Heartland Advisors Inc. Makes New Investment in Encompass Health Corporation $EHC

Heartland Advisors Inc. bought a new stake in Encompass Health Corporation (NYSE:EHC) during the 2nd quarter, Holdings Channel.com reports. The institutional investor bought 4,198 shares of the company’s stock, valued at approximately $424,000.

Several other institutional investors have also recently added to or reduced their stakes in the company. WPG Advisers LLC grew its stake in Encompass Health by 73.3% during the fourth quarter. WPG Advisers LLC now owns 324 shares of the company’s stock worth $34,000 after buying an additional 137 shares during the last quarter. Persistent Asset Partners Ltd bought a new position in shares of Encompass Health in the second quarter valued at approximately $36,000. Keating Financial Advisory Services Inc. acquired a new position in shares of Encompass Health in the 2nd quarter worth approximately $39,000. Assetmark Inc. boosted its holdings in shares of Encompass Health by 89.6% in the 1st quarter. Assetmark Inc. now owns 455 shares of the company’s stock worth $44,000 after acquiring an additional 215 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its position in Encompass Health by 36,200.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock worth $46,000 after acquiring an additional 362 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

Encompass Health Stock Down 0.6%

NYSE:EHC opened at $120.24 on Friday. The company has a market cap of $11.86 billion, a price-to-earnings ratio of 19.58, a P/E/G ratio of 2.44 and a beta of 0.72. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. The stock’s fifty day moving average price is $111.01 and its two-hundred day moving average price is $106.38. Encompass Health Corporation has a 52-week low of $92.77 and a 52-week high of $127.99.

Encompass Health (NYSE:EHC) last released its earnings results 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 during the quarter, compared to analysts’ expectations of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The business’s revenue for the quarter was up 9.6% on a year-over-year basis. During the same period last year, the firm earned $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, analysts anticipate that Encompass Health Corporation will post 6.09 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 given a $0.21 dividend. 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 yield of 0.7%. Encompass Health’s dividend payout ratio is 12.38%.

Insider Activity

In other news, CEO Mark J. Tarr sold 173,148 shares of the firm’s stock in a transaction dated 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 owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP John Patrick Darby sold 8,906 shares of Encompass Health stock in a transaction that occurred 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 sale, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.80% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on EHC. Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. Truist Financial raised their target price on Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 12th. UBS Group upped their price target on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Barclays raised their price objective on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $148.71.

About Encompass Health

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.