808,034 Shares in Encompass Health Corporation $EHC Purchased by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon purchased 808,034 Encompass Health shares worth approximately $81.7 million, joining other institutional investors; institutions collectively own 97.25% of the company.
• Encompass Health exceeded quarterly expectations, reporting $1.55 in EPS and $1.60 billion in revenue, with revenue up 9.6% year over year. The company also increased its quarterly dividend from $0.19 to $0.21 per share.
• Analysts maintain a positive outlook, with a consensus “Buy” rating and an average price target of $148.71 versus the stock’s reported price of $120.18. Meanwhile, the CEO and an executive vice president sold shares, reducing their holdings.

Bank of New York Mellon Corp purchased a new stake in shares of Encompass Health Corporation (NYSE:EHC - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 808,034 shares of the company's stock, valued at approximately $81,676,000. Bank of New York Mellon Corp owned about 0.81% of Encompass Health at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of the business. State of Wyoming bought a new stake in shares of Encompass Health during the 2nd quarter valued at $70,000. GSA Capital Partners LLP bought a new position in Encompass Health in the 2nd quarter worth about $933,000. Oppenheimer Asset Management Inc. bought a new position in Encompass Health in the 2nd quarter worth about $2,620,000. Trust Point Inc. purchased a new stake in shares of Encompass Health in the second quarter worth about $211,000. Finally, Reinhart Partners LLC. boosted its position in shares of Encompass Health by 1.9% in the second quarter. Reinhart Partners LLC. now owns 435,362 shares of the company's stock valued at $44,008,000 after acquiring an additional 8,162 shares during the period. Hedge funds and other institutional investors own 97.25% of the company's stock.

Insider Activity at Encompass Health

In related news, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction on 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 directly owned 267,814 shares of the company's stock, valued at $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP John Patrick Darby sold 8,906 shares of the company's stock in a transaction 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 sale, the executive vice president owned 75,041 shares of the company's stock, valued at $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is owned by company insiders.

Encompass Health Price Performance

Shares of Encompass Health stock opened at $120.18 on Wednesday. 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 company has a fifty day moving average of $111.85 and a 200-day moving average of $106.83. The stock has a market capitalization of $11.86 billion, a price-to-earnings ratio of 19.57, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72.

Encompass Health (NYSE:EHC - Get Free Report) last issued its earnings results 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 company had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.57 billion. During the same quarter last year, the company earned $1.40 EPS. The firm's revenue 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. Equities research analysts expect that Encompass Health Corporation will post 6.09 EPS 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. The ex-dividend date is Thursday, October 1st. This represents a $0.84 annualized dividend and a yield of 0.7%. This is a boost from Encompass Health's previous quarterly dividend of $0.19. Encompass Health's dividend payout ratio (DPR) is currently 12.38%.

Analysts Set New Price Targets

Several analysts have issued reports on EHC shares. Leerink Partners set a $152.00 target price on shares of Encompass Health in a research note on Friday, May 22nd. Weiss Ratings upgraded shares of Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, August 12th. Barclays upped their price target on shares of Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. TD Cowen upped their price objective on shares of Encompass Health from $125.00 to $140.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Finally, Truist Financial raised their target price on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research note on Friday, August 7th. 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 company. Based on data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $148.71.

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.

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