Chemed's Trading Volume Surges to $338 Million Ranking 230th Despite 12.99% Stock Price Drop

On June 30, 2025, Chemed's trading volume reached $338 million, marking a significant 78.97% increase from the previous day. This surge placed Chemed at the 230th position in terms of trading volume for the day. However, despite the high trading volume, Chemed's stock price fell by 12.99%.

Chemed's recent decline in stock price can be attributed to several factors. The company's Vitas unit has announced that it expects a Medicare cap revenue limitation for fiscal 2025, which is projected to result in a shortfall of $18 million to $25 million. This news has led to a significant drop in investor confidence, as the company's earnings projections for the year have been revised downward.

Additionally, Chemed has reported weaker-than-expected Medicare admissions in Florida, further contributing to the stock's decline. The company's Vitas division is facing revenue constraints connected to the Medicare cap, which has led to a projected shortfall of $18 million to $25 million for 2025. This follows lower-than-expected admissions and revenue in the state, which has historically been a key market for the company.

Oppenheimer analyst Michael Wiederhorn has noted that Chemed's Vitas unit expects to book an $18 million to $25 million Medicare cap liability in Florida for the 2025 fiscal year. This liability is due to the company's inability to meet the Medicare cap requirements, which has led to a significant decline in the company's stock price.

Chemed's stock has reached a 52-week low, touching a price of $500.00. This milestone comes amidst broader market fluctuations and the company's ongoing challenges with Medicare cap limitations and weaker-than-expected admissions in key markets. Despite these challenges, Chemed is set to report its second-quarter 2025 earnings on July 29, 2025, which may provide further insight into the company's financial performance and outlook for the remainder of the year.