Chemed Stock Down 15% in a Year as One Fund Builds a $5.56 Million Stake
- Finance
ThePostMaster- 0
- 10 minutes read
On February 12, 2026, Barington Companies Management disclosed a new position in Chemed (NYSE:CHE), acquiring 13,000 shares in an estimated $5.56 million trade.
According to an SEC filing dated February 12, 2026, Barington Companies Management established a new position in Chemed, acquiring 13,000 shares. The quarter-end value of the stake was $5.56 million.
This new position accounts for 3.65% of Barington Companies Management’s reportable U.S. equity assets following the filing.
Top five holdings after the filing:
NYSE: M: $28.66 million (18.8% of AUM)
NASDAQ: MATW: $26.12 million (17.1% of AUM)
NYSE: VSCO: $23.02 million (15.1% of AUM)
NYSE: BILL: $21.27 million (14.0% of AUM)
NYSE: GIL: $15.94 million (10.5% of AUM)
As of February 12, 2026, shares of Chemed were priced at $463.95, down 15.18% over the prior year and trailing the S&P 500 by 28.09 percentage points.
Metric | Value |
|---|---|
Price (as of market close February 12, 2026) | $463.95 |
Market capitalization | $6.76 billion |
Revenue (TTM) | $2.53 billion |
Net income (TTM) | $278.81 million |
Chemed operates through two main segments: VITAS, which provides hospice and palliative care services, and Roto-Rooter, offering plumbing, drain cleaning, and water restoration services.
The company generates revenue primarily from healthcare services delivered to patients and from residential and commercial plumbing and maintenance solutions.
Its primary customers include patients and families in need of end-of-life care, as well as residential and commercial property owners requiring plumbing and related services.
Chemed is a diversified services company with a strong presence in both the healthcare and essential home services markets. Its dual-segment model enables stable revenue streams by serving critical needs in hospice care and property maintenance. The company leverages its national network, brand strength, and operational expertise to maintain a competitive position in its core markets.
This move matters because it signals conviction in a steady, cash-rich operator that just hit a rough patch in sentiment, but not in solvency. Chemed generated $624.9 million in third-quarter revenue, up 3.1% year over year, but adjusted diluted EPS came in at $5.27, down 6.6% year over year. GAAP EPS was harder-hit, falling 10.8% to $4.46, but that decline came alongside continued revenue growth at VITAS and Roto-Rooter and ongoing share repurchases.
VITAS revenue climbed 4.2% to $407.7 million, with admissions up 5.6% and average daily census up 2.5%. Roto-Rooter grew revenue 1.1% to $217.2 million, though margins compressed. Importantly, Chemed ended the quarter with $129.8 million in cash and no current or long-term debt, and it reiterated full-year guidance of $22.00 to $22.30 per share.
Within a portfolio dominated by consumer and technology names like Macy’s, Victoria’s Secret, and BILL, this 3.65% position adds defensive exposure in the very different fields of hospice care and essential plumbing services. Ultimately, long-term investors should focus on cash generation, balance sheet strength, and demographic tailwinds in hospice, not a single quarter’s margin pressure.
