Chemed Corporation $CHE Shares Acquired by Covea Finance

Key Points

• Covea Finance increased its stake in Chemed Corporation by 52.3% in the second quarter, acquiring a total of 9,900 shares valued at approximately $4.82 million.
• Chemed reported earnings for the second quarter at $4.27 EPS, which was below analysts' expectations of $6.02 EPS, with revenue also falling short at $618.8 million compared to forecasts of $650.6 million.
• The company announced an increase in its quarterly dividend from $0.50 to $0.60, resulting in an annualized rate of $2.40 and a yield of 0.5%.

Covea Finance boosted its position in Chemed Corporation (NYSE:CHE - Free Report) by 52.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 9,900 shares of the company's stock after buying an additional 3,400 shares during the quarter. Covea Finance owned approximately 0.07% of Chemed worth $4,821,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CHE. Alpine Bank Wealth Management bought a new stake in Chemed in the first quarter valued at about $29,000. HM Payson & Co. bought a new position in shares of Chemed during the first quarter valued at approximately $30,000. SVB Wealth LLC bought a new position in shares of Chemed during the first quarter valued at approximately $30,000. Whipplewood Advisors LLC grew its holdings in shares of Chemed by 54.5% during the first quarter. Whipplewood Advisors LLC now owns 51 shares of the company's stock valued at $31,000 after purchasing an additional 18 shares during the last quarter. Finally, WPG Advisers LLC bought a new position in shares of Chemed during the first quarter valued at approximately $32,000. 95.85% of the stock is owned by institutional investors.

Chemed Price Performance

Shares of CHE opened at $455.45 on Tuesday. Chemed Corporation has a one year low of $408.42 and a one year high of $623.60. The company has a 50-day moving average of $450.28 and a two-hundred day moving average of $524.60. The stock has a market cap of $6.64 billion, a price-to-earnings ratio of 23.42, a PEG ratio of 2.63 and a beta of 0.46.

Chemed (NYSE:CHE - Get Free Report) last released its earnings results 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). The business had revenue of $618.80 million during the quarter, compared to analysts' expectations of $650.60 million. Chemed had a net margin of 11.56% and a return on equity of 25.83%. Chemed's revenue for the quarter was up 3.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $5.47 EPS. Chemed has set its FY 2025 guidance at 22.000-22.300 EPS. Analysts anticipate that Chemed Corporation will post 21.43 earnings per share for the current year.

Chemed Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Monday, August 11th were issued a $0.60 dividend. The ex-dividend date was Monday, August 11th. This is an increase from Chemed's previous quarterly dividend of $0.50. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.5%. Chemed's dividend payout ratio is currently 12.34%.

Insider Activity

In other news, Director Patrick P. Grace sold 150 shares of the stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $463.39, for a total value of $69,508.50. Following the completion of the sale, the director owned 3,397 shares in the company, valued at $1,574,135.83. This represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director George J. Walsh III bought 200 shares of Chemed stock in a transaction dated Monday, August 4th. The stock was acquired at an average price of $417.10 per share, with a total value of $83,420.00. Following the acquisition, the director directly owned 3,523 shares of the company's stock, 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. Corporate insiders own 3.29% of the company's stock.

Analyst Ratings Changes

Several research firms have recently commented on CHE. Wall Street Zen lowered Chemed from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Bank of America lowered their target price on Chemed from $610.00 to $595.00 and set a "buy" rating for the company in a report on Wednesday, September 10th. Royal Bank Of Canada decreased their price objective on Chemed from $640.00 to $589.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Jefferies Financial Group raised Chemed from a "hold" rating to a "buy" rating and increased their price objective for the stock from $490.00 to $550.00 in a report on Tuesday, September 2nd. Finally, Oppenheimer decreased their price objective on Chemed from $650.00 to $580.00 and set an "outperform" rating for the company in a report on Thursday, July 31st. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of $578.50.

Chemed Profile

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.

Want to see what other hedge funds are holding CHE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Chemed Corporation (NYSE:CHE - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.