Beacon Pointe Advisors LLC Makes New $2.11 Million Investment in Encompass Health Corporation $EHC

Key Points

• Beacon Pointe Advisors acquired 20,877 Encompass Health shares worth approximately $2.11 million in the second quarter. Institutional investors collectively own 97.25% of the company.
• Encompass Health exceeded quarterly expectations, reporting $1.55 EPS and $1.60 billion in revenue, with revenue up 9.6% year over year. Analysts maintain a consensus “Buy” rating with an average price target of $148.71.
• The company raised its quarterly dividend from $0.19 to $0.21 per share, while CEO Mark J. Tarr and EVP John Patrick Darby sold shares worth about $21.7 million and $1.1 million, respectively.

Beacon Pointe Advisors LLC acquired a new position in Encompass Health Corporation (NYSE:EHC - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 20,877 shares of the company's stock, valued at approximately $2,110,000.

A number of other hedge funds also recently made changes to their positions in EHC. BlackRock Inc. purchased a new position in Encompass Health during the second quarter valued at approximately $1,059,762,000. Price T Rowe Associates Inc. MD raised its position in shares of Encompass Health by 24.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company's stock valued at $510,047,000 after purchasing an additional 948,202 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock valued at $402,640,000 after buying an additional 3,793,358 shares in the last quarter. Wellington Management Group LLP boosted its holdings in Encompass Health by 21.7% in the 4th quarter. Wellington Management Group LLP now owns 3,384,877 shares of the company's stock worth $359,271,000 after buying an additional 603,472 shares during the period. Finally, T. Rowe Price Investment Management Inc. boosted its holdings in Encompass Health by 27.2% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company's stock worth $289,008,000 after buying an additional 581,812 shares during the period. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Price Performance

EHC stock opened at $120.98 on Friday. Encompass Health Corporation has a 52 week low of $92.77 and a 52 week high of $127.99. The firm has a market capitalization of $11.93 billion, a P/E ratio of 19.70, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. The company has a fifty day simple moving average of $113.20 and a two-hundred day simple moving average of $107.18. The company has a quick ratio of 1.19, 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 quarterly earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating analysts' consensus estimates of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The firm had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter last year, the firm earned $1.40 EPS. The firm's revenue for the quarter 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. Analysts anticipate that Encompass Health Corporation will post 6.08 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The firm 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 dividend of $0.21 per share. This is a positive change from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health's payout ratio is currently 12.38%.

Analysts Set New Price Targets

EHC has been the subject of a number of recent analyst reports. Weiss Ratings raised Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, August 12th. TD Cowen upped their price target on Encompass Health from $125.00 to $140.00 and gave the stock a "buy" rating in a research note on Monday, August 10th. UBS Group increased their price objective 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 upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a research report on Sunday, August 16th. Finally, Leerink Partners set a $152.00 target price on shares of Encompass Health in a research report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $148.71.

Insider Activity at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.47, for a total value of $21,724,879.56. Following the sale, the chief executive officer owned 267,814 shares in the company, valued at $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP John Patrick Darby sold 8,906 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the completion of the transaction, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,451,413.95. This trade represents a 10.61% decrease in their position. The SEC filing for this sale provides additional information. 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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