AlphaCore Capital LLC Invests $4.88 Million in Encompass Health Corporation $EHC

Key Points

• AlphaCore Capital LLC opened a new position in Encompass Health, buying 45,991 shares valued at about $4.88 million in the fourth quarter.
• Analysts remain constructive on EHC: Zacks raised its EPS estimates for FY2027 and FY2028, and the stock still carries an overall “Buy” consensus with an average target price of $144.17.
• Encompass Health recently beat quarterly expectations with EPS of $1.60 on revenue of $1.59 billion, and it also announced a quarterly dividend of $0.19 per share payable July 15.

AlphaCore Capital LLC purchased a new position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 45,991 shares of the company's stock, valued at approximately $4,881,000.

Several other hedge funds have also recently bought and sold shares of EHC. First Horizon Corp acquired a new position in Encompass Health during the 3rd quarter worth about $34,000. WPG Advisers LLC raised its position in Encompass Health by 73.3% in the 4th quarter. WPG Advisers LLC now owns 324 shares of the company's stock valued at $34,000 after purchasing an additional 137 shares in the last quarter. Westside Investment Management Inc. raised its position in Encompass Health by 56.7% in the 3rd quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock valued at $35,000 after purchasing an additional 101 shares in the last quarter. Flagship Harbor Advisors LLC acquired a new stake in Encompass Health in the 4th quarter valued at about $37,000. Finally, Assetmark Inc. raised its position in Encompass Health by 88.1% in the 3rd quarter. Assetmark Inc. now owns 299 shares of the company's stock valued at $38,000 after purchasing an additional 140 shares in the last quarter. Institutional investors and hedge funds own 97.25% of the company's stock.

Key Stories Impacting Encompass Health

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS estimate to $6.35 from $6.32, suggesting stronger profit growth over the next couple of years.
• Positive Sentiment: The firm also increased its FY2028 EPS forecast to $7.16 from $7.13 and lifted Q1 2028 EPS to $1.80 from $1.73, reinforcing a favorable longer-term earnings trend.
• Positive Sentiment: Despite the revisions, the latest consensus still points to solid earnings for Encompass Health, with analysts expecting about $5.97 per share for the current full year and a “Buy” consensus recommendation from analysts. Article: Encompass Health Corporation NYSE: EHC Receives Consensus Recommendation of "Buy" from Analysts
• Neutral Sentiment: Several shorter-term estimates were only slightly adjusted, including FY2026 EPS cut to $5.96 from $6.03, with Q2 2026 lowered to $1.46 from $1.49 and Q3 2026 lowered to $1.36 from $1.40.
• Neutral Sentiment: Other quarterly forecasts were modestly lowered as well, including Q2 2027 to $1.60 from $1.62, Q3 2027 to $1.48 from $1.49, and Q4 2027 to $1.64 from $1.65.

Insider Buying and Selling at Encompass Health

In related news, EVP Patrick William Tuer sold 682 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $104.56, for a total value of $71,309.92. Following the completion of the transaction, the executive vice president directly owned 24,755 shares in the company, valued at approximately $2,588,382.80. This represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Treasurer Edmund Fay sold 11,937 shares of the company's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $107.00, for a total value of $1,277,259.00. Following the completion of the transaction, the treasurer owned 89,325 shares of the company's stock, valued at $9,557,775. The trade was a 11.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.80% of the company's stock.

Encompass Health Stock Down 0.6%

Encompass Health stock opened at $106.64 on Friday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.17 and a quick ratio of 1.17. Encompass Health Corporation has a 1-year low of $92.77 and a 1-year high of $127.99. The company has a market cap of $10.58 billion, a PE ratio of 17.80, a price-to-earnings-growth ratio of 2.32 and a beta of 0.72. The stock's 50 day moving average price is $102.94 and its 200 day moving average price is $106.40.

Encompass Health (NYSE:EHC - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.09. The firm had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.57 billion. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.Encompass Health's revenue was up 9.0% on a year-over-year basis. During the same period in the previous year, the firm posted $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, sell-side analysts predict that Encompass Health Corporation will post 5.96 EPS for the current fiscal year.

Encompass Health Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be issued a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, July 1st. Encompass Health's payout ratio is 12.69%.

Analysts Set New Price Targets

A number of research firms have issued reports on EHC. Barclays reduced their price target on Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 5th. Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, six 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 presently has an average rating of "Buy" and a consensus target price of $144.17.

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.

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