Bank of New York Mellon Corp Lowers Position in Encompass Health Corporation $EHC

Key Points

• Bank of New York Mellon reduced its Encompass Health stake by 12.3% in the fourth quarter, selling 124,848 shares and ending with 886,331 shares valued at about $94.1 million.
• Encompass Health reported better-than-expected Q1 results, with EPS of $1.60 versus estimates of $1.51 and revenue of $1.59 billion, up 9% year over year.
• Analysts remain constructive on the stock, with a consensus Buy rating and an average price target of $143.86; the company also announced a quarterly dividend of $0.19 per share.

Bank of New York Mellon Corp lessened its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 12.3% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 886,331 shares of the company's stock after selling 124,848 shares during the quarter. Bank of New York Mellon Corp owned about 0.88% of Encompass Health worth $94,075,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in the stock. WPG Advisers LLC raised its stake in shares of Encompass Health by 73.3% in the fourth quarter. WPG Advisers LLC now owns 324 shares of the company's stock worth $34,000 after purchasing an additional 137 shares during the last quarter. Flagship Harbor Advisors LLC purchased a new position in shares of Encompass Health in the fourth quarter worth $37,000. Assetmark Inc. raised its stake in shares of Encompass Health by 88.1% in the third quarter. Assetmark Inc. now owns 299 shares of the company's stock worth $38,000 after purchasing an additional 140 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its stake in shares of Encompass Health by 36,200.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock worth $46,000 after purchasing an additional 362 shares during the last quarter. Finally, Covestor Ltd raised its stake in shares of Encompass Health by 24.4% in the fourth quarter. Covestor Ltd now owns 540 shares of the company's stock worth $57,000 after purchasing an additional 106 shares during the last quarter. Hedge funds and other institutional investors own 97.25% of the company's stock.

Insider Buying and Selling

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

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Wall Street Zen upgraded Encompass Health from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. TD Cowen initiated coverage on Encompass Health in a research report on Thursday, May 28th. They set a "buy" rating and a $125.00 price objective for the company. Leerink Partners set a $152.00 price objective on Encompass Health in a research report on Friday, May 22nd. Finally, Barclays reduced their price objective on Encompass Health from $153.00 to $140.00 and set an "overweight" rating for the company in a research report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $143.86.

Encompass Health Stock Performance

NYSE EHC opened at $101.18 on Tuesday. The firm has a market cap of $10.04 billion, a price-to-earnings ratio of 16.89, a price-to-earnings-growth ratio of 2.27 and a beta of 0.72. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.76. The business has a 50-day moving average price of $103.86 and a 200-day moving average price of $104.88. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month high of $127.99.

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

Encompass Health Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be issued a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 0.8%. The ex-dividend date is Wednesday, July 1st. Encompass Health's dividend payout ratio (DPR) is presently 12.69%.

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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