Pallas Capital Advisors LLC Acquires New Holdings in Chemed Corporation $CHE

Key Points

• Pallas Capital Advisors LLC has acquired a new stake in Chemed Corporation, buying 602 shares valued at approximately $293,000 during the second quarter.
• Chemed reported disappointing earnings, with $4.27 EPS in the latest quarter, missing analysts' estimates of $6.02 by $1.75.
• The company announced a quarterly dividend increase to $0.60 per share, up from the previous $0.50, representing an annualized yield of 0.5%.

Pallas Capital Advisors LLC acquired a new stake in Chemed Corporation (NYSE:CHE - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 602 shares of the company's stock, valued at approximately $293,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in CHE. Vident Advisory LLC increased its position in Chemed by 112.4% during the 4th quarter. Vident Advisory LLC now owns 1,340 shares of the company's stock valued at $710,000 after purchasing an additional 709 shares during the period. Voloridge Investment Management LLC increased its position in Chemed by 201.3% during the 4th quarter. Voloridge Investment Management LLC now owns 11,626 shares of the company's stock valued at $6,159,000 after purchasing an additional 7,767 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Chemed by 5.0% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 48,197 shares of the company's stock valued at $25,535,000 after purchasing an additional 2,277 shares during the period. Ascent Group LLC acquired a new stake in Chemed during the 4th quarter valued at approximately $258,000. Finally, United Advisor Group LLC increased its position in Chemed by 25.1% during the 4th quarter. United Advisor Group LLC now owns 807 shares of the company's stock valued at $428,000 after purchasing an additional 162 shares during the period. Institutional investors and hedge funds own 95.85% of the company's stock.

Chemed Stock Down 1.3%

Shares of CHE stock opened at $452.15 on Monday. Chemed Corporation has a 52 week low of $408.42 and a 52 week high of $623.60. The firm has a 50 day moving average of $450.46 and a 200-day moving average of $525.58. The company has a market cap of $6.59 billion, a price-to-earnings ratio of 23.25, a price-to-earnings-growth ratio of 2.63 and a beta of 0.46.

Chemed (NYSE:CHE - Get Free Report) last issued 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). Chemed had a return on equity of 25.83% and a net margin of 11.56%.The firm had revenue of $618.80 million during the quarter, compared to the consensus estimate of $650.60 million. During the same quarter in the prior year, the business earned $5.47 earnings per share. Chemed's revenue for the quarter was up 3.8% on a year-over-year basis. 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 company also recently announced a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, August 11th were issued a $0.60 dividend. The ex-dividend date was Monday, August 11th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.5%. This is an increase from Chemed's previous quarterly dividend of $0.50. Chemed's dividend payout ratio (DPR) is 12.34%.

Insider Buying and Selling

In related 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 transaction, the director directly owned 3,397 shares in the company, valued at $1,574,135.83. This trade represents a 4.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Nicholas Michael Westfall sold 10,012 shares of the stock in a transaction 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 disclosure for this sale can be found here. 3.29% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Wall Street Zen downgraded shares of Chemed from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. Jefferies Financial Group raised shares of Chemed from a "hold" rating to a "buy" rating and increased their target price for the company from $490.00 to $550.00 in a research report on Tuesday, September 2nd. Bank of America reduced their price objective on shares of Chemed from $610.00 to $595.00 and set a "buy" rating for the company in a research report on Wednesday, September 10th. Royal Bank Of Canada reduced their price objective on shares of Chemed from $640.00 to $589.00 and set an "outperform" rating for the company in a research report on Thursday, July 31st. Finally, Oppenheimer reduced their price objective on shares of Chemed from $650.00 to $580.00 and set an "outperform" rating for the company in a research report on Thursday, July 31st. Four investment analysts have rated the stock with a Buy rating, According to MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $578.50.

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.

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