Chemed Corporation (NYSE:CHE) Short Interest Up 33.5% in August

Key Points

• Short Interest Surge: Chemed Corporation experienced a 33.5% increase in short interest, reaching 513,000 shares as of August 15th, reflecting a growing bearish sentiment among investors.
• Dividend Increase: The company recently raised its quarterly dividend from $0.50 to $0.60, with a current annualized yield of 0.5% and a payout ratio of 12.34%.
• Analysts' Ratings Update: Multiple analysts have adjusted their price targets on Chemed, with current consensus reflecting a buy rating and an average target of $592.25.

Chemed Corporation (NYSE:CHE - Get Free Report) saw a large growth in short interest in the month of August. As of August 15th, there was short interest totaling 513,000 shares, a growth of 33.5% from the July 31st total of 384,400 shares. Approximately 3.6% of the company's shares are sold short. Based on an average daily trading volume, of 167,900 shares, the short-interest ratio is currently 3.1 days. Based on an average daily trading volume, of 167,900 shares, the short-interest ratio is currently 3.1 days. Approximately 3.6% of the company's shares are sold short.

Insider Transactions at Chemed

In other Chemed news, Director Patrick P. Grace sold 150 shares of Chemed stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $463.39, for a total transaction of $69,508.50. Following the completion of the sale, the director owned 3,397 shares of the company's stock, valued at approximately $1,574,135.83. The trade was a 4.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Nicholas Michael Westfall sold 10,012 shares of the company's stock in a transaction dated Monday, August 4th. The shares were 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 currently owned by corporate insiders.

Institutional Trading of Chemed

Institutional investors and hedge funds have recently modified their holdings of the business. Osaic Holdings Inc. grew its holdings in shares of Chemed by 70.8% during the second quarter. Osaic Holdings Inc. now owns 748 shares of the company's stock worth $365,000 after purchasing an additional 310 shares during the last quarter. Centaurus Financial Inc. grew its holdings in Chemed by 1.9% during the 2nd quarter. Centaurus Financial Inc. now owns 5,491 shares of the company's stock worth $2,674,000 after acquiring an additional 105 shares during the last quarter. Ranger Investment Management L.P. increased its position in Chemed by 13.3% in the 2nd quarter. Ranger Investment Management L.P. now owns 59,505 shares of the company's stock valued at $28,975,000 after acquiring an additional 6,989 shares during the period. Advisory Services Network LLC raised its stake in shares of Chemed by 287.9% during the second quarter. Advisory Services Network LLC now owns 1,854 shares of the company's stock valued at $903,000 after acquiring an additional 1,376 shares during the last quarter. Finally, Cim LLC raised its stake in shares of Chemed by 4.2% during the second quarter. Cim LLC now owns 2,115 shares of the company's stock valued at $1,030,000 after acquiring an additional 86 shares during the last quarter. 95.85% of the stock is currently owned by institutional investors.

Chemed Trading Down 2.6%

Chemed stock traded down $11.89 during trading hours on Friday, reaching $446.00. 160,245 shares of the stock were exchanged, compared to its average volume of 167,896. Chemed has a twelve month low of $408.42 and a twelve month high of $623.60. The company has a market cap of $6.50 billion, a P/E ratio of 22.93, a price-to-earnings-growth ratio of 2.66 and a beta of 0.46. The stock has a 50 day moving average of $451.83 and a two-hundred day moving average of $530.93.

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

Chemed Increases Dividend

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

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. Bank of America cut their price target on Chemed from $610.00 to $595.00 and set a "buy" rating for the company in a report on Wednesday. Royal Bank Of Canada cut their target price on shares of Chemed from $640.00 to $589.00 and set an "outperform" rating for the company in a research note on Thursday, July 31st. Jefferies Financial Group upgraded shares of 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 note on Tuesday, September 2nd. Oppenheimer cut 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. Finally, Wall Street Zen cut Chemed from a "buy" rating to a "hold" rating in a report on Saturday, July 5th. Four investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $578.50.

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.