L2 Asset Management LLC Makes New Investment in Encompass Health Corporation $EHC

L2 Asset Management LLC bought a new stake in Encompass Health Corporation (NYSE:EHC) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 4,867 shares of the company’s stock, valued at approximately $492,000.

A number of other institutional investors have also recently made changes to their positions in EHC. Meiji Yasuda Asset Management Co Ltd. bought a new position in shares of Encompass Health during the 2nd quarter worth $235,000. Globeflex Capital L P bought a new stake in Encompass Health in the 2nd quarter valued at about $1,118,000. Bank of Nova Scotia purchased a new stake in Encompass Health during the second quarter valued at about $5,249,000. Elevation Point Wealth Partners LLC purchased a new stake in Encompass Health during the second quarter valued at about $343,000. Finally, Commerce Bank bought a new position in Encompass Health during the second quarter worth about $706,000. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Encompass Health Trading Down 0.6%

Shares of Encompass Health stock opened at $120.18 on Wednesday. The company’s 50-day moving average price is $111.85 and its 200-day moving average price is $106.83. 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 Corporation has a 12-month low of $92.77 and a 12-month high of $127.99. The company has a market cap of $11.86 billion, a price-to-earnings ratio of 19.57, a PEG ratio of 2.45 and a beta of 0.72.

Encompass Health (NYSE:EHC) last posted its earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share 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 business had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same quarter in the prior year, the firm posted $1.40 EPS. Encompass Health’s revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, equities analysts expect that Encompass Health Corporation will post 6.09 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 $0.21 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. Encompass Health’s payout ratio is currently 12.38%.

Analysts Set New Price Targets

EHC has been the subject of several recent research reports. UBS Group lifted their target price on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Leerink Partners set a $152.00 price objective on shares of Encompass Health in a report on Friday, May 22nd. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Barclays boosted their target price on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Finally, Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 12th. One equities research 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 stock. According to MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $148.71.

Insiders Place Their Bets

In other Encompass Health news, EVP John Patrick Darby sold 8,906 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the transaction, the executive vice president directly owned 75,041 shares in the company, valued at $9,451,413.95. This represents a 10.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 completion of the sale, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 1.80% of the company’s stock.

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.