Ancora Advisors LLC Buys New Stake in Encompass Health Corporation $EHC

Key Points

• Ancora Advisors acquired 105,258 shares of Encompass Health worth approximately $10.6 million, giving it a 0.11% stake. Institutional investors collectively own 97.25% of the company.
• Encompass Health exceeded quarterly expectations, reporting EPS of $1.55 versus the $1.48 consensus and revenue of $1.60 billion, up 9.6% year over year.
• The company raised its quarterly dividend from $0.19 to $0.21 per share, while analysts maintained a consensus “Buy” rating with an average price target of $148.71.

Ancora Advisors LLC purchased a new stake in Encompass Health Corporation (NYSE:EHC - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund purchased 105,258 shares of the company's stock, valued at approximately $10,639,000. Ancora Advisors LLC owned about 0.11% of Encompass Health as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Persistent Asset Partners Ltd purchased a new position in shares of Encompass Health during the second quarter valued at about $36,000. Keating Financial Advisory Services Inc. bought a new position in Encompass Health during the second quarter valued at approximately $39,000. Assetmark Inc. boosted its stake in Encompass Health by 89.6% during the first quarter. Assetmark Inc. now owns 455 shares of the company's stock valued at $44,000 after buying an additional 215 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its stake in Encompass Health by 36,200.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock worth $46,000 after acquiring an additional 362 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd purchased a new stake in shares of Encompass Health during the 4th quarter worth approximately $55,000. Institutional investors own 97.25% of the company's stock.

Encompass Health Stock Performance

Encompass Health stock opened at $120.18 on Wednesday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a market capitalization of $11.86 billion, a P/E ratio of 19.57, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. Encompass Health Corporation has a 1-year low of $92.77 and a 1-year high of $127.99. The company's 50-day moving average is $111.85 and its 200 day moving average is $106.83.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same quarter in the previous year, the business earned $1.40 earnings per share. The company's revenue for the quarter 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. Research analysts forecast that Encompass Health Corporation will post 6.09 EPS for the current year.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be paid a $0.21 dividend. The ex-dividend date is Thursday, October 1st. This is a positive change from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. Encompass Health's payout ratio is 12.38%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on EHC shares. UBS Group raised their target price on shares of Encompass Health from $150.00 to $155.00 and gave the company a "buy" rating in a report on Friday, August 7th. 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. Barclays boosted their target price 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. Truist Financial upped their target price on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Finally, TD Cowen increased their price target on shares of Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $148.71.

Insider Buying and Selling at Encompass Health

In other news, EVP John Patrick Darby sold 8,906 shares of Encompass Health stock in a transaction 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 directly owned 75,041 shares in the company, valued at approximately $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 Securities & Exchange Commission, which can be accessed through this link. Also, CEO Mark J. Tarr sold 173,148 shares of the company's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the completion of the transaction, the chief executive officer owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is currently owned by company insiders.

Encompass Health 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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