Alberta Investment Management Corp Buys New Shares in Encompass Health Corporation (NYSE:EHC)

Key Points

• Alberta Investment Management Corp has acquired a new stake in Encompass Health Corporation, purchasing 35,108 shares valued at approximately $3,556,000.
• Recent analyst upgrades have positively impacted Encompass Health's stock, with several firms raising their price targets to $135.00.
• Encompass Health increased its quarterly dividend from $0.17 to $0.19, reflecting a growing return to shareholders, with an annualized yield of 0.7%.

Alberta Investment Management Corp bought a new stake in Encompass Health Corporation (NYSE:EHC - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 35,108 shares of the company's stock, valued at approximately $3,556,000.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of EHC. LPL Financial LLC boosted its holdings in Encompass Health by 8.8% in the fourth quarter. LPL Financial LLC now owns 35,558 shares of the company's stock valued at $3,284,000 after purchasing an additional 2,869 shares during the period. Pictet Asset Management Holding SA boosted its holdings in Encompass Health by 11.0% in the fourth quarter. Pictet Asset Management Holding SA now owns 14,569 shares of the company's stock valued at $1,345,000 after purchasing an additional 1,443 shares during the period. Summit Financial LLC purchased a new position in Encompass Health in the fourth quarter valued at $212,000. Geode Capital Management LLC boosted its holdings in Encompass Health by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 1,679,774 shares of the company's stock valued at $155,176,000 after purchasing an additional 6,164 shares during the period. Finally, Trexquant Investment LP purchased a new position in Encompass Health in the fourth quarter valued at $3,885,000. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on EHC. KeyCorp lifted their price target on Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a report on Tuesday, May 27th. Truist Financial reaffirmed a "buy" rating and set a $135.00 price target (up from $116.00) on shares of Encompass Health in a report on Monday, April 28th. Stephens raised Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price target for the company in a report on Thursday, June 5th. UBS Group lifted their price target on Encompass Health from $117.00 to $130.00 and gave the stock a "buy" rating in a report on Monday, April 28th. Finally, Wall Street Zen downgraded Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. Seven investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, Encompass Health currently has an average rating of "Buy" and an average price target of $131.50.

Insider Activity

In related news, CEO Mark J. Tarr sold 118,384 shares of the business's stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $121.53, for a total value of $14,387,207.52. Following the transaction, the chief executive officer owned 527,070 shares in the company, valued at $64,054,817.10. The trade was a 18.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Elissa Joy Charbonneau sold 4,279 shares of the business's stock in a transaction dated Tuesday, May 6th. The shares were sold at an average price of $116.61, for a total value of $498,974.19. Following the completion of the transaction, the insider owned 11,958 shares in the company, valued at $1,394,422.38. This trade represents a 26.35% decrease in their position. The disclosure for this sale can be found here. Insiders own 2.00% of the company's stock.

Encompass Health Stock Down 1.3%

Encompass Health stock opened at $108.67 on Friday. Encompass Health Corporation has a fifty-two week low of $82.74 and a fifty-two week high of $123.13. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market capitalization of $10.95 billion, a P/E ratio of 22.45, a PEG ratio of 2.20 and a beta of 0.86. The stock has a 50-day simple moving average of $116.88 and a 200-day simple moving average of $108.06.

Encompass Health Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be given a $0.19 dividend. This is a boost from Encompass Health's previous quarterly dividend of $0.17. The ex-dividend date is Wednesday, October 1st. This represents a $0.76 annualized dividend and a yield of 0.7%. Encompass Health's payout ratio is presently 14.05%.

Encompass Health Profile

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.

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