William Blair Investment Management LLC Lowers Stake in Encompass Health Corporation $EHC

William Blair Investment Management LLC lessened its stake in Encompass Health Corporation (NYSE:EHC) by 41.9% in the 3rd quarter, according to its most recent filing with the SEC. The fund owned 803,283 shares of the company’s stock after selling 580,485 shares during the period. William Blair Investment Management LLC’s holdings in Encompass Health were worth $102,033,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Citizens National Bank Trust Department purchased a new stake in shares of Encompass Health in the 3rd quarter valued at $26,000. First Horizon Corp acquired a new position in Encompass Health in the 3rd quarter valued at about $34,000. Westside Investment Management Inc. grew its position in Encompass Health by 56.7% in the 3rd quarter. Westside Investment Management Inc. now owns 279 shares of the company’s stock valued at $35,000 after acquiring an additional 101 shares in the last quarter. Assetmark Inc. lifted its position in shares of Encompass Health by 88.1% during the third quarter. Assetmark Inc. now owns 299 shares of the company’s stock worth $38,000 after purchasing an additional 140 shares in the last quarter. Finally, Root Financial Partners LLC purchased a new position in shares of Encompass Health in the third quarter valued at approximately $39,000. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Trading Up 0.5%

EHC opened at $107.70 on Friday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.14 and a current ratio of 1.08. Encompass Health Corporation has a one year low of $92.53 and a one year high of $127.99. The company has a market cap of $10.84 billion, a P/E ratio of 19.44, a PEG ratio of 2.07 and a beta of 0.73. The business’s 50-day simple moving average is $103.86 and its 200-day simple moving average is $114.09.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Thursday, February 5th. The company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.29 by $0.17. The company had revenue of $3.09 billion for the quarter, compared to analyst estimates of $1.54 billion. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The firm’s revenue was up 9.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.17 earnings per share. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. As a group, equities research analysts expect that Encompass Health Corporation will post 4.8 EPS for the current fiscal year.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st will be given a $0.19 dividend. The ex-dividend date of this dividend is Wednesday, April 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.7%. Encompass Health’s payout ratio is 13.72%.

Insider Transactions at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 150,000 shares of the firm’s stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following the transaction, the chief executive officer owned 377,070 shares of the company’s stock, valued at approximately $42,096,094.80. This trade represents a 28.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 2.00% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities analysts have commented on EHC shares. Barclays raised their price target on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Zacks Research downgraded Encompass Health from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Finally, Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Two equities research analysts have 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, Encompass Health currently has a consensus rating of “Buy” and an average price target of $143.29.

Encompass Health Profile

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.