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CHE · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Chemed Corporation (CHE) stock moving?
Chemed's third-quarter 2026 report was the main driver of recent trading. Revenue rose 10.6% to $690.9M, and adjusted diluted EPS rose 28.1% to $6.75. VITAS grew strongly, with net patient revenue up 12.2%, average daily census up 9.4%, and adjusted EBITDA margin (excluding Medicare Cap) up 318 basis points to 20.2%. Roto-Rooter was weaker, with adjusted EBITDA down 2.5% and margin down 213 basis points, and management is working to stabilize Google-driven marketing costs. The stock jumped about 7% at the open on Oct 28, from a close of $509.09 to an intraday high of $562.24, on heavy volume of 325K shares, then closed at $533.36. It has since held in a $528 to $548 range and closed at $544.49 on Nov 10, close to the Nov 4 close of $548.64. Analysts raised targets after the report, with Jefferies upgrading to Buy at $620, UBS at $675, Oppenheimer at $625, RBC at $585 (Sector Perform), and Bank of America at $555 (Buy). Most targets sit above the current price. The $0.70 quarterly dividend declared Nov 6 adds income support. Risks include Medicare Cap exposure, the Roto-Rooter margin decline, and the cost of Google-driven marketing.
News behind the analysis
- Chemed Corporation Provides Business Performance Update at UBS Global Healthcare ConferenceChemed reported strong growth for its VITAS Healthcare division and gave a performance update for Roto-Rooter at the UBS Global Healthcare Conference.
- Chemed Corporation Declares Quarterly Dividend of 70 CentsChemed declared a quarterly cash dividend of 70 cents per share, payable to shareholders in December 2026.
- Chemed Corporation to Present at the UBS 2026 Global Healthcare ConferenceChemed announced a presentation at the UBS 2026 Global Healthcare Conference in November 2026.
- UBS Maintains Buy on Chemed, Raises Price Target to $675UBS kept its Buy rating on Chemed and raised its price target to $675 after the third-quarter 2026 results.
- Oppenheimer Maintains Outperform on Chemed, Raises Price Target to $625Oppenheimer kept its Outperform rating on Chemed and raised its price target to $625 following the quarterly report.
- RBC Raises Price Target on Chemed to $585 From $548, Keeps Sector Perform RatingRBC Capital Markets raised its price target on Chemed to $585 from $548 and kept its Sector Perform rating.
- Jefferies Upgrades Chemed to Buy, Raises Price Target to $620Jefferies upgraded Chemed from Hold to Buy with a new $620 price target.
- Chemed Q3 2026 Earnings Call TranscriptChemed reported Q3 2026 results on Oct 28 with adjusted diluted EPS of $6.75, up 28.1%, and revenue up 10.6% to $690.9M.
About Chemed Corporation
Chemed is a Cincinnati-based holding company that owns two very different businesses: VITAS Healthcare, one of the largest US hospice and end-of-life care providers, and Roto-Rooter, the nation's largest plumbing and drain-cleaning service company. Pairing a Medicare-funded healthcare business with a consumer home-services brand is unusual, and the company has a long record of steady dividends and share buybacks.
How it makes money
VITAS brings in roughly 55–60% of revenue. Most of it comes from Medicare, which pays daily rates for hospice care delivered mostly in patients' homes, plus some inpatient and continuous care. Roto-Rooter brings in roughly 40–45% of revenue. It charges homeowners and businesses for plumbing, drain cleaning, excavation and water-damage restoration, using company-owned branches along with franchisees, and it has been buying back franchise territories. Total annual revenue is roughly $2.5 billion (approximate).
What usually moves CHE
- Medicare hospice rate updates and spending caps
- Government regulation and audits of hospice billing
- Hospice patient admissions and average length of stay
- Roto-Rooter demand, lead generation and water-restoration jobs
- Labor costs for nurses and technicians