Bank of America Lowers Chemed (NYSE:CHE) Price Target to $595.00

Key Points

• Bank of America has reduced its price target for Chemed (NYSE:CHE) from $610 to $595, while still maintaining a "buy" rating for the stock, suggesting a potential upside of 31.21% from its previous close.
• Other brokerages have also lowered their price targets for Chemed, with Oppenheimer setting it at $580 and Royal Bank Of Canada at $589, indicating a general trend of declining expectations for the stock.
• Chemed reported a significant earnings miss for the last quarter with an EPS of $4.27, falling short of the $6.02 expected by analysts, amidst a slight revenue increase of 3.8% year-over-year.

Chemed (NYSE:CHE - Get Free Report) had its target price lowered by equities research analysts at Bank of America from $610.00 to $595.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Bank of America's price target would indicate a potential upside of 33.41% from the company's previous close.

Other equities analysts also recently issued research reports about the stock. Jefferies Financial Group raised shares of Chemed from a "hold" rating to a "buy" rating and lifted their price target for the company from $490.00 to $550.00 in a report on Tuesday, September 2nd. Royal Bank Of Canada decreased their price objective on shares of Chemed from $640.00 to $589.00 and set an "outperform" rating on the stock in a research report on Thursday, July 31st. Oppenheimer decreased their price objective on shares of Chemed from $650.00 to $580.00 and set an "outperform" rating on the stock in a research report on Thursday, July 31st. Finally, Wall Street Zen downgraded shares of Chemed from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. Four analysts have rated the stock with a Buy rating, Based on data from MarketBeat, Chemed has an average rating of "Buy" and an average target price of $578.50.

Chemed Stock Performance

Shares of CHE stock traded down $11.89 during mid-day trading on Wednesday, reaching $446.00. 160,245 shares of the company's stock traded hands, compared to its average volume of 167,896. Chemed has a 12 month low of $408.42 and a 12 month high of $623.60. The firm has a 50 day moving average price of $451.83 and a two-hundred day moving average price of $531.04. The firm has a market capitalization of $6.50 billion, a PE ratio of 22.93, a price-to-earnings-growth ratio of 2.66 and a beta of 0.46.

Chemed (NYSE:CHE - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported $4.27 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $6.02 by ($1.75). Chemed had a net margin of 11.56% and a return on equity of 25.83%. The business had revenue of $618.80 million for the quarter, compared to the consensus estimate of $650.60 million. During the same period in the previous year, the firm earned $5.47 EPS. The company's revenue was up 3.8% on a year-over-year basis. Chemed has set its FY 2025 guidance at 22.000-22.300 EPS. As a group, equities analysts expect that Chemed will post 21.43 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Chemed news, Director Patrick P. Grace sold 150 shares of Chemed stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $463.39, for a total value of $69,508.50. Following the completion of the transaction, the director directly owned 3,397 shares of the company's stock, valued at $1,574,135.83. This trade represents a 4.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director George J. Walsh III acquired 200 shares of the company's stock in a transaction on Monday, August 4th. The stock was acquired at an average cost of $417.10 per share, with a total value of $83,420.00. Following the completion of the purchase, the director directly owned 3,523 shares in the company, valued at approximately $1,469,443.30. This represents a 6.02% increase in their ownership of the stock. The disclosure for this purchase can be found here. 3.29% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Chemed

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Kayne Anderson Rudnick Investment Management LLC grew its stake in shares of Chemed by 2.6% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 597,175 shares of the company's stock worth $367,454,000 after buying an additional 15,041 shares in the last quarter. Neuberger Berman Group LLC boosted its stake in shares of Chemed by 3.9% during the 1st quarter. Neuberger Berman Group LLC now owns 521,212 shares of the company's stock worth $320,712,000 after purchasing an additional 19,650 shares during the period. Acadian Asset Management LLC boosted its stake in shares of Chemed by 69.3% during the 2nd quarter. Acadian Asset Management LLC now owns 250,722 shares of the company's stock worth $122,056,000 after purchasing an additional 102,597 shares during the period. Boston Trust Walden Corp boosted its stake in shares of Chemed by 0.4% during the 2nd quarter. Boston Trust Walden Corp now owns 247,434 shares of the company's stock worth $120,483,000 after purchasing an additional 1,083 shares during the period. Finally, Dimensional Fund Advisors LP boosted its stake in shares of Chemed by 9.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 218,675 shares of the company's stock worth $134,547,000 after purchasing an additional 19,421 shares during the period. 95.85% of the stock is owned by hedge funds and other institutional investors.

About Chemed

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in VITAS and Roto-Rooter segments. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees.