Freestone Grove Partners LP Invests $38.68 Million in Encompass Health Corporation $EHC

Freestone Grove Partners LP bought a new stake in Encompass Health Corporation (NYSE:EHC) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 382,640 shares of the company’s stock, valued at approximately $38,677,000.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. raised 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 worth $402,640,000 after purchasing an additional 3,793,358 shares in the last quarter. AlphaCore Capital LLC bought a new position in shares of Encompass Health in the fourth quarter valued at $4,881,000. Ancora Advisors LLC bought a new position in shares of Encompass Health in the second quarter valued at $10,639,000. Systematic Financial Management LP increased its holdings in Encompass Health by 3.6% during the fourth quarter. Systematic Financial Management LP now owns 440,752 shares of the company’s stock worth $46,782,000 after buying an additional 15,462 shares during the last quarter. Finally, Trillium Asset Management LLC raised its position in Encompass Health by 5.7% during the fourth quarter. Trillium Asset Management LLC now owns 217,734 shares of the company’s stock worth $23,424,000 after acquiring an additional 11,793 shares in the last quarter. Institutional investors own 97.25% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have commented on EHC shares. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Truist Financial boosted their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Weiss Ratings raised shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 12th. TD Cowen raised their target price on shares of Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, August 10th. Finally, UBS Group lifted their price target on Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus price target of $148.71.

More Encompass Health News

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $6.03 from $5.96, FY2027 to $6.42 from $6.35, and FY2028 to $7.18 from $7.16. It also increased estimates for Q1 2027, Q2 2027, Q3 2027, and Q2 2028, signaling improving confidence in EHC’s medium- and long-term earnings trajectory.
• Positive Sentiment: Encompass Health’s facility expansion, including its North Carolina pipeline, could support 6%–8% multi-year discharge growth. That potential provides a fundamental catalyst for the stock by increasing future patient capacity and revenue. How EHC’s Capacity Expansion Fuels a Multi-Year Growth Runway
• Positive Sentiment: The company’s latest reported quarter also showed healthy operating momentum: adjusted earnings of $1.55 per share exceeded estimates, revenue reached $1.60 billion, and sales increased 9.6% year over year. Full-year 2026 guidance remains $6.02–$6.25 EPS.
• Neutral Sentiment: Zacks’ momentum analysis continues to characterize EHC as a long-term momentum candidate, although the assessment is based on quantitative style factors rather than a new company announcement. Why Encompass Health Is a Top Momentum Stock for the Long-Term
• Negative Sentiment: Zacks trimmed near-term estimates for Q3 2026 EPS to $1.35 from $1.36 and Q4 2026 EPS to $1.53 from $1.55. These modest cuts may limit immediate upside, though they were outweighed by the stronger longer-term revisions.

Encompass Health Stock Up 0.6%

EHC opened at $120.86 on Thursday. The stock’s fifty day simple moving average is $112.30 and its 200 day simple moving average is $106.98. Encompass Health Corporation has a 1-year low of $92.77 and a 1-year high of $127.99. The stock has a market cap of $11.92 billion, a PE ratio of 19.68, a price-to-earnings-growth ratio of 2.43 and a beta of 0.72. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76.

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

Encompass Health Increases Dividend

The business also recently announced 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. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s payout ratio is presently 12.38%.

Insider Activity

In other Encompass Health 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 directly owned 75,041 shares in the company, 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 SEC, which is available at this hyperlink. Also, CEO Mark J. Tarr sold 173,148 shares of the firm’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 sale, the chief executive officer owned 267,814 shares of the company’s stock, valued at $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.80% of the company’s stock.

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.