Capital Research Global Investors Cuts Stake in Encompass Health Corporation $EHC

Capital Research Global Investors decreased its holdings in Encompass Health Corporation (NYSE:EHC) by 0.9% in the fourth quarter, Holdings Channel.com reports. The firm owned 597,302 shares of the company’s stock after selling 5,219 shares during the period. Capital Research Global Investors’ holdings in Encompass Health were worth $63,398,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in EHC. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Encompass Health by 3,059,159.7% in 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 purchasing an additional 3,793,358 shares in the last quarter. Norges Bank purchased a new stake in shares of Encompass Health in the 4th quarter valued at $133,221,000. Millennium Management LLC boosted its stake in shares of Encompass Health by 140.0% in the 3rd 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. 8 Knots Management LLC bought a new stake in Encompass Health during the 2nd quarter valued at $78,644,000. Finally, Alliancebernstein L.P. raised its holdings in Encompass Health by 23.4% during the 3rd quarter. Alliancebernstein L.P. now owns 2,515,878 shares of the company’s stock valued at $319,567,000 after buying an additional 476,564 shares during the last quarter. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Encompass Health Trading Up 3.2%

NYSE:EHC opened at $104.38 on Wednesday. The company has a fifty day moving average of $103.99 and a 200 day moving average of $104.82. Encompass Health Corporation has a 52 week low of $92.77 and a 52 week high of $127.99. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.76. The firm has a market capitalization of $10.35 billion, a P/E ratio of 17.43, a P/E/G ratio of 2.20 and a beta of 0.72.

Encompass Health (NYSE:EHC) last issued its quarterly earnings data on Thursday, April 30th. The company reported $1.60 EPS for the quarter, topping the consensus estimate of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The business had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the business earned $1.37 EPS. The company’s revenue for the quarter was up 9.0% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, research analysts predict that Encompass Health Corporation will post 5.97 earnings per share for the current year.

Encompass Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be issued a $0.19 dividend. The ex-dividend date is Wednesday, July 1st. This represents a $0.76 annualized dividend and a yield of 0.7%. Encompass Health’s dividend payout ratio is 12.69%.

Insider Buying and Selling

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of the company’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $104.56, for a total value of $71,309.92. Following the completion of the transaction, the executive vice president directly owned 24,755 shares in the company, valued at approximately $2,588,382.80. This represents a 2.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.80% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. TD Cowen assumed coverage on shares of Encompass Health in a report on Thursday, May 28th. They set a “buy” rating and a $125.00 price target for the company. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Barclays lowered their price target on shares of Encompass Health from $153.00 to $140.00 and set an “overweight” rating for the company in a report on Tuesday, May 5th. Finally, Leerink Partners set a $152.00 price target on shares of Encompass Health in a report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, Encompass Health currently has a consensus rating of “Buy” and an average target price of $143.86.

Encompass Health Company 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.