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

Chemed Corporation (NYSE:CHE)’s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. 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. The business had revenue of $657.51 million for the quarter, compared to the consensus estimate of $659.22 million. Chemed had a return on equity of 25.70% and a net margin of 10.23%.The firm’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $5.63 earnings per share. 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 issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Monday, February 23rd. Chemed’s dividend payout ratio (DPR) is currently 13.08%.

Key Headlines Impacting Chemed

Here are the key news stories impacting Chemed this week:

• Positive Sentiment: Company raised FY2026 EPS guidance to $24.00–$24.75, above prior consensus, giving investors a better earnings outlook for the year. Chemed Reports First-Quarter 2026 Results
• Positive Sentiment: Adjusted Q1 EPS of $5.65 beat Street estimates (around $5.30), signaling core profitability resilience and helping lift sentiment. Chemed (CHE) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: VITAS (hospice) showed revenue and operating improvements (net patient revenue +3.1%, higher average daily census and admissions), which management cited when raising guidance. Chemed Reports First-Quarter 2026 Results
• Neutral Sentiment: Revenue was roughly flat/only modestly up (+1.6% to $657.5M), essentially in line with expectations — not a growth surprise but not a miss either. Press Release / Slide Deck
• Neutral Sentiment: Cash from operations improved meaningfully and the company repurchased 500,000 shares and closed two Roto‑Rooter franchise purchases (~$20.6M) — capital allocation activity that investors may view positively over time. Chemed Reports First-Quarter 2026 Results
• Negative Sentiment: Roto‑Rooter showed revenue and EBITDA declines and margin compression (notable drop in segment EBITDA and margins), a near‑term drag on consolidated profitability. Chemed earnings on deck as hospice, plumbing units face tests
• Negative Sentiment: GAAP diluted EPS and net income were slightly down year‑over‑year, and balance‑sheet notes (lower cash, higher liabilities) plus recent insider sales may concern some investors focused on capital structure. Chemed Corp (CHE) Stock Rises on Q1 2026 Earnings

Analyst Upgrades and Downgrades

CHE has been the topic of a number of research analyst reports. Jefferies Financial Group downgraded Chemed from a “buy” rating to a “hold” rating in a report on Thursday, January 22nd. Zacks Research downgraded Chemed from a “hold” rating to a “strong sell” rating in a report on Wednesday, March 4th. Oppenheimer reduced their target price 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 downgraded Chemed from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, April 13th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $422.00 target price (down from $572.00) on shares of Chemed in a report on Friday, February 27th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $498.00.

Insider Buying and Selling at Chemed

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of CHE. Northwestern Mutual Wealth Management Co. raised its position in shares of Chemed by 2,444,879.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 5,550,103 shares of the company’s stock worth $2,374,667,000 after acquiring an additional 5,549,876 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of Chemed by 122.7% in the 3rd quarter. JPMorgan Chase & Co. now owns 499,968 shares of the company’s stock worth $223,856,000 after acquiring an additional 275,423 shares in the last quarter. Norges Bank bought a new position in shares of Chemed in the 4th quarter worth about $76,067,000. AQR Capital Management LLC raised its position in shares of Chemed by 89.2% in the 4th quarter. AQR Capital Management LLC now owns 325,579 shares of the company’s stock worth $139,302,000 after acquiring an additional 153,469 shares in the last quarter. Finally, Victory Capital Management Inc. raised its position in shares of Chemed by 1,260.2% in the 4th quarter. Victory Capital Management Inc. now owns 117,685 shares of the company’s stock worth $50,353,000 after acquiring an additional 109,033 shares in the last quarter. 95.85% of the stock is owned by institutional investors.

Chemed Trading Up 9.8%

The company has a 50-day moving average price of $403.17 and a two-hundred day moving average price of $426.30. The stock has a market capitalization of $6.15 billion, a P/E ratio of 22.92, a price-to-earnings-growth ratio of 1.52 and a beta of 0.49.

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.