Chemed Stock Down 15% in a Year as One Fund Builds a $5.56 Million Stake
Key Points
Barington Companies Management initiated a 13,000-share position in Chemed during the fourth quarter.
The estimated trade value was $5.56 million.
The position represents 3.65% of 13F reportable assets under management as of December 31, 2025.
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.
What happened
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.
What else to know
- 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.
Company overview
| 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 |
Company snapshot
- 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.
What this transaction means for investors
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.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bill Holdings. The Motley Fool has a disclosure policy.