Bank of America Corp DE Sells 98,672 Shares of Encompass Health Corporation $EHC

Key Points

• Bank of America reduced its Encompass Health stake by 10.3%, selling 98,672 shares during the first quarter and retaining 862,512 shares valued at approximately $83.4 million. Institutional investors collectively own 97.25% of the company.
• Encompass Health exceeded quarterly expectations, reporting $1.55 in EPS on $1.60 billion in revenue, with revenue up 9.6% year over year. The company guided to fiscal 2026 EPS of $6.02–$6.25.
• The company raised its quarterly dividend from $0.19 to $0.21 per share, equivalent to an annualized $0.84 dividend and a 0.7% yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $146.57.

Bank of America Corp DE lessened its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 10.3% during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 862,512 shares of the company's stock after selling 98,672 shares during the quarter. Bank of America Corp DE owned 0.87% of Encompass Health worth $83,431,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of EHC. Price T Rowe Associates Inc. MD boosted its stake in Encompass Health by 24.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company's stock valued at $510,047,000 after buying an additional 948,202 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Encompass Health by 3,059,159.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock worth $402,640,000 after acquiring an additional 3,793,358 shares in the last quarter. Wellington Management Group LLP raised its stake in Encompass Health by 21.7% during the fourth quarter. Wellington Management Group LLP now owns 3,384,877 shares of the company's stock worth $359,271,000 after acquiring an additional 603,472 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Encompass Health by 27.2% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company's stock worth $289,008,000 after acquiring an additional 581,812 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its stake in shares of Encompass Health by 6.8% in the 2nd quarter. Alliancebernstein L.P. now owns 2,039,314 shares of the company's stock valued at $250,081,000 after purchasing an additional 129,276 shares in the last quarter. Institutional investors own 97.25% of the company's stock.

Encompass Health Stock Performance

Shares of Encompass Health stock opened at $125.39 on Friday. The stock has a market cap of $12.44 billion, a price-to-earnings ratio of 20.42, a P/E/G ratio of 2.68 and a beta of 0.72. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month high of $127.99. The company's fifty day moving average is $106.91 and its 200 day moving average is $104.59. The company has a quick ratio of 1.17, a current ratio of 1.19 and a debt-to-equity ratio of 0.76.

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, topping the consensus estimate of $1.48 by $0.07. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.Encompass Health's revenue for the quarter was up 9.6% compared to the same quarter last year. During the same period last year, the company earned $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Sell-side analysts forecast that Encompass Health Corporation will post 6.07 EPS for the current year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be given a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. This is a positive change from Encompass Health's previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. Encompass Health's dividend payout ratio is 12.69%.

Insider Activity at Encompass Health

In related news, EVP Patrick William Tuer sold 682 shares of Encompass Health 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.80% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. Truist Financial lifted their price target on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a report on Friday. Wall Street Zen downgraded shares of Encompass Health from a "buy" rating to a "hold" rating in a research note on Saturday. TD Cowen initiated coverage on shares of Encompass Health in a research report on Thursday, May 28th. They issued a "buy" rating and a $125.00 target price on the stock. 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 research note on Thursday. Finally, Weiss Ratings downgraded shares of Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $146.57.

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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