Chemed CEO Buys Shares Amid $300M Buy‑back, Signaling Confidence in Undervalued Growth

Insider Activity Highlights Chemed’s Confidence in Growth

Chemed’s latest form 4 filing shows President and CEO Kevin J. McNamara buying 2,714 shares of capital stock on 13 Feb 2026. The transaction occurs just days after the company announced a $300 million share‑repurchase program and a $0.60 quarterly dividend. McNamara’s purchase, at a price of $469.56 per share—only slightly below the closing price of $473.22—signals that the executive believes the market is undervaluing the company’s long‑term prospects. The buy coincides with a sharp rise in social‑media buzz (90.47 % intensity) and a positive sentiment (+44), suggesting that investors are reacting favorably to the announcement of the buy‑back and dividend.

What This Means for Investors

The repurchase program is designed to return excess capital to shareholders and, by reducing the shares outstanding, should lift earnings per share. McNamara’s additional stake reinforces the narrative that management is aligned with shareholders: if he sees value in the stock, the market may follow. Over the past year, the stock has slipped 15 % year‑to‑date but is trading near a 52‑week low of $408.42, providing a potential entry point for value‑oriented investors. The company’s price‑earnings ratio of 24.96—moderately high for a health‑care services firm—may normalize if the buy‑back strengthens fundamentals. Analysts will watch whether the repurchase keeps pace with the dividend and whether the company can sustain the $0.60 payout in future quarters.

McNamara’s Insider Profile

Kevin McNamara’s trading history is consistent with a long‑term, confidence‑driven approach. In October 2025 he exercised a large block of stock options (58,672 shares) for $443.79 each, boosting his holdings to 266,159 shares. He has also sold a modest amount of capital stock in September and March 2025 (1,000–3,000 shares) at prices ranging from $461.28 to $615.33. Most recently, the 2,714‑share purchase at $469.56 indicates a willingness to add to his position when the company’s cash‑flow outlook improves. His pattern suggests he is more inclined to buy than sell, aligning his interests with long‑term value creation rather than short‑term speculation.

Performance Stock Units and Tax‑Related Moves

In addition to capital stock transactions, McNamara’s PSUs have vested and settled in February 2026. The PSUs tied to the 2023–2025 performance period yielded 123 % of target, reflecting strong earnings and shareholder‑return metrics. He also sold 1,192 shares to satisfy tax obligations, a routine but notable component of insider activity that can signal liquidity management. The company’s recent performance‑based awards reinforce the board’s confidence in achieving financial targets, a factor that may boost investor sentiment further.

Bottom Line for Market Participants

Chemed’s insider buying, combined with a sizable share‑repurchase program and dividend payout, paints a picture of a company comfortable with its cash‑flow position and eager to reward shareholders. For investors, the key questions remain: Will the repurchase program sustain and the dividend remain a reliable income stream? How will the company’s health‑care services division perform in a competitive market? McNamara’s continued buying, especially following a period of option exercise, suggests he believes the company’s valuation has not yet reached its full potential. These dynamics make Chemed an intriguing candidate for investors seeking exposure to a diversified health‑care holding company with a clear commitment to shareholder returns.