Chemed Corp stock hits 52-week low at 468.3 USD

Chemed Corp (NYSE:CHE)’s stock has reached a new 52-week low, hitting a price of 468.3 USD. The company, with a market capitalization of $6.88 billion, maintains strong fundamentals with a GOOD financial health rating according to InvestingPro analysis. This milestone marks a significant point for the company, which has experienced a decline in its stock value over the past year. The 1-year change data reveals a decrease of 11.84%, though InvestingPro analysis indicates the stock is currently in oversold territory. Trading at a P/E ratio of 27.14, the company has maintained its dividend payments for 55 consecutive years, demonstrating long-term stability despite current market challenges. Investors and analysts will be closely monitoring Chemed Corp’s performance to gauge potential recovery or further declines in the coming months. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels, with 11 additional exclusive insights available to subscribers.

In other recent news, Chemed Corporation reported weaker-than-expected Medicare admissions in Florida, leading to projected revenue limitations for its VITAS subsidiary. The company anticipates a Medicare Cap revenue limitation of $18 million to $25 million for the 2025 fiscal year, which was not included in previous earnings guidance. Chemed also noted unexpected weakness in Roto-Rooter’s residential business demand during the second quarter, although commercial demand showed improvement. RBC Capital has adjusted its price target for Chemed to $640 from $674, maintaining an Outperform rating, citing the Medicare cap limitations as a factor affecting the 2025 outlook. Meanwhile, BofA Securities maintained a Buy rating with a $708 price target, emphasizing Chemed’s proactive approach to managing Medicare cap challenges and its potential for continued financial performance. The company’s annual stockholders’ meeting resulted in the election of all nominated directors and the approval of the 2025 Stock Incentive Plan. Additionally, Chemed’s appointment of PricewaterhouseCoopers LLP as independent accountants was ratified. Investors are likely to keep a close watch on Chemed’s strategies to handle the Medicare cap situation, which is pivotal for the company’s success.

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