Rice Hall James & Associates LLC Invests $4.05 Million in Encompass Health Corporation $EHC

Rice Hall James & Associates LLC acquired a new stake in shares of Encompass Health Corporation (NYSE:EHCFree Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 40,040 shares of the company’s stock, valued at approximately $4,047,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in EHC. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock valued at $402,640,000 after buying an additional 3,793,358 shares during the period. Norges Bank acquired a new position in shares of Encompass Health in the fourth quarter worth $133,221,000. Price T Rowe Associates Inc. MD raised its holdings in shares of Encompass Health by 24.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock worth $510,047,000 after acquiring an additional 948,202 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in Encompass Health during the second quarter valued at $81,676,000. Finally, Millennium Management LLC grew its stake in Encompass Health by 140.0% in the third quarter. Millennium Management LLC now owns 1,223,665 shares of the company’s stock valued at $155,430,000 after purchasing an additional 713,738 shares in the last quarter. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Insider Buying and Selling at Encompass Health

In related news, CEO Mark J. Tarr sold 173,148 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the transaction, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP John Patrick Darby sold 8,906 shares of Encompass Health stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. This trade represents a 10.61% decrease in their position. The SEC filing for this sale provides additional information. 1.80% of the stock is currently owned by corporate insiders.

Encompass Health Stock Down 1.3%

Shares of EHC stock opened at $121.94 on Tuesday. The stock’s 50 day simple moving average is $109.53 and its 200 day simple moving average is $105.72. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month high of $127.99. The company has a market capitalization of $12.03 billion, a price-to-earnings ratio of 19.86, a PEG ratio of 2.51 and a beta of 0.72.

Encompass Health (NYSE:EHCGet Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The firm had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same quarter in the prior year, the business earned $1.40 earnings per share. The company’s revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, research analysts predict that Encompass Health Corporation will post 6.08 EPS for the current year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a dividend of $0.21 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s payout ratio is currently 12.38%.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on EHC. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research report on Sunday. Leerink Partners set a $152.00 price target on Encompass Health in a report on Friday, May 22nd. Weiss Ratings upgraded Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 12th. TD Cowen raised their price objective on shares of Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a research report on Monday, August 10th. Finally, Barclays lifted their target price on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research note on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $148.71.

Get Our Latest Stock Report on EHC

About Encompass Health

(Free Report)

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.

Further Reading

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Institutional Ownership by Quarter for Encompass Health (NYSE:EHC)

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