Bank of New York Mellon Corp Sells 20,789 Shares of Encompass Health Corporation $EHC

Key Points

• Bank of New York Mellon trimmed its Encompass Health stake by 2.3% in the first quarter, selling 20,789 shares and ending with 865,542 shares valued at about $83.7 million.
• Encompass Health reported strong quarterly results, with EPS of $1.60 and revenue of $1.59 billion, both ahead of analyst estimates. Revenue rose 9.0% year over year, and the company reaffirmed FY 2026 EPS guidance of $5.89 to $6.11.
• Wall Street sentiment remains generally positive: the stock has a Moderate Buy consensus rating and an average price target of $143.86, despite a few mixed rating changes from analysts.

Bank of New York Mellon Corp reduced its stake in Encompass Health Corporation (NYSE:EHC - Free Report) by 2.3% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 865,542 shares of the company's stock after selling 20,789 shares during the period. Bank of New York Mellon Corp owned 0.87% of Encompass Health worth $83,724,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of the stock. EP Wealth Advisors LLC lifted its position in Encompass Health by 2.4% during the second quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company's stock worth $453,000 after acquiring an additional 88 shares during the last quarter. Allworth Financial LP increased its stake in shares of Encompass Health by 14.7% during the third quarter. Allworth Financial LP now owns 701 shares of the company's stock worth $89,000 after purchasing an additional 90 shares during the period. Gibson Capital LLC lifted its holdings in Encompass Health by 4.3% during the 1st quarter. Gibson Capital LLC now owns 2,431 shares of the company's stock worth $235,000 after purchasing an additional 101 shares during the last quarter. Leuthold Group LLC boosted its stake in Encompass Health by 0.3% in the 4th quarter. Leuthold Group LLC now owns 31,168 shares of the company's stock valued at $3,308,000 after purchasing an additional 104 shares during the period. Finally, Covestor Ltd grew its holdings in Encompass Health by 24.4% in the 4th quarter. Covestor Ltd now owns 540 shares of the company's stock valued at $57,000 after buying an additional 106 shares in the last quarter. Institutional investors and hedge funds own 97.25% of the company's stock.

Encompass Health Trading Down 0.6%

Shares of Encompass Health stock opened at $111.87 on Wednesday. The company has a quick ratio of 1.17, a current 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 company has a market capitalization of $11.10 billion, a price-to-earnings ratio of 18.68, a PEG ratio of 2.45 and a beta of 0.74. The firm's 50-day moving average price is $104.70 and its two-hundred day moving average price is $103.67.

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

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st were issued a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Wednesday, July 1st. Encompass Health's dividend payout ratio (DPR) is currently 12.69%.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on EHC. TD Cowen started coverage on Encompass Health in a report on Thursday, May 28th. They set a "buy" rating and a $125.00 target price for the company. Weiss Ratings lowered shares of Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, June 26th. Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research note on Friday, May 22nd. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, Barclays decreased their target price on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Encompass Health presently has a consensus rating of "Moderate Buy" and an average price target of $143.86.

Insider Buying and Selling at Encompass Health

In other news, EVP Patrick William Tuer sold 682 shares of Encompass Health stock in a transaction 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 owned 24,755 shares in the company, valued at approximately $2,588,382.80. This trade represents a 2.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.80% of the company's stock.

Encompass Health Company Profile

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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