Hsbc Holdings PLC Cuts Stake in Chemed Corporation $CHE

Key Points

• Hsbc Holdings PLC reduced its holdings in Chemed Corporation by 37.7% during the first quarter, now owning approximately $2.49 million worth of shares.
• Chemed Corporation's recent quarterly earnings missed analysts' estimates, reporting $4.27 EPS versus the expected $6.02, with revenues of $618.80 million.
• The company announced an increase in its quarterly dividend from $0.50 to $0.60, reflecting a commitment to return value to shareholders.

Hsbc Holdings PLC reduced its position in Chemed Corporation (NYSE:CHE - Free Report) by 37.7% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 4,056 shares of the company's stock after selling 2,458 shares during the period. Hsbc Holdings PLC's holdings in Chemed were worth $2,492,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Neuberger Berman Group LLC raised its stake in Chemed by 3.9% in the 1st quarter. Neuberger Berman Group LLC now owns 521,212 shares of the company's stock valued at $320,712,000 after acquiring an additional 19,650 shares during the period. Boston Trust Walden Corp increased its position in shares of Chemed by 1.7% during the first quarter. Boston Trust Walden Corp now owns 246,351 shares of the company's stock valued at $151,585,000 after buying an additional 4,179 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Chemed by 9.7% during the first quarter. Dimensional Fund Advisors LP now owns 218,675 shares of the company's stock valued at $134,547,000 after buying an additional 19,421 shares during the period. Northern Trust Corp increased its position in shares of Chemed by 3.4% during the first quarter. Northern Trust Corp now owns 215,523 shares of the company's stock valued at $132,616,000 after buying an additional 6,988 shares during the period. Finally, GAMMA Investing LLC increased its position in shares of Chemed by 131,200.8% during the first quarter. GAMMA Investing LLC now owns 166,752 shares of the company's stock valued at $102,606,000 after buying an additional 166,625 shares during the period. 95.85% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

CHE has been the topic of several analyst reports. Jefferies Financial Group upgraded Chemed from a "hold" rating to a "buy" rating and upped their price target for the company from $490.00 to $550.00 in a research report on Tuesday. Bank of America decreased their price target on Chemed from $708.00 to $650.00 and set a "buy" rating on the stock in a research report on Monday, June 30th. Wall Street Zen cut Chemed from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. Oppenheimer decreased their price target on Chemed from $650.00 to $580.00 and set an "outperform" rating on the stock in a research report on Thursday, July 31st. Finally, Royal Bank Of Canada decreased their price target on Chemed from $640.00 to $589.00 and set an "outperform" rating on the stock in a research report on Thursday, July 31st. Four research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Chemed presently has a consensus rating of "Buy" and an average target price of $592.25.

Chemed Trading Up 1.6%

Shares of NYSE CHE traded up $7.21 during midday trading on Tuesday, hitting $465.16. 297,358 shares of the company's stock were exchanged, compared to its average volume of 155,737. Chemed Corporation has a 12-month low of $408.42 and a 12-month high of $623.60. The company has a market cap of $6.78 billion, a price-to-earnings ratio of 23.92, a PEG ratio of 2.52 and a beta of 0.46. The business's fifty day moving average price is $459.55 and its two-hundred day moving average price is $536.02.

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

Chemed Increases Dividend

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

Insider Activity at Chemed

In other Chemed news, EVP Nicholas Michael Westfall sold 10,012 shares of the company's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $421.91, for a total value of $4,224,162.92. The sale 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 the business's stock in a transaction on Monday, August 4th. The stock was purchased at an average cost of $417.10 per share, with a total value of $83,420.00. Following the purchase, the director owned 3,523 shares of the company's stock, valued at $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 owned by corporate insiders.

Chemed Company 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.