Chemed (NYSE:CHE) Reaches New 12-Month Low on Disappointing Earnings

Shares of Chemed Corporation (NYSE:CHE) hit a new 52-week low on Thursday following a dissappointing earnings announcement. The stock traded as low as $395.00 and last traded at $401.9530, with a volume of 175330 shares. The stock had previously closed at $466.60.

The company reported $6.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.02 by ($0.60). Chemed had a net margin of 10.48% and a return on equity of 24.70%. The company had revenue of $639.34 million during the quarter, compared to analyst estimates of $659.09 million. During the same quarter in the previous year, the business posted $6.83 earnings per share. The firm’s revenue was down .1% on a year-over-year basis. Chemed has set its FY 2026 guidance at 23.250-24.250 EPS.

Chemed Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Monday, February 23rd will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date is Monday, February 23rd. Chemed’s dividend payout ratio is presently 12.69%.

Key Chemed News

Here are the key news stories impacting Chemed this week:

• Positive Sentiment: VITAS revenue growth guidance: Chemed forecasted 5.5%–6.5% revenue growth at VITAS for 2026, which supports underlying hospice volume recovery expectations. VITAS guidance article
• Neutral Sentiment: FY2026 EPS guidance roughly in line with Street: Management set full-year EPS at $23.25–$24.25, close to consensus (~$23.42), providing a framework for the year but signaling back‑half weighting of results. Guidance/press release
• Neutral Sentiment: Earnings materials/transcript available: Investors can review the Q4 call and transcript for management’s commentary on Roto-Rooter headwinds and hospice recovery timing. Earnings call transcript
• Negative Sentiment: Q4 results missed consensus: Reported EPS and sales fell short (EPS miss vs. consensus, revenue slightly down Y/Y), with gross and operating profit declines — the immediate trigger for the share weakness. Q4 results summary
• Negative Sentiment: Operating cash and liquidity deterioration: Operating cash flow fell materially year‑over‑year, cash balances dropped and capex rose — raising short-term liquidity and free‑cash concerns. Financials and cash flow details
• Negative Sentiment: Regulatory/legal overhang: Johnson Fistel launched an investigation into potential securities claims involving Chemed’s executives, creating litigation risk and added uncertainty for shareholders. Johnson Fistel investigation
• Negative Sentiment: Analyst and market reaction: BofA cut Chemed to neutral after the Q4 miss; the stock is trading lower on elevated volume as some investors trim exposure. BofA rating action
• Negative Sentiment: Insider selling noted: Recent insider sales (per reporting) add to negative signal for some investors monitoring insider confidence. Insider trading details

Wall Street Analysts Forecast Growth

CHE has been the subject of several analyst reports. Jefferies Financial Group cut shares of Chemed from a “buy” rating to a “hold” rating in a report on Thursday, January 22nd. Royal Bank Of Canada lowered their target price on shares of Chemed from $589.00 to $572.00 and set an “outperform” rating for the company in a research note on Monday, November 10th. Weiss Ratings restated a “hold (c-)” rating on shares of Chemed in a research note on Wednesday, January 21st. Finally, Zacks Research raised Chemed from a “strong sell” rating to a “hold” rating in a research report on Thursday, October 30th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, Chemed presently has a consensus rating of “Moderate Buy” and an average price target of $555.50.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CHE. Geneos Wealth Management Inc. increased its holdings in shares of Chemed by 330.4% in the first quarter. Geneos Wealth Management Inc. now owns 99 shares of the company’s stock valued at $61,000 after purchasing an additional 76 shares during the period. Brighton Jones LLC purchased a new position in Chemed in the 2nd quarter valued at $224,000. Nisa Investment Advisors LLC increased its stake in Chemed by 1.1% in the 2nd quarter. Nisa Investment Advisors LLC now owns 6,191 shares of the company’s stock valued at $3,015,000 after buying an additional 69 shares during the period. Bessemer Group Inc. raised its position in Chemed by 7.7% during the 2nd quarter. Bessemer Group Inc. now owns 1,023 shares of the company’s stock worth $499,000 after buying an additional 73 shares during the last quarter. Finally, Teacher Retirement System of Texas raised its position in Chemed by 6.7% during the 2nd quarter. Teacher Retirement System of Texas now owns 14,711 shares of the company’s stock worth $7,163,000 after buying an additional 918 shares during the last quarter. 95.85% of the stock is owned by hedge funds and other institutional investors.

Chemed Trading Down 15.0%

The company has a market cap of $5.62 billion, a price-to-earnings ratio of 21.59, a PEG ratio of 2.27 and a beta of 0.44. The company’s 50 day moving average price is $446.56 and its 200 day moving average price is $444.05.

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.