Bank of America Corp DE Purchases New Stake in Encompass Health Corporation $EHC

Key Points

• Bank of America acquired 788,090 Encompass Health shares worth approximately $79.7 million, representing about 0.8% of the company. Institutional investors and hedge funds collectively own 97.25% of EHC.
• Encompass Health exceeded quarterly expectations, reporting $1.55 EPS versus the $1.48 consensus and $1.60 billion in revenue, up 9.6% year over year. The company raised its quarterly dividend from $0.19 to $0.21 per share.
• Analysts maintain a broadly positive outlook, with a consensus “Buy” rating and an average price target of $148.20 compared with the stock’s reported $121.84 price. Meanwhile, insiders sold 186,912 shares worth about $23.4 million during the last quarter.

Bank of America Corp DE acquired a new position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 788,090 shares of the company's stock, valued at approximately $79,660,000. Bank of America Corp DE owned approximately 0.80% of Encompass Health at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of EHC. BlackRock Inc. acquired a new position in Encompass Health in the second quarter worth about $1,059,762,000. Geode Capital Management LLC raised its position in shares of Encompass Health by 7.6% during the 4th quarter. Geode Capital Management LLC now owns 1,946,134 shares of the company's stock valued at $206,605,000 after acquiring an additional 137,892 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Encompass Health by 3.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,674,784 shares of the company's stock valued at $162,013,000 after acquiring an additional 50,647 shares in the last quarter. Norges Bank bought a new position in Encompass Health during the fourth quarter worth $133,221,000. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Encompass Health by 1.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,182,574 shares of the company's stock worth $114,390,000 after purchasing an additional 18,740 shares during the period. Institutional investors and hedge funds own 97.25% of the company's stock.

Insider Transactions at Encompass Health

In other news, EVP John Darby sold 4,858 shares of the firm's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $121.09, for a total value of $588,255.22. Following the transaction, the executive vice president directly owned 75,041 shares in the company, valued at $9,086,714.69. This trade represents a 6.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 267,814 shares in the company, valued at $33,602,622.58. The trade was a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 186,912 shares of company stock valued at $23,434,845 in the last quarter. 1.80% of the stock is currently owned by corporate insiders.

Encompass Health Trading Down 1.1%

NYSE EHC opened at $121.84 on Friday. The firm's 50 day moving average price is $118.44 and its two-hundred day moving average price is $108.60. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month high of $127.99. The stock has a market cap of $12.02 billion, a price-to-earnings ratio of 19.84, a PEG ratio of 2.47 and a beta of 0.75.

Encompass Health (NYSE:EHC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, topping 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 company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the firm posted $1.40 EPS. The business's revenue 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. Equities analysts anticipate that Encompass Health Corporation will post 6.08 EPS for the current year.

Encompass Health Increases Dividend

The company also recently announced 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 represents a $0.84 annualized dividend and a dividend yield of 0.7%. This is a boost from Encompass Health's previous quarterly dividend of $0.19. Encompass Health's dividend payout ratio is presently 12.38%.

Wall Street Analyst Weigh In

EHC has been the subject of several research reports. UBS Group lifted their price target 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. Wall Street Zen lowered Encompass Health from a "buy" rating to a "hold" rating in a report on Saturday, September 5th. TD Cowen raised their price target on Encompass Health from $125.00 to $140.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Truist Financial upped their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Finally, Weiss Ratings upgraded Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $148.20.

About Encompass Health

Encompass Health Corporation NYSE: EHC is a provider of post-acute healthcare services in the United States. The company operates inpatient rehabilitation hospitals that care for patients recovering from illness, injury, surgery or other medical conditions requiring intensive rehabilitation.

Its rehabilitation programs commonly serve patients recovering from strokes, brain and spinal cord injuries, neurological disorders, cardiac and pulmonary conditions, hip fractures, amputations and other orthopedic conditions.

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