VELA Investment Management LLC Purchases 17,105 Shares of Encompass Health Corporation $EHC

VELA Investment Management LLC boosted its position in Encompass Health Corporation (NYSE:EHC) by 53.6% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 48,991 shares of the company’s stock after purchasing an additional 17,105 shares during the period. Encompass Health accounts for about 1.1% of VELA Investment Management LLC’s portfolio, making the stock its 24th biggest holding. VELA Investment Management LLC’s holdings in Encompass Health were worth $4,952,000 at the end of the most recent reporting period.

Several other large investors have also recently bought and sold shares of the company. California State Teachers Retirement System boosted its position in Encompass Health by 9,758.8% during the 2nd quarter. California State Teachers Retirement System now owns 11,605,197 shares of the company’s stock worth $1,173,053,000 after buying an additional 11,487,483 shares during the period. BlackRock Inc. acquired a new position in Encompass Health in the 2nd quarter valued at approximately $1,059,762,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of Encompass Health by 3,059,159.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock valued at $402,640,000 after acquiring an additional 3,793,358 shares during the last quarter. Norges Bank bought a new position in shares of Encompass Health during the fourth quarter valued at $133,221,000. Finally, William Blair Investment Management LLC acquired a new position in shares of Encompass Health during the second quarter worth $116,352,000. 97.25% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Weiss Ratings raised shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 12th. UBS Group lifted their target price on Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Wall Street Zen lowered Encompass Health from a “buy” rating to a “hold” rating in a research report on Saturday. Leerink Partners set a $152.00 price target on Encompass Health in a research note on Friday, May 22nd. Finally, Truist Financial raised their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $148.71.

Insider Activity

In related news, EVP John Darby sold 8,906 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.95, 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 transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction that occurred on Monday, August 10th. The stock was 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 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 SEC filing for this sale provides additional information. Over the last three months, insiders sold 186,912 shares of company stock valued at $23,434,845. Corporate insiders own 1.80% of the company’s stock.

Encompass Health Trading Up 0.0%

NYSE:EHC opened at $121.80 on Monday. The firm’s fifty day moving average is $115.33 and its 200-day moving average is $107.57. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. Encompass Health Corporation has a 52 week low of $92.77 and a 52 week high of $127.99. The firm has a market cap of $12.02 billion, a P/E ratio of 19.84, a P/E/G ratio of 2.47 and a beta of 0.75.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, topping 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 net margin of 10.01% and a return on equity of 18.08%. Encompass Health’s revenue for the quarter was up 9.6% compared to the same quarter last year. During the same period in the prior year, the company posted $1.40 earnings per share. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities analysts expect that Encompass Health Corporation will post 6.08 earnings per share for the current year.

Encompass Health Increases Dividend

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

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.