Short Interest in Chemed Corporation (NYSE:CHE) Expands By 33.5%

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) was the recipient of a significant growth in short interest in the month of August. As of August 15th, there was short interest totaling 513,000 shares, agrowthof33.5% from the July 31st total of 384,400 shares. Based on an average daily volume of 167,900 shares, the short-interest ratio is presently 3.1 days. Currently,3.6% of the company's stock are sold short. Currently,3.6% of the company's stock are sold short. Based on an average daily volume of 167,900 shares, the short-interest ratio is presently 3.1 days.

Chemed Stock Performance

NYSE:CHE opened at $464.58 on Tuesday. The firm has a 50-day simple moving average of $453.47 and a two-hundred day simple moving average of $533.44. Chemed has a fifty-two week low of $408.42 and a fifty-two week high of $623.60. The firm has a market cap of $6.77 billion, a P/E ratio of 23.89, a P/E/G ratio of 2.57 and a beta of 0.46.

Chemed (NYSE:CHE - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The company reported $4.27 EPS for the quarter, missing analysts' consensus estimates of $6.02 by ($1.75). The company had revenue of $618.80 million during 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% compared to the same quarter last year. During the same quarter 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. On average, equities research analysts predict that Chemed will post 21.43 EPS for the current year.

Chemed Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Monday, August 11th were given 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 (DPR) is currently 12.34%.

Analysts Set New Price Targets

A number of analysts recently commented on CHE shares. Wall Street Zen cut shares of Chemed from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Royal Bank Of Canada decreased their price target on shares of Chemed from $640.00 to $589.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. 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 report on Tuesday, September 2nd. Bank of America reduced their target price on shares of Chemed from $708.00 to $650.00 and set a "buy" rating on the stock in a report on Monday, June 30th. Finally, Oppenheimer cut their price target on shares of Chemed from $650.00 to $580.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Four equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $592.25.

Insider Activity

In other news, EVP Nicholas Michael Westfall sold 10,012 shares of the business's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $421.91, for a total transaction of $4,224,162.92. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director George J. Walsh III bought 200 shares of the firm's stock in a transaction dated Monday, August 4th. The shares were acquired at an average cost of $417.10 per share, with a total value of $83,420.00. Following the completion of the transaction, 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 currently owned by corporate insiders.

Hedge Funds Weigh In On Chemed

Hedge funds have recently modified their holdings of the company. Kayne Anderson Rudnick Investment Management LLC boosted its position in shares of Chemed by 2.6% during the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 597,175 shares of the company's stock worth $367,454,000 after acquiring an additional 15,041 shares during the last quarter. Neuberger Berman Group LLC boosted its position in shares of Chemed by 3.9% during the first quarter. Neuberger Berman Group LLC now owns 521,212 shares of the company's stock worth $320,712,000 after acquiring an additional 19,650 shares during the last quarter. Acadian Asset Management LLC boosted its position in shares of Chemed by 69.3% during the second quarter. Acadian Asset Management LLC now owns 250,722 shares of the company's stock worth $122,056,000 after acquiring an additional 102,597 shares during the last quarter. Boston Trust Walden Corp boosted its position in shares of Chemed by 0.4% during the second quarter. Boston Trust Walden Corp now owns 247,434 shares of the company's stock worth $120,483,000 after acquiring an additional 1,083 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted 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 worth $134,547,000 after acquiring an additional 19,421 shares during the last quarter. 95.85% of the stock is currently owned by institutional investors.

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.

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