Madison Asset Management LLC Acquires Shares of 72,599 Encompass Health Corporation $EHC

Madison Asset Management LLC bought a new position in shares of Encompass Health Corporation (NYSE:EHC) during the second quarter, Holdings Channel.com reports. The firm bought 72,599 shares of the company’s stock, valued at approximately $7,338,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. one8zero8 LLC bought a new stake in shares of Encompass Health during the second quarter valued at approximately $397,000. NewEdge Wealth LLC purchased a new position in Encompass Health during the second quarter valued at $517,000. Great Lakes Advisors LLC bought a new stake in shares of Encompass Health during the 2nd quarter valued at $305,000. Diversify Advisory Services LLC purchased a new stake in shares of Encompass Health in the 2nd quarter worth about $629,000. Finally, Foster & Motley Inc. purchased a new stake in shares of Encompass Health in the 2nd quarter worth about $1,089,000. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Insider Buying and Selling

In related news, EVP John Patrick Darby sold 8,906 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at $9,451,413.95. This trade represents a 10.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the completion of the transaction, the chief executive officer owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.80% of the company’s stock.

Encompass Health Price Performance

EHC opened at $121.95 on Thursday. The firm has a market cap of $12.03 billion, a PE ratio of 19.86, a P/E/G ratio of 2.48 and a beta of 0.72. The stock has a 50-day moving average price of $110.26 and a 200-day moving average price of $106.10. Encompass Health Corporation has a 1 year low of $92.77 and a 1 year high of $127.99. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. Encompass Health’s revenue for the quarter was up 9.6% on a year-over-year basis. During the same period in the prior year, the firm posted $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Sell-side analysts predict that Encompass Health Corporation will post 6.08 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

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

Analyst Ratings Changes

A number of brokerages recently issued reports on EHC. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research report on Sunday. Weiss Ratings upgraded shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 12th. UBS Group raised their target price on shares of Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Leerink Partners set a $152.00 target price on shares of Encompass Health in a report on Friday, May 22nd. Finally, TD Cowen upped their price target on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Encompass Health has a consensus rating of “Buy” and a consensus price target of $148.71.

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.