Chemed (NYSE:CHE) Shares Gap Up Following Earnings Beat

Posted by Brenda Bartman on Oct 28th, 2026

Chemed Corporation (NYSE:CHE – Get Free Report)’s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $509.09, but opened at $544.93. Chemed shares last traded at $551.63, with a volume of 24,649 shares traded.

The company reported $6.75 EPS for the quarter, beating the consensus estimate of $6.44 by $0.31. The firm had revenue of $690.94 million for the quarter, compared to analysts’ expectations of $685.04 million. The business’s quarterly revenue was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $5.27 EPS.

Chemed Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Monday, August 17th were given a dividend of $0.70 per share. This is a positive change from Chemed’s previous quarterly dividend of $0.60. The ex-dividend date of this dividend was Monday, August 17th. This represents a $2.80 dividend on an annualized basis and a yield of 0.5%. Chemed’s payout ratio is 14.06%.

Key Headlines Impacting Chemed

Here are the key news stories impacting Chemed this week:

Positive Sentiment: Quarterly results exceeded expectations. Adjusted earnings per share rose 28.1% year over year to $6.75, surpassing the $6.44 analyst consensus, while revenue increased 10.6% to $690.9 million, ahead of the $685.0 million estimate. GAAP diluted EPS increased 22.2% to $5.45. Chemed Q3 Adjusted Earnings, Revenue Rise
Positive Sentiment: VITAS Healthcare was the primary growth driver. Revenue advanced 12.2% to $457.4 million, average daily census rose 9.4% to 24,428 patients, and admissions increased 7.2%. Adjusted EBITDA excluding Medicare Cap climbed 31.4% to $92.5 million, expanding the segment margin by 318 basis points to 20.2%. Chemed Reports Third-Quarter 2026 Results
Positive Sentiment: Management outlook remained favorable. Chemed said full-year 2026 adjusted EPS is expected to be at or slightly above the high end of guidance issued in July, supporting investor confidence in continued earnings momentum.
Positive Sentiment: Capital allocation was supportive. Chemed repurchased 125,000 shares for approximately $66 million during the quarter and reacquired California Roto-Rooter franchise territories for about $62.5 million, potentially strengthening long-term growth and shareholder returns.
Neutral Sentiment: Roto-Rooter produced mixed results. Revenue rose 7.5% to $233.5 million, but segment net income declined 1.8%, adjusted EBITDA fell 2.5%, and the EBITDA margin contracted to 20.6% from the prior year.
Negative Sentiment: Recent insider-trading data showed multiple executives selling shares and no reported insider purchases over the past six months. These transactions may create a modest sentiment overhang, although they do not change the strong quarterly operating results.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on CHE shares. UBS Group began coverage on shares of Chemed in a report on Friday, September 25th. They issued a “buy” rating and a $650.00 price target for the company. Royal Bank Of Canada increased their price objective on shares of Chemed from $436.00 to $548.00 and gave the company a “sector perform” rating in a research note on Thursday, July 30th. Bank of America reissued a “neutral” rating on shares of Chemed in a report on Wednesday, July 29th. Wall Street Zen raised shares of Chemed from a “buy” rating to a “strong-buy” rating in a research note on Saturday, October 10th. Finally, Jefferies Financial Group raised shares of Chemed from a “hold” rating to a “buy” rating and set a $620.00 price objective for the company in a research note on Wednesday. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $583.60.

Get Our Latest Report on CHE

Insider Transactions at Chemed

In other news, Director Patrick Grace sold 190 shares of Chemed stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $532.00, for a total value of $101,080.00. Following the transaction, the director owned 3,533 shares of the company’s stock, valued at $1,879,556. The trade was a 5.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Spencer Lee sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $541.04, for a total transaction of $541,040.00. Following the transaction, the executive vice president owned 13,912 shares of the company’s stock, valued at approximately $7,526,948.48. This trade represents a 6.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 9,190 shares of company stock valued at $4,833,160 in the last 90 days. Insiders own 3.33% of the company’s stock.

Hedge Funds Weigh In On Chemed

A number of large investors have recently made changes to their positions in CHE. BlackRock Inc. acquired a new stake in shares of Chemed in the 2nd quarter worth $691,290,000. First Trust Advisors LP raised its stake in Chemed by 24.7% in the first quarter. First Trust Advisors LP now owns 236,392 shares of the company’s stock valued at $89,295,000 after buying an additional 46,791 shares during the last quarter. Copeland Capital Management LLC raised its stake in Chemed by 1.3% in the third quarter. Copeland Capital Management LLC now owns 146,833 shares of the company’s stock valued at $74,162,000 after buying an additional 1,826 shares during the last quarter. Bank of America Corp DE purchased a new stake in Chemed in the second quarter valued at about $48,255,000. Finally, Caisse de depot et placement du Quebec acquired a new stake in Chemed in the second quarter worth about $44,309,000. 95.85% of the stock is owned by institutional investors and hedge funds.

Chemed Price Performance

The firm has a market cap of $7.27 billion, a price-to-earnings ratio of 27.68 and a beta of 0.51. The firm has a fifty day simple moving average of $514.46 and a two-hundred day simple moving average of $461.61.

Chemed Company Profile

(Get Free Report)

Chemed Corporation (NYSE:CHE) is a Cincinnati, Ohio-based company that provides healthcare and residential and commercial services through two operating businesses: VITAS Healthcare and Roto-Rooter. Its operations serve customers primarily in the United States, with Roto-Rooter also providing services in Canada.

VITAS Healthcare is a provider of hospice and palliative care for individuals with advanced illnesses. The business delivers care in patients’ homes, hospice inpatient units, hospitals, nursing facilities and other care settings.