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

Chemed Corporation (NYSE:CHE) gapped up prior to trading 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 earnings per share 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% compared to the same quarter last year. During the same quarter in the prior year, the business earned $5.27 EPS.

Chemed Increases Dividend

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

Chemed News Summary

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 research firms have commented on CHE. UBS Group began coverage on shares of Chemed in a research report on Friday, September 25th. They set a “buy” rating and a $650.00 price objective for the company. Weiss Ratings upgraded Chemed from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Bank of America reaffirmed a “neutral” rating on shares of Chemed in a research note on Wednesday, July 29th. Wall Street Zen upgraded Chemed from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 10th. Finally, Royal Bank Of Canada lifted their target price on Chemed from $436.00 to $548.00 and gave the stock a “sector perform” rating in a report on Thursday, July 30th. Three analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $583.60.

Insiders Place Their Bets

In other news, EVP Spencer Lee sold 1,000 shares of the company’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 represents a 6.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Kevin McNamara sold 2,000 shares of the stock in a transaction that occurred on Monday, September 28th. The stock was sold at an average price of $513.45, for a total value of $1,026,900.00. Following the completion of the sale, the chief executive officer owned 66,418 shares in the company, valued at approximately $34,102,322.10. The trade was a 2.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 9,190 shares of company stock valued at $4,833,160 over the last 90 days. Insiders own 3.33% of the company’s stock.

Institutional Trading of Chemed

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. North Dakota State Investment Board bought a new stake in shares of Chemed during the third quarter valued at approximately $201,000. VestGen Advisors LLC purchased a new stake in shares of Chemed in the third quarter valued at approximately $202,000. Oppenheimer & Co. Inc. grew its stake in Chemed by 0.3% in the third quarter. Oppenheimer & Co. Inc. now owns 14,568 shares of the company’s stock worth $7,358,000 after purchasing an additional 47 shares in the last quarter. Signaturefd LLC grew its stake in Chemed by 28.3% in the third quarter. Signaturefd LLC now owns 367 shares of the company’s stock worth $185,000 after purchasing an additional 81 shares in the last quarter. Finally, Fifth Third Wealth Advisors LLC grew its stake in Chemed by 7.4% in the third quarter. Fifth Third Wealth Advisors LLC now owns 550 shares of the company’s stock worth $278,000 after purchasing an additional 38 shares in the last quarter. Hedge funds and other institutional investors own 95.85% of the company’s stock.

Chemed Stock Performance

The firm has a fifty day simple moving average of $514.46 and a 200 day simple moving average of $461.61. The company has a market capitalization of $7.27 billion, a PE ratio of 27.68 and a beta of 0.51.

About Chemed

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.