Exploring Chemed Corporation (CHE) Investor Profile: Who’s Buying and Why?

You're looking at Chemed Corporation (CHE), a company with a dual-engine business model-VITAS Healthcare and Roto-Rooter-and you need to know who is really calling the shots and why the stock is down when the full-year guidance looks strong. Honestly, the investor profile tells the whole story: this is a stock overwhelmingly controlled by passive giants, which means active management and activist pressure matter even more. Over 85% of the company's outstanding shares are held by institutional investors, with Vanguard holding roughly 10.90% and BlackRock, Inc. close behind at 9.47% as of the third quarter of 2025, so their collective influence is defintely the primary driver of capital allocation decisions. This high concentration is why you see the market reacting sharply to mixed results, like the Q3 2025 revenue of $624.9 million-a solid 3.1% increase-but a simultaneous drop in adjusted diluted earnings per share (EPS) to $5.27, a 6.6% decline year-over-year. The market is pricing in the margin pressure, which explains the year-to-date total return being down about -17.33% as of late October 2025, even with management reiterating a full-year adjusted EPS guidance of $22.00 to $22.30. We need to look past the headline numbers and see if the big money is buying the long-term narrative or selling the near-term risk. What are Vanguard and BlackRock doing right now?

Who Invests in Chemed Corporation (CHE) and Why?

The investor profile for Chemed Corporation (CHE) is dominated by large, sophisticated institutional money, making it a classic institutional-grade stock. This heavy institutional presence, sitting at approximately 95.85% of the outstanding shares as of mid-2025, tells you the market sees Chemed as a stable, quality holding.

You see the world's largest asset managers, like The Vanguard Group and BlackRock, Inc., holding significant stakes. For instance, The Vanguard Group holds about 1.54 million shares, representing a 10.90% stake, while BlackRock, Inc. holds roughly 1.34 million shares, a 9.47% stake, as of late September 2025. This leaves the float for individual, or retail, investors relatively small, but their collective impact on daily trading volume is still notable.

Here is a quick breakdown of the major investor types:

• Institutional Investors: Approximately 95.85% (Mutual Funds, Pension Funds, Hedge Funds).
• Corporate Insiders: About 3.29% (Executives and Directors).
• Retail Investors: The remaining float, which is a small but active group.

The Core Investment Motivations: Growth and Defensive Quality

Investors are drawn to Chemed Corporation because of its unique, two-pronged business model, which offers both defensive stability and targeted growth. You get two distinct, essential services: VITAS Healthcare, a leader in end-of-life care, and Roto-Rooter, the nation's largest plumbing and drain cleaning provider. This counter-cyclical mix is a powerful risk mitigator.

The primary attraction is the strong financial performance and outlook for the 2025 fiscal year:

• Growth Prospects: Management's guidance for full-year 2025 Adjusted Diluted Earnings-per-Share (EPS) is strong, projected to be in the range of $22.00 to $22.30. The VITAS segment, in particular, is a growth engine, with full-year 2025 revenue (prior to Medicare Cap) estimated to increase by 7.5% to 8.5% over the previous year.
• Financial Strength: The company maintains a remarkably clean balance sheet, reporting no current or long-term debt as of September 30, 2025. Plus, the reported free cash flow of $278.54 million in a November 2025 analysis shows robust operational health.
• Shareholder Returns: While the dividend yield is modest at roughly 0.6% (based on a quarterly dividend of $0.60), the payout ratio is very low at around 11.11%. This signals that the company retains most of its earnings for growth, but it also means there is defintely ample room for future dividend increases, which is a major draw for long-term holders.

The market's consensus is clear: analysts have an average target price of $574.25, suggesting a potential upside of over 31% from a recent trading price, which appeals to growth-oriented funds.

Investment Strategies in Play

The strategies employed by Chemed's diverse investor base reflect its financial profile-a mix of stable earnings, high institutional ownership, and a strong balance sheet. You see three main approaches at work:

1. Passive, Long-Term Holding:

This is the dominant strategy. The massive holdings by index funds and quantitative funds from firms like Vanguard and BlackRock are essentially permanent capital. They hold Chemed because it's a component of the S&P MidCap 400 and other core indexes. They are not actively trading the stock; they are holding it for the long-haul demographic tailwinds in the hospice business and the consistent, recession-resistant cash flow from Roto-Rooter.

2. Quality and Value Investing:

Active institutional managers and hedge funds are attracted to Chemed's quality metrics. The company's forward price-to-earnings (P/E) ratio of 17.10 is appealing when compared to the broader market, signaling a value opportunity based on future earnings potential. Investors focused on quality look at the high return on equity (ROE) of 24.11% and the low debt, seeing a well-managed company that generates high returns without taking on excessive risk. They are buying for the long-term compounding of earnings.

3. Active Management and Momentum Trading:

Despite the passive core, there is active trading. You see funds like Norges Bank increasing their position by buying a high volume of shares, while others like Vanguard Group Inc. and William Blair Investment Management LLC have been net sellers in the past two years. This is normal churn, but it shows active managers are constantly re-evaluating the stock based on quarterly results, like the slight Q2 2025 EPS miss ($5.27 reported vs. $5.39 expected), and adjusting their exposure. They are looking for short-term mispricings around earnings reports or regulatory news related to the VITAS segment.

To understand the foundation of these investment decisions, you can dive deeper into the business structure and history here: Chemed Corporation (CHE): History, Ownership, Mission, How It Works & Makes Money.

Here's the quick math: The top five institutions alone control over 31% of the company, which gives them significant influence on governance and long-term strategy. This level of concentration is what keeps management focused on capital allocation-share repurchases, debt management, and targeted acquisitions-to keep the stock on track.

Institutional Ownership and Major Shareholders of Chemed Corporation (CHE)

If you're looking at Chemed Corporation (CHE), the first thing to understand is that it is overwhelmingly an institutionally-owned stock. This isn't a retail-investor playground; it's a battleground for large funds. As of the most recent filings, institutional investors and hedge funds control a massive 95.85% of the stock. That level of ownership means the stock's stability and strategic direction are largely dictated by a few hundred major players, not the day-to-day retail news cycle.

For context, the total institutional shares held long amount to approximately 16.95 million shares. That's a huge concentration of capital sitting on the stock, valued at roughly $7.79 billion. It's a clear signal that the market sees long-term, specialized value in Chemed's dual business model: the stability of VITAS Healthcare (hospice care) and the cash-generating power of Roto-Rooter (plumbing and drain cleaning). If you want a deeper dive into that structure, you can read more here: Chemed Corporation (CHE): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors and Their Stakes

The top holders of Chemed Corporation are the names you'd expect to see dominating the institutional landscape. These funds act as anchor investors, providing both liquidity and a baseline valuation for the stock. Their positions are measured in millions of shares, giving them significant voting power.

The largest shareholders, as of the latest reporting periods in Q3 2025, are led by the industry giants. Here's the quick math on the top five:

• Vanguard Group Inc.: Holds 1,538,487 shares, a 10.90% stake, valued at over $670.1 million.
• BlackRock, Inc.: Holds approximately 1,336,698 shares, a 9.47% stake, with a market value exceeding $582.2 million.
• Kayne Anderson Rudnick Investment Management Llc: Holds 589,837 shares, about a 4.18% stake.
• Neuberger Berman Group LLC: Holds 469,206 shares, a 3.33% stake, valued at over $204.3 million.
• State Street Corp: Holds 477,014 shares, a 3.38% stake.

You can see the sheer scale of the investment. When Vanguard Group Inc. or BlackRock, Inc. makes a move, the stock feels it.

Recent Shifts in Institutional Ownership

The recent ownership changes show a mixed but active picture, which is defintely something to watch for volatility. Over the last 12 months, the company saw approximately $1.89 billion in institutional inflows (buying) versus $1.21 billion in outflows (selling). This net buying pressure is a good sign, but the latest quarter saw some notable trimming from major players.

For example, Vanguard Group Inc. slightly reduced its position by 3.999% in the third quarter of 2025, selling over 64,000 shares. Similarly, BlackRock, Inc. reduced its holding by 3.088% in the second quarter of 2025. Still, other funds are clearly stepping in to pick up the slack. KBC Group NV, for instance, dramatically increased its position by 395.4% in Q2 2025, acquiring an additional 2,475 shares. Creative Planning also boosted its stake by 173.7% as of November 2025. This suggests a divergence in opinion: some large, passive index funds are rebalancing or taking profits, while other active managers see a buying opportunity.

The Impact of Institutional Investors on Strategy

With nearly 96% of the stock in institutional hands, these investors don't just influence the stock price; they shape the company's strategy. Their collective sentiment is a powerful force. When Chemed missed its Q3 2025 EPS estimate ($5.27 reported versus $5.39 expected), the stock experienced a dip, reflecting the immediate negative sentiment from these major holders.

Institutional backing also enables key capital allocation decisions. The Board's August 2025 authorization of an additional $300 million for stock repurchase is a direct response that benefits shareholders and signals management's confidence, a move often encouraged by large, long-term investors. The high ownership base generally translates to lower volatility compared to stocks dominated by retail traders, but any significant shift from a top-tier holder can still cause a sharp price movement. Essentially, you're investing in a stock where the big money has already done its due diligence and is betting heavily on the company's ability to deliver its FY 2025 EPS guidance of $22.00 to $22.30. Your action item is to watch the next round of 13F filings closely for any major shifts by the top five, because that's what moves this stock.

Key Investors and Their Impact on Chemed Corporation (CHE)

Chemed Corporation (CHE) is overwhelmingly owned by institutional investors, which means the stock's volatility and strategic direction are largely dictated by the movements of major funds. Institutional investors hold approximately 95.85% of the stock, a high concentration that signals confidence in its long-term, low-volatility profile (its Beta is around 0.43).

You need to pay attention to these institutional giants, as their buying and selling can create significant near-term price swings, even on days with no company news. The top three institutional holders alone control a substantial block of shares, making them defintely influential in any major corporate action, like the ongoing debate about the future of the Roto-Rooter segment. Mission Statement, Vision, & Core Values of Chemed Corporation (CHE).

Here's a snapshot of the largest institutional owners based on their latest Q3 2025 filings:

The sheer size of these holdings-Vanguard and BlackRock combined hold over 2.8 million shares-means they are essentially passive, long-term anchors. Their primary influence comes from their voting power on board elections and major proposals, not from day-to-day trading. They are buying the market, and Chemed Corporation is a stable, low-volatility component of that market.

Recent Investor Moves: Where the Money is Flowing in 2025

The most telling moves in 2025 have been a mix of new institutional positions and significant insider selling, which gives you a clear picture of the near-term risk-reward. While the big index funds mostly held or slightly trimmed, smaller, more active funds were making decisive moves.

For instance, KBC Group NV increased its position by a massive 395.4% in Q2 2025, acquiring 3,101 shares worth about $1.51 million. Integrated Quantitative Investments LLC and Connor Clark & Lunn Investment Management Ltd. also established new stakes in Q2, signaling fresh conviction from some corners of the market, which is a positive sign.

• Buy-Side Conviction: Connor Clark & Lunn bought a new stake of 6,144 shares, valued at approximately $2.99 million in Q2 2025.
• Notable Insider Selling: CEO Kevin J. McNamara sold 3,000 shares for about $1.38 million in Q3 2025. EVP Nicholas Michael Westfall also sold 10,012 shares for $4,224,162 in August 2025.
• Share Repurchases: Management is offsetting some of this selling pressure by actively buying back shares, repurchasing 407,500 shares for $180.8 million during Q3 2025.

Here's the quick math: Insider selling, especially following a Q3 earnings miss (EPS of $5.27 vs. consensus of $5.39), can spook the market. But the company's aggressive buyback, spending $180.8 million in one quarter, acts as a powerful counter-signal, showing management's belief that the stock is undervalued relative to their reaffirmed FY 2025 EPS guidance of $22.00-$22.30.

Investor Focus: The Strategic Decision Point

The biggest influence investors are currently exerting is on the company's structure. Chemed Corporation's two main segments, VITAS Healthcare (hospice) and Roto-Rooter (plumbing), are distinct businesses. In Q1 2025, VITAS drove strong growth with revenue increasing 15.1% year-over-year to $407.4 million, while Roto-Rooter saw slower growth of 3.1% in gross branch revenue.

This performance disparity keeps the idea of a tax-free spin-off (or divestiture) of Roto-Rooter on the table. Investors are essentially pushing management to consider whether separating the high-growth, but regulatory-sensitive, hospice business from the stable, essential-service plumbing business would 'unlock value' (to use a phrase I usually avoid). The question is whether the after-tax proceeds could be reinvested at higher risk-adjusted returns, and whether a spin-off would create long-term stockholder value-a classic activist-investor focus, even if no formal activist is currently named.

Market Impact and Investor Sentiment

The investor profile for Chemed Corporation (CHE) is dominated by institutional conviction, but recent market volatility shows a clear divergence in sentiment. While the consensus among analysts remains a 'Buy,' the market has reacted sharply to operational headwinds, forcing investors to weigh the long-term stability of its dual-segment model against near-term execution risks.

Currently, the analyst community has a 'Moderate Buy' consensus rating for Chemed Corporation, based on the opinions of four to six analysts as of November 2025. This positive outlook is anchored by an average price target of $574.25, which implies a potential upside of over 31% from the recent trading price of around $435.56. That's a strong signal, but you need to look closer at what's driving the mixed messages.

Here's the quick math: The firm's two main businesses, VITAS Healthcare (hospice) and Roto-Rooter (plumbing/drainage), offer a unique recession-resistant combination, but the fiscal year 2025 guidance adjustment was a clear wake-up call.

Recent Market Reactions and Ownership Shifts

The stock experienced a significant drop earlier this year, falling 14.7% in a single afternoon in June 2025. This sharp reaction followed the company's update to its full-year 2025 guidance, which cited a projected Medicare Cap revenue limitation for the VITAS segment in Florida, estimated to be a shortfall of $18 million to $25 million. That's a material reversal from previous expectations of a cushion, and the market defintely took notice.

Despite this, the stock has shown resilience, swinging upward by 12.9% over the 90 days leading up to late October 2025, suggesting a belief that the issues are manageable. Still, you should note that insider activity has been on the sell side, with CEO Kevin J. McNamara selling 3,000 shares for approximately $1.38 million in a September 2025 transaction, which can sometimes signal caution to the broader market.

• Stock fell 14.7% on June 2025 guidance cut.
• Rebounded 12.9% in the 90 days before late October 2025.
• Short interest recently increased by 8.63%, showing bearish bets.

Analyst Perspectives and Key Investor Holdings

The institutional investor landscape for Chemed Corporation is highly concentrated, with institutional investors owning approximately 95.85% of the stock. This high level of institutional ownership often points to a stable, long-term investment profile, as these large funds are typically less prone to panic selling than retail investors. The top holders include the biggest names in asset management, which lends significant credibility to the company's long-term thesis.

The analyst community's positive rating stems from the expectation of continued growth, particularly in the VITAS segment, which saw a 4.9% year-over-year increase in admissions despite the Florida Medicare cap issue. For the full fiscal year 2025, Chemed Corporation has guided for an Earnings Per Share (EPS) of $22.00-$22.30, slightly above the sell-side analyst consensus of $21.43. This small difference in expectations is where the risk-reward calculation lies for many investors.

The core investment thesis remains: essential services and aging demographics. You can find more detail on the company's long-term strategy here: Mission Statement, Vision, & Core Values of Chemed Corporation (CHE).

The table below summarizes the positions of the two largest institutional shareholders based on their most recent filings, underscoring the scale of conviction from the world's largest asset managers:

What this estimate hides is the potential for further regulatory pressure on the VITAS segment, which could force another guidance adjustment. The Roto-Rooter segment, while stable, reported a significant 520 basis point year-over-year decline in adjusted EBITDA margin to 21.8% due to rising costs for labor, insurance, and marketing. So, while the big players are holding, you need to watch those margin pressures closely. Finance: monitor Q4 2025 Roto-Rooter margin trends by the next earnings call.