Avidity Partners Management LP Purchases 10,400 Shares of Encompass Health Corporation $EHC

Key Points

• Avidity Partners Management LP increased its Encompass Health stake by 32.9% in the first quarter, holding 42,000 shares valued at approximately $4.1 million. Institutional investors collectively own 97.25% of the company.
• Encompass Health reported quarterly EPS of $1.60, exceeding estimates by $0.09, while revenue rose 9% year over year to $1.59 billion. The company also raised its quarterly dividend from $0.19 to $0.21, implying a 0.8% yield.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $143.86, compared with the stock’s reported price of $111.27.

Avidity Partners Management LP raised its position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 32.9% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 42,000 shares of the company's stock after purchasing an additional 10,400 shares during the quarter. Encompass Health accounts for about 0.8% of Avidity Partners Management LP's investment portfolio, making the stock its 17th biggest holding. Avidity Partners Management LP's holdings in Encompass Health were worth $4,063,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in EHC. Northwestern Mutual Wealth Management Co. increased its holdings 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 worth $402,640,000 after purchasing an additional 3,793,358 shares during the last quarter. AlphaCore Capital LLC bought a new stake in Encompass Health in the fourth quarter worth $4,881,000. Sivik Global Healthcare LLC boosted its stake in shares of Encompass Health by 42.9% during the 4th quarter. Sivik Global Healthcare LLC now owns 50,000 shares of the company's stock worth $5,307,000 after purchasing an additional 15,000 shares during the period. Allspring Global Investments Holdings LLC grew its stake in shares of Encompass Health by 690.2% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 344,093 shares of the company's stock valued at $36,601,000 after buying an additional 300,546 shares during the last quarter. Finally, Systematic Financial Management LP raised its holdings in shares of Encompass Health by 3.6% in the fourth quarter. Systematic Financial Management LP now owns 440,752 shares of the company's stock worth $46,782,000 after buying an additional 15,462 shares during the period. Institutional investors own 97.25% of the company's stock.

Encompass Health Trading Up 0.3%

NYSE:EHC opened at $111.27 on Friday. The company has a market capitalization of $11.04 billion, a P/E ratio of 18.58, a PEG ratio of 2.42 and a beta of 0.74. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. Encompass Health Corporation has a 12 month low of $92.77 and a 12 month high of $127.99. The firm has a fifty day simple moving average of $105.76 and a 200-day simple moving average of $104.05.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.09. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The firm had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. During the same period in the prior year, the firm earned $1.37 EPS. The firm's revenue was up 9.0% on a year-over-year basis. On average, equities research analysts anticipate that Encompass Health Corporation will post 5.96 earnings per share for the current year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders 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 annualized dividend and a dividend yield of 0.8%. Encompass Health's dividend payout ratio (DPR) is 12.69%.

Insider Activity

In related news, EVP Patrick William Tuer sold 682 shares of Encompass Health stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $104.56, for a total transaction of $71,309.92. Following the completion of the sale, the executive vice president owned 24,755 shares of the company's stock, valued at $2,588,382.80. The trade was a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.80% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on EHC shares. Weiss Ratings cut Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, June 26th. TD Cowen began coverage on Encompass Health in a research note on Thursday, May 28th. They issued a "buy" rating and a $125.00 target price on the stock. Leerink Partners set a $152.00 target price on Encompass Health in a research report on Friday, May 22nd. Wall Street Zen upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, Barclays reduced their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $143.86.

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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