Ameriprise Financial Inc. Raises Holdings in Encompass Health Corporation $EHC

Key Points

• Ameriprise Financial Inc. has increased its stake in Encompass Health Corporation by 15.1%, now owning approximately $93.73 million worth of shares.
• Several analysts have issued positive ratings for EHC, with a consensus rating of "Buy" and an average price target currently set at $134.00.
• Encompass Health recently announced a dividend increase from $0.17 to $0.19 per share, with the next payout scheduled for October 15.

Ameriprise Financial Inc. increased its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 15.1% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 925,444 shares of the company's stock after purchasing an additional 121,415 shares during the period. Ameriprise Financial Inc. owned 0.92% of Encompass Health worth $93,729,000 as of its most recent SEC filing.

A number of other large investors also recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd lifted its holdings in Encompass Health by 19.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 720 shares of the company's stock worth $73,000 after purchasing an additional 115 shares in the last quarter. Arlington Trust Co LLC lifted its holdings in Encompass Health by 22.9% in the 1st quarter. Arlington Trust Co LLC now owns 671 shares of the company's stock worth $68,000 after purchasing an additional 125 shares in the last quarter. IFP Advisors Inc increased its stake in Encompass Health by 5.9% in the 1st quarter. IFP Advisors Inc now owns 2,814 shares of the company's stock worth $285,000 after acquiring an additional 158 shares during the last quarter. Merit Financial Group LLC increased its stake in Encompass Health by 4.1% in the 1st quarter. Merit Financial Group LLC now owns 4,220 shares of the company's stock worth $427,000 after acquiring an additional 166 shares during the last quarter. Finally, Sequoia Financial Advisors LLC increased its stake in Encompass Health by 6.7% in the 1st quarter. Sequoia Financial Advisors LLC now owns 2,727 shares of the company's stock worth $276,000 after acquiring an additional 172 shares during the last quarter. 97.25% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have issued reports on EHC. Wall Street Zen downgraded Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. KeyCorp lifted their price objective on Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Truist Financial lifted their price objective on Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th. Stephens raised Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price objective on the stock in a research note on Thursday, June 5th. Finally, UBS Group lifted their price objective on Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating and six have given a Buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Buy" and an average target price of $134.00.

Encompass Health Trading Down 1.4%

Shares of NYSE EHC traded down $1.74 during trading hours on Friday, hitting $121.71. 839,898 shares of the company traded hands, compared to its average volume of 862,588. The stock has a market capitalization of $12.26 billion, a price-to-earnings ratio of 23.82, a price-to-earnings-growth ratio of 2.13 and a beta of 0.86. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.76. The company's 50 day moving average price is $116.66 and its 200 day moving average price is $111.15. Encompass Health Corporation has a 12 month low of $87.85 and a 12 month high of $124.67.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results on Monday, August 4th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.20. The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. Encompass Health had a return on equity of 17.83% and a net margin of 9.22%.The company's revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.11 EPS. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. On average, equities research analysts anticipate that Encompass Health Corporation will post 4.8 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders 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 of this dividend is Wednesday, October 1st. This represents a $0.76 annualized dividend and a yield of 0.6%. Encompass Health's dividend payout ratio is currently 13.31%.

Insider Buying and Selling

In other Encompass Health news, EVP Patrick William Tuer sold 1,020 shares of the company's stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $123.59, for a total value of $126,061.80. Following the transaction, the executive vice president owned 18,846 shares of the company's stock, valued at $2,329,177.14. This represents a 5.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 2.00% of the stock is owned by company insiders.

Encompass Health Company 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.