Schwartz Offloads 28,000 Chemed (CHE) Shares Valued at $13 Million
Key Points
Schwartz Investment Counsel sold 28,771 shares of Chemed Corporation; estimated transaction value of approximately $13.03 million based on average third-quarter 2025 pricing
Trade represented 0.4% of Schwartz’s reportable U.S. equity assets under management as of Q3 2025
Post-trade stake: 111,033 shares valued at $49.71 million as of Q3 2025
Chemed now accounts for 1.67% of AUM as of September 30, 2025, which places it outside the fund’s top five holdings
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What happened
Schwartz Investment Counsel disclosed that it reduced its position in Chemed Corporation (NYSE:CHE) by 28,771 shares during the quarter, according to a 13F form filed with the Securities and Exchange Commission on October 29, 2025 (SEC filing). The estimated value of the shares sold was $13.03 million, calculated using the average closing price for the quarter ended September 30, 2025. Following the trade, the fund held 111,033 Chemed shares.
What else to know
The fund’s Chemed stake was reduced to 1.67% of reportable assets as of Q3 2025, down from 2.24% in the previous quarter.
Top holdings after the filing:
NYSE: TPL: $143.24 million (4.81% of AUM) as of September 30, 2025
NYSE: MA: $129.45 million (4.34% of AUM) as of September 30, 2025
NYSE: HEI.A: $115.79 million (3.9% of AUM) as of September 30, 2025
NYSE: APG: $106.36 million (3.57% of AUM) as of September 30, 2025
NASDAQ: NVDA: $106.35 million (3.57% of AUM) as of Q3 2025
As of October 28, 2025, Chemed shares were priced at $438.94, down 27.91% over the past year as of October 28, 2025 and underperforming the S&P 500 by 45.55 percentage points over the past year
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.53 billion |
| Net Income (TTM) | $278.81 million |
| Dividend Yield | 0.44% |
| Price (as of market close 2025-10-28) | $438.94 |
Company Snapshot
Chemed Corporation operates two primary segments: VITAS, which provides hospice and palliative care services, and Roto-Rooter, offering plumbing, drain cleaning, and water restoration solutions.
The company generates revenue through direct service delivery to patients and customers via company-owned branches, independent contractors, and franchisees.
Its primary customers include patients requiring end-of-life care and residential or commercial clients needing plumbing and related services across the United States.
Chemed Corporation is a diversified service provider with a leading presence in hospice care and plumbing services. The company's dual-segment strategy leverages established brands and nationwide networks to deliver essential healthcare and maintenance solutions.
Foolish take
Chemed was Schwartz's 11th-largest holding at the end of June. By the end of September, it had been demoted to 17th place out of 133 total positions. The sale of Chemed stock was the portfolio's fifth-largest reduction during the third quarter.
The hospice and plumbing industries are about as reliable as businesses get, but Chemed's stock price hasn't been moving up and toward the left as regularly as it used to. The stock is down by 33.7% from a peak it reached early last year.
Chemed reported disappointing third-quarter results across both its operating segments. It appears that the cost of providing hospice care is rising faster than the company has been able to raise its prices. Despite average third-quarter revenue per day rising by 2.98% year over year, adjusted EBITDA for the hospice segment declined by 3.8% to $70.4 million.
Chemed's Roto-Rooter segment grew third-quarter revenue by 1.1% year over year. Again, contracting margins caused adjusted EBITDA to decline by a frightening 12.4% year over year.
Glossary
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Form 13F: A quarterly report filed by institutional investment managers to disclose their equity holdings to the SEC.
Reportable Assets: Assets that must be disclosed in regulatory filings, typically including U.S. publicly traded securities.
Stake: The ownership interest or number of shares held in a particular company by an investor or fund.
Top Holdings: The largest investments in a fund’s portfolio, usually ranked by market value.
Dividend Yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Franchisees: Independent operators licensed to use a company’s brand and business model in exchange for fees or royalties.
Hospice Care: Specialized medical care focused on providing comfort and support to terminally ill patients.
Palliative Care: Medical care aimed at relieving symptoms and improving quality of life for patients with serious illnesses.
TTM: The 12-month period ending with the most recent quarterly report.
Underperforming the S&P 500: Achieving a lower investment return than the S&P 500 index over a specified period.
Independent Contractors: Individuals or businesses providing services to a company but not classified as employees.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Nvidia. The Motley Fool recommends Heico. The Motley Fool has a disclosure policy.
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