Chemed (NYSE:CHE) Shares Gap Up After Strong Earnings
by Mitch Edgeman · The Markets DailyChemed Corporation (NYSE:CHE – Get Free Report) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $382.97, but opened at $444.50. Chemed shares last traded at $434.47, with a volume of 83,018 shares.
The company reported $5.65 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.30 by $0.35. Chemed had a return on equity of 25.66% and a net margin of 10.48%.The company had revenue of $657.51 million for the quarter, compared to analyst estimates of $659.22 million. During the same period in the previous year, the company posted $5.63 EPS. The firm’s revenue for the quarter was up 1.6% compared to the same quarter last year. Chemed has set its FY 2026 guidance at 24.000-24.75 EPS.
Chemed Dividend Announcement
The firm also recently announced a quarterly dividend, which was paid on Friday, March 13th. Shareholders of record on Monday, February 23rd were paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Monday, February 23rd. Chemed’s dividend payout ratio is currently 13.06%.
Trending Headlines about Chemed
Here are the key news stories impacting Chemed this week:
- Positive Sentiment: Company raised full‑year EPS guidance to $24.00–$24.75, above Street estimates, signaling stronger outlook and driving bullish investor reaction. GlobeNewswire Q1 Release
- Positive Sentiment: Adjusted EPS beat consensus — adjusted EPS of $5.65 topped analyst expectations, supporting the rally despite mixed top‑line news. Zacks Earnings Report
- Positive Sentiment: VITAS hospice unit showed clear strength (net patient revenue +3.1%, admissions +6.9%, ADC +2.2%), the primary driver of the improved guidance and margin resilience. GlobeNewswire VITAS Details
- Positive Sentiment: Share repurchase activity (500,000 shares bought in the quarter) and bolt‑on Roto‑Rooter franchise purchases ($20.6M) support capital allocation and EPS accretion narrative. GlobeNewswire Capital Actions
- Neutral Sentiment: Revenue was essentially flat — consolidated revenue rose ~1.6% to $657.5M, roughly in line with expectations but not a clear upside driver. MarketBeat Summary
- Neutral Sentiment: Market commentary and analyst coverage remain mixed but supportive (recent targets cluster around mid‑$400s to $500), so further upside may depend on sustained VITAS trends and Roto‑Rooter recovery. QuiverQuant Analyst Notes
- Negative Sentiment: Roto‑Rooter showed weakness: revenue down ~0.9% and adjusted EBITDA declined ~9.6%, which could pressure consolidated margins if the trend persists. GlobeNewswire Roto‑Rooter Results
- Negative Sentiment: GAAP EPS and some cash/balance‑sheet metrics showed deterioration (GAAP EPS $4.84, certain cash balances and liabilities moved unfavorably in third‑party data), and recent insider sales were noted — factors that could concern more conservative investors. QuiverQuant Financials
Analyst Ratings Changes
A number of equities analysts have weighed in on CHE shares. Jefferies Financial Group lowered Chemed from a “buy” rating to a “hold” rating in a research note on Thursday, January 22nd. Oppenheimer decreased their target price on Chemed from $580.00 to $500.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. Royal Bank Of Canada restated a “sector perform” rating and issued a $422.00 target price (down from $572.00) on shares of Chemed in a research note on Friday, February 27th. Zacks Research lowered Chemed from a “hold” rating to a “strong sell” rating in a research note on Wednesday, March 4th. Finally, Weiss Ratings lowered Chemed from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, April 13th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Chemed currently has an average rating of “Hold” and a consensus price target of $498.00.
Check Out Our Latest Analysis on CHE
Insiders Place Their Bets
In related news, CEO Kevin J. Mcnamara sold 2,000 shares of the stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $403.18, for a total transaction of $806,360.00. Following the completion of the sale, the chief executive officer directly owned 93,719 shares in the company, valued at $37,785,626.42. This represents a 2.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 3.29% of the stock is owned by corporate insiders.
Institutional Investors Weigh In On Chemed
Several institutional investors have recently bought and sold shares of CHE. Geneos Wealth Management Inc. boosted its holdings in Chemed by 330.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 99 shares of the company’s stock valued at $61,000 after acquiring an additional 76 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in Chemed by 67.0% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 11,365 shares of the company’s stock valued at $5,534,000 after acquiring an additional 4,560 shares during the period. Marshall Wace LLP purchased a new stake in Chemed during the 2nd quarter valued at about $579,000. Brown Advisory Inc. boosted its holdings in Chemed by 36.9% during the 2nd quarter. Brown Advisory Inc. now owns 549 shares of the company’s stock valued at $267,000 after acquiring an additional 148 shares during the period. Finally, Cerity Partners LLC boosted its holdings in Chemed by 237.7% during the 2nd quarter. Cerity Partners LLC now owns 4,451 shares of the company’s stock valued at $2,165,000 after acquiring an additional 3,133 shares during the period. 95.85% of the stock is currently owned by hedge funds and other institutional investors.
Chemed Trading Up 12.3%
The company has a market capitalization of $6.28 billion, a PE ratio of 23.47, a PEG ratio of 1.48 and a beta of 0.49. The firm has a fifty day moving average of $404.22 and a two-hundred day moving average of $426.40.
Chemed Company Profile
Chemed Corporation is a diversified provider of essential home services and healthcare solutions in the United States. Headquartered in Cincinnati, Ohio, the company operates through two principal business segments—Roto-Rooter and Vitas Healthcare. Since its founding in 1974, Chemed has built a reputation for reliability and expertise, serving both residential and commercial customers across a broad range of markets.
The Roto-Rooter segment offers a comprehensive suite of plumbing, drain cleaning and water restoration services.