Brown Advisory Inc. Sells 100,033 Shares of Encompass Health Corporation $EHC

Key Points

• Brown Advisory reduced its Encompass Health stake by 9.9% in the fourth quarter, selling 100,033 shares and leaving it with 912,762 shares valued at about $96.9 million.
• Encompass Health reported strong quarterly results, with EPS of $1.60 beating estimates and revenue of $1.59 billion topping forecasts; revenue rose 9% year over year.
• The company declared a quarterly dividend of $0.19 per share, while Wall Street remains broadly positive with a consensus Buy rating and an average price target of $143.86.

Brown Advisory Inc. cut its stake in Encompass Health Corporation (NYSE:EHC - Free Report) by 9.9% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 912,762 shares of the company's stock after selling 100,033 shares during the quarter. Brown Advisory Inc. owned about 0.91% of Encompass Health worth $96,881,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in EHC. Royal Bank of Canada increased its stake in shares of Encompass Health by 21.5% in the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company's stock worth $8,960,000 after acquiring an additional 15,677 shares in the last quarter. Millennium Management LLC increased its stake in shares of Encompass Health by 38.4% in the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company's stock worth $9,338,000 after acquiring an additional 25,574 shares in the last quarter. Caxton Associates LLP bought a new position in shares of Encompass Health in the 1st quarter worth about $259,000. Walleye Capital LLC increased its stake in shares of Encompass Health by 667.6% in the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company's stock worth $800,000 after acquiring an additional 7,671 shares in the last quarter. Finally, Gamco Investors INC. ET AL bought a new position in shares of Encompass Health in the 2nd quarter worth about $588,000. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Stock Performance

Shares of NYSE EHC opened at $101.49 on Monday. The firm's 50-day moving average price is $104.31 and its 200-day moving average price is $104.59. 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 company has a market cap of $10.07 billion, a PE ratio of 16.94, a PEG ratio of 2.21 and a beta of 0.72. Encompass Health Corporation has a 52-week low of $92.77 and a 52-week 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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.51 by $0.09. The firm had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The business's quarterly revenue was up 9.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.37 EPS. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, analysts anticipate that Encompass Health Corporation will post 5.97 EPS for the current year.

Encompass Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be paid a dividend of $0.19 per share. The ex-dividend date is Wednesday, July 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.7%. Encompass Health's dividend payout ratio (DPR) is presently 12.69%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on EHC. Wall Street Zen upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. TD Cowen initiated coverage on shares of Encompass Health in a research report on Thursday, May 28th. They set a "buy" rating and a $125.00 price objective on the stock. Barclays cut their price objective 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. Weiss Ratings reissued a "buy (b-)" rating on shares of Encompass Health in a research report on Monday, June 8th. Finally, Leerink Partners set a $152.00 price objective 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 assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $143.86.

Insider Activity

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

Encompass Health 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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