Arrowstreet Capital Limited Partnership Has $123.53 Million Holdings in Encompass Health Corporation $EHC

Key Points

• Arrowstreet Capital increased its Encompass Health stake by 9.0% in the fourth quarter, ending with 1,163,834 shares valued at about $123.5 million.
• Encompass Health reported better-than-expected Q1 results, with EPS of $1.60 versus $1.51 expected and revenue of $1.59 billion, up 9% year over year. The company also issued FY 2026 EPS guidance of $5.89 to $6.11.
• Analysts remain mostly positive on EHC, with a consensus Buy rating and average price target of $143.86, while the company also announced a quarterly $0.19 dividend payable July 15.

Arrowstreet Capital Limited Partnership grew its stake in Encompass Health Corporation (NYSE:EHC - Free Report) by 9.0% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,163,834 shares of the company's stock after purchasing an additional 96,445 shares during the period. Arrowstreet Capital Limited Partnership owned about 1.16% of Encompass Health worth $123,529,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Encompass Health by 3,059,159.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock valued at $402,640,000 after buying an additional 3,793,358 shares during the period. Norges Bank acquired a new position in Encompass Health in the 4th quarter valued at approximately $133,221,000. Millennium Management LLC lifted its position in shares of Encompass Health by 140.0% in the 3rd quarter. Millennium Management LLC now owns 1,223,665 shares of the company's stock worth $155,430,000 after acquiring an additional 713,738 shares during the period. 8 Knots Management LLC acquired a new stake in shares of Encompass Health during the 2nd quarter worth approximately $78,644,000. Finally, Alliancebernstein L.P. increased its position in shares of Encompass Health by 23.4% during the third quarter. Alliancebernstein L.P. now owns 2,515,878 shares of the company's stock valued at $319,567,000 after purchasing an additional 476,564 shares during the period. Institutional investors own 97.25% of the company's stock.

Encompass Health Stock Down 2.3%

Shares of NYSE EHC opened at $99.13 on Tuesday. The stock has a market cap of $9.83 billion, a PE ratio of 16.55, a PEG ratio of 2.21 and a beta of 0.72. The business has a fifty day moving average of $104.35 and a two-hundred day moving average of $104.47. Encompass Health Corporation has a 52-week low of $92.77 and a 52-week high of $127.99. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17.

Encompass Health (NYSE:EHC - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.09. The business had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The firm's quarterly revenue was up 9.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.37 EPS. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, equities research analysts expect that Encompass Health Corporation will post 5.97 earnings per share for the current fiscal year.

Encompass Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be paid a $0.19 dividend. The ex-dividend date is Wednesday, July 1st. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.8%. Encompass Health's payout ratio is 12.69%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on EHC. Wall Street Zen upgraded Encompass Health from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Barclays lowered their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a report on Tuesday, May 5th. TD Cowen began coverage on shares of Encompass Health in a research note on Thursday, May 28th. They issued a "buy" rating and a $125.00 price objective for the company. Weiss Ratings reiterated a "buy (b-)" rating on shares of Encompass Health in a research report on Monday, June 8th. Finally, Leerink Partners set a $152.00 target price on shares of Encompass Health in a research note on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Encompass Health presently has a consensus rating of "Buy" and a consensus target price of $143.86.

Insider Activity at Encompass Health

In other news, EVP Patrick William Tuer sold 682 shares of the business's stock in a transaction that occurred 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 transaction, the executive vice president directly owned 24,755 shares of the company's stock, valued at $2,588,382.80. The trade was a 2.68% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.80% of the stock is owned by insiders.

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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