity may still have an impact on investors’ investing decisions. For that reason, this article will reveal noteworthy insider sales registered at several U.S.-listed companies and analyze the performance of these companies.

Prior to discussing the insider trading activity, let’s make you familiar with what Insider Monkey does besides providing high-quality articles. At Insider Monkey, we track hedge funds’ moves in order to identify actionable patterns and profit from them. Our research has shown that hedge funds’ large-cap stock picks historically underperformed the S&P 500 Total Return Index by an average of seven basis points per month between 1999 and 2012. On the other hand, the 15 most popular small-cap stocks among hedge funds outperformed the S&P 500 Index by an average of 95 basis points per month (read more details here). Since the official launch of our small-cap strategy in August 2012, it has performed just as predicted, returning 102% and beating the market by more than 53 percentage points. We believe the data is clear: investors will be better off by focusing on small-cap stocks utilizing hedge fund expertise (while avoiding their high fees at the same time) rather than large-cap stocks.

Chemed Corporation (NYSE:CHE) saw one of its executives unload shares last week. Chief Financial Officer and Executive Vice President David Patrick Williams sold 5,000 shares on Friday at a sale price of $151.72 per share, 1,600 shares of which were held through his Individual Retirement Account (IRA). After the recent sale, the CFO currently holds a direct ownership stake of 38,568 shares. The company operates through its two wholly-owned subsidiaries, VITAS Healthcare Corporation and Roto-Rooter Group. The company’s VITAS segment offers hospice and palliative care services, while the Roto-Rooter segment focuses on plumbing and drain cleaning services. Shares of Chemed Corporation (NYSE:CHE) have gained 41% thus far in 2015 and are trading at a relatively rich trailing price-to-earnings ratio of 23.65 (the average for the S&P 500 Index stands at 22.73). The company’s strong stock performance was mainly attributable to the strong financial performance of its two business segments. Chemed reported consolidated services revenues of $1.14 billion for the nine months that ended September 30, up from $1.08 billion reported for the same period in 2014. This increase was propelled by higher revenue generated from the water restoration business and higher plumbing revenue. At the same time, the company’s VITAS business registered higher revenues mainly due to higher Medicare reimbursement rates and an increase in days of care. Ken Fisher’s Fisher Asset Management reported ownership of nearly 554,000 shares in Chemed Corporation (NYSE:CHE) through its 13F filing for the September quarter.

Follow Chemed Corp (NYSE:CHE)
Trade (NYSE:CHE) Now!

Let’s head to the next page of this insider trading article, where the insider sales registered at Axis Capital Holdings Limited (NYSE:AXS) and PDC Energy Inc. (NASDAQ:PDCE) are revealed.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.