Virtus Advisers LLC Purchases New Stake in Chemed Corporation $CHE

Key Points

• Virtus Advisers LLC has acquired a new stake in Chemed Corporation valued at approximately $551,000, indicating strong institutional interest in the company.
• Chemed recently announced a dividend increase from $0.50 to $0.60, reflecting positive cash flow and a low payout ratio of 12.34%.
• The company's latest earnings report showed missed estimates with earnings per share of $4.27, falling short of expectations of $6.02, and revenue of $618.80 million below the projected $650.60 million.

Virtus Advisers LLC bought a new position in Chemed Corporation (NYSE:CHE - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 895 shares of the company's stock, valued at approximately $551,000.

Other large investors have also recently modified their holdings of the company. Whipplewood Advisors LLC grew its stake in Chemed by 54.5% in the 1st quarter. Whipplewood Advisors LLC now owns 51 shares of the company's stock worth $31,000 after buying an additional 18 shares in the last quarter. Renasant Bank lifted its position in shares of Chemed by 2.3% in the 1st quarter. Renasant Bank now owns 815 shares of the company's stock worth $501,000 after purchasing an additional 18 shares during the period. Impact Capital Partners LLC increased its stake in shares of Chemed by 2.7% in the 1st quarter. Impact Capital Partners LLC now owns 763 shares of the company's stock worth $469,000 after acquiring an additional 20 shares in the last quarter. KFG Wealth Management LLC increased its stake in shares of Chemed by 4.6% in the 1st quarter. KFG Wealth Management LLC now owns 525 shares of the company's stock worth $323,000 after acquiring an additional 23 shares in the last quarter. Finally, First Horizon Advisors Inc. increased its stake in Chemed by 16.1% during the 1st quarter. First Horizon Advisors Inc. now owns 173 shares of the company's stock valued at $107,000 after purchasing an additional 24 shares in the last quarter. Hedge funds and other institutional investors own 95.85% of the company's stock.

Analyst Ratings Changes

A number of analysts have recently commented on the stock. Wall Street Zen lowered shares of Chemed from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Oppenheimer dropped their target price 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. Bank of America decreased their price target on shares of Chemed from $708.00 to $650.00 and set a "buy" rating on the stock in a research note on Monday, June 30th. Royal Bank Of Canada reduced their target price on shares of Chemed from $640.00 to $589.00 and set an "outperform" rating on the stock in a research note on Thursday, July 31st. Finally, Jefferies Financial Group started coverage on shares of Chemed in a report on Friday, July 25th. They set a "hold" rating and a $500.00 target price on the stock. Three research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, Chemed currently has an average rating of "Moderate Buy" and a consensus price target of $579.75.

Chemed Price Performance

Chemed stock traded up $6.72 during trading hours on Friday, hitting $458.62. The stock had a trading volume of 154,376 shares, compared to its average volume of 172,316. The stock has a market capitalization of $6.68 billion, a price-to-earnings ratio of 23.58, a PEG ratio of 2.49 and a beta of 0.46. Chemed Corporation has a 1-year low of $408.42 and a 1-year high of $623.60. The stock's fifty day moving average is $463.24 and its two-hundred day moving average is $537.42.

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

Chemed Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Investors of record on Monday, August 11th were given a dividend of $0.60 per share. The ex-dividend date was Monday, August 11th. This represents a $2.40 dividend on an annualized basis and a yield of 0.5%. This is an increase from Chemed's previous quarterly dividend of $0.50. Chemed's payout ratio is presently 12.34%.

Insider Buying and Selling

In related news, EVP Nicholas Michael Westfall sold 10,012 shares of the business'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 transaction of $4,224,162.92. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director George J. Walsh III purchased 200 shares of Chemed stock in a transaction on Monday, August 4th. The shares were acquired at an average price of $417.10 per share, with a total value of $83,420.00. Following the transaction, the director directly owned 3,523 shares in the company, valued at $1,469,443.30. This trade represents a 6.02% increase in their position. The disclosure for this purchase can be found here. Insiders own 3.29% of the company's stock.

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.