Candriam S.C.A. Makes New Investment in Encompass Health Corporation $EHC

Key Points

• Candriam S.C.A. opened a new position in Encompass Health, buying 69,375 shares worth about $6.7 million in the first quarter and ending with roughly 0.07% ownership.
• Encompass Health reported better-than-expected Q1 results, with EPS of $1.60 versus $1.51 expected and revenue of $1.59 billion, up 9% year over year.
• The company also declared a quarterly dividend of $0.19 per share, while analysts currently rate the stock Moderate Buy with an average price target of $143.86.

Candriam S.C.A. bought a new stake in Encompass Health Corporation (NYSE:EHC - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 69,375 shares of the company's stock, valued at approximately $6,711,000. Candriam S.C.A. owned about 0.07% of Encompass Health at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of the business. EP Wealth Advisors LLC raised its stake in Encompass Health by 2.4% during the 2nd quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company's stock worth $453,000 after acquiring an additional 88 shares in the last quarter. Allworth Financial LP grew its holdings 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 last quarter. Gibson Capital LLC grew its holdings in shares of Encompass Health by 4.3% during the first 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 increased its position in shares of Encompass Health by 0.3% during the fourth quarter. Leuthold Group LLC now owns 31,168 shares of the company's stock worth $3,308,000 after purchasing an additional 104 shares in the last quarter. Finally, Covestor Ltd lifted its holdings in shares of 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 purchasing an additional 106 shares during the last quarter. 97.25% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, EVP Patrick William Tuer sold 682 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $104.56, for a total value of $71,309.92. Following the sale, the executive vice president directly owned 24,755 shares of the company's stock, valued at approximately $2,588,382.80. This trade represents 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 at the SEC website. 1.80% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. TD Cowen began coverage on Encompass Health in a research note on Thursday, May 28th. They issued a "buy" rating and a $125.00 price objective for the company. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Barclays reduced their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating for the company in a research report on Tuesday, May 5th. Weiss Ratings downgraded shares of Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, June 26th. Finally, Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research note on Friday, May 22nd. One investment 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 stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $143.86.

Encompass Health Stock Performance

Shares of EHC opened at $110.05 on Tuesday. 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 52-week low of $92.77 and a 52-week high of $127.99. The company has a 50-day simple moving average of $104.08 and a 200-day simple moving average of $103.50. The company has a market capitalization of $10.92 billion, a PE ratio of 18.37, a P/E/G ratio of 2.40 and a beta of 0.74.

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

Encompass Health Announces Dividend

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

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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