Chemed (NYSE:CHE) Raised to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Chemed to “strong-buy” from “hold,” while the broader analyst consensus remains “Hold,” with an average price target of $530.75.
• Chemed’s latest quarter exceeded expectations, with earnings per share of $6.06 versus the $5.60 consensus and revenue of $673.25 million, up 8.8% year over year.
• Shares opened at $533.03, near their 52-week high of $551.68; institutional investors own a substantial 95.85% of the company, while an insider recently reduced their holdings by 22.73% through a stock sale.

Chemed (NYSE:CHE - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Saturday.

A number of other analysts have also recently commented on the stock. Zacks Research raised shares of Chemed from a "strong sell" rating to a "hold" rating in a research note on Monday, April 27th. Royal Bank Of Canada raised their price target on shares of Chemed from $436.00 to $548.00 and gave the company a "sector perform" rating in a research note on Thursday. Bank of America reiterated a "neutral" rating on shares of Chemed in a report on Wednesday. Weiss Ratings upgraded Chemed from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, July 17th. Finally, Oppenheimer increased their target price on Chemed from $500.00 to $590.00 and gave the company an "outperform" rating in a report on Friday. One equities research analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $530.75.

Chemed Trading Down 0.3%

Shares of NYSE:CHE opened at $533.03 on Friday. The business's 50 day moving average price is $467.11 and its 200-day moving average price is $436.57. Chemed has a 1 year low of $365.20 and a 1 year high of $551.68. The firm has a market capitalization of $7.07 billion, a price-to-earnings ratio of 26.77, a price-to-earnings-growth ratio of 2.03 and a beta of 0.52. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.91 and a quick ratio of 0.83.

Chemed (NYSE:CHE - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The company reported $6.06 earnings per share for the quarter, topping analysts' consensus estimates of $5.60 by $0.46. The company had revenue of $673.25 million during the quarter, compared to analysts' expectations of $665.04 million. Chemed had a net margin of 10.60% and a return on equity of 31.77%. The firm's revenue for the quarter was up 8.8% on a year-over-year basis. During the same period in the prior year, the business posted $4.27 earnings per share. Chemed has set its FY 2026 guidance at 25.000-25.750 EPS. On average, equities research analysts forecast that Chemed will post 23.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Andrea R. Lindell sold 1,347 shares of the company's stock in a transaction dated Tuesday, June 9th. The shares were sold at an average price of $447.33, for a total transaction of $602,553.51. Following the completion of the sale, the director owned 4,578 shares of the company's stock, valued at approximately $2,047,876.74. This represents a 22.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 3.33% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. BNP Paribas Financial Markets lifted its holdings in shares of Chemed by 14.5% in the 4th quarter. BNP Paribas Financial Markets now owns 35,024 shares of the company's stock worth $14,985,000 after acquiring an additional 4,430 shares during the last quarter. Abacus FCF Advisors LLC acquired a new stake in Chemed in the 4th quarter valued at approximately $5,935,000. TD Asset Management Inc increased its holdings in Chemed by 7.5% in the 4th quarter. TD Asset Management Inc now owns 324,546 shares of the company's stock valued at $138,860,000 after purchasing an additional 22,715 shares during the last quarter. Epoch Investment Partners Inc. raised its position in Chemed by 4.9% in the fourth quarter. Epoch Investment Partners Inc. now owns 322,408 shares of the company's stock valued at $137,945,000 after purchasing an additional 15,133 shares during the period. Finally, C WorldWide Group Holding A S purchased a new stake in Chemed in the fourth quarter valued at approximately $2,189,000. 95.85% of the stock is owned by hedge funds and other institutional investors.

Chemed Company Profile

Chemed Corporation is a diversified provider of essential home services and healthcare solutions in the United States. Headquartered in Cincinnati, Ohio, the company operates through two principal business segments—Roto-Rooter and Vitas Healthcare. Since its founding in 1974, Chemed has built a reputation for reliability and expertise, serving both residential and commercial customers across a broad range of markets.

The Roto-Rooter segment offers a comprehensive suite of plumbing, drain cleaning and water restoration services.

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