Chemed (NYSE:CHE) Shares Gap Up After Strong Earnings

Chemed Corporation (NYSE:CHE) shares 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, topping 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 analysts’ expectations of $659.22 million. During the same quarter in the prior year, the business posted $5.63 EPS. The business’s revenue 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 declared a quarterly dividend, which was paid on Friday, March 13th. Investors 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 13.06%.

More Chemed News

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

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CHE. Oppenheimer decreased their price objective on Chemed from $580.00 to $500.00 and set an “outperform” rating on the stock in a report on Friday, February 27th. Weiss Ratings lowered Chemed from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, April 13th. Zacks Research lowered Chemed from a “hold” rating to a “strong sell” rating in a report on Wednesday, March 4th. Royal Bank Of Canada restated a “sector perform” rating and set a $422.00 price objective (down from $572.00) on shares of Chemed in a research report on Friday, February 27th. Finally, Jefferies Financial Group lowered Chemed from a “buy” rating to a “hold” rating in a research note on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $498.00.

Insider Buying and Selling

In other Chemed news, CEO Kevin J. Mcnamara sold 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $403.18, for a total value of $806,360.00. Following the completion of the sale, the chief executive officer owned 93,719 shares of the company’s stock, valued at approximately $37,785,626.42. This trade represents a 2.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 3.29% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. boosted its position in shares of Chemed by 2,444,879.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 5,550,103 shares of the company’s stock valued at $2,374,667,000 after buying an additional 5,549,876 shares during the last quarter. JPMorgan Chase & Co. boosted its position in Chemed by 4.4% in the fourth quarter. JPMorgan Chase & Co. now owns 521,900 shares of the company’s stock worth $223,301,000 after purchasing an additional 21,932 shares during the last quarter. William Blair Investment Management LLC raised its stake in shares of Chemed by 13.6% in the third quarter. William Blair Investment Management LLC now owns 385,124 shares of the company’s stock valued at $172,435,000 after buying an additional 46,038 shares during the period. AQR Capital Management LLC increased its stake in shares of Chemed by 89.2% in the fourth quarter. AQR Capital Management LLC now owns 325,579 shares of the company’s stock worth $139,302,000 after purchasing an additional 153,469 shares in the last quarter. Finally, TD Asset Management Inc increased its stake in shares of Chemed by 7.5% in the fourth quarter. TD Asset Management Inc now owns 324,546 shares of the company’s stock worth $138,860,000 after purchasing an additional 22,715 shares in the last quarter. Hedge funds and other institutional investors own 95.85% of the company’s stock.

Chemed Stock Performance

The company has a market capitalization of $6.28 billion, a P/E ratio of 23.47, a price-to-earnings-growth ratio of 1.48 and a beta of 0.49. The business has a 50 day moving average of $404.22 and a 200-day moving average of $426.40.

About Chemed

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.