Dark Forest Capital Management LP Acquires 44,676 Shares of Encompass Health Corporation $EHC

Key Points

• Dark Forest Capital Management LP increased its holdings in Encompass Health Corporation by 611.6%, now owning approximately 51,981 shares valued at around $5.27 million.
• Encompass Health recently announced a quarterly dividend increase to $0.19 per share, up from $0.17, with an annualized yield of 0.6%.
• The company reported strong earnings, with EPS of $1.40 for the last quarter, exceeding estimates and reflecting a 12% year-over-year revenue increase.

Dark Forest Capital Management LP raised its holdings in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 611.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 51,981 shares of the company's stock after acquiring an additional 44,676 shares during the quarter. Dark Forest Capital Management LP owned about 0.05% of Encompass Health worth $5,265,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of EHC. Nuveen LLC bought a new stake in Encompass Health during the 1st quarter valued at $50,665,000. Farallon Capital Management LLC raised its holdings in Encompass Health by 15,266.7% during the 4th quarter. Farallon Capital Management LLC now owns 461,000 shares of the company's stock valued at $42,573,000 after acquiring an additional 458,000 shares during the period. T. Rowe Price Investment Management Inc. raised its holdings in Encompass Health by 25.6% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 2,080,918 shares of the company's stock valued at $210,756,000 after acquiring an additional 424,691 shares during the period. American Century Companies Inc. raised its holdings in Encompass Health by 78.6% during the 1st quarter. American Century Companies Inc. now owns 723,169 shares of the company's stock valued at $73,243,000 after acquiring an additional 318,251 shares during the period. Finally, Invesco Ltd. increased its holdings in shares of Encompass Health by 5.1% in the first quarter. Invesco Ltd. now owns 5,818,783 shares of the company's stock worth $589,326,000 after purchasing an additional 282,532 shares during the period. Institutional investors own 97.25% of the company's stock.

Analyst Ratings Changes

EHC has been the topic of several research analyst reports. UBS Group upped their price target on shares of Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Stephens raised shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price target on the stock in a report on Thursday, June 5th. Truist Financial upped their price target on shares of Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a report on Thursday, August 14th. Wall Street Zen cut shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. Finally, KeyCorp upped their price target on shares of Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a report on Tuesday, May 27th. One analyst has rated the stock with a Strong Buy rating and six have issued a Buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $134.00.

Insider Buying and Selling at Encompass Health

In other news, EVP Patrick William Tuer sold 1,020 shares of the firm's stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $123.59, for a total value of $126,061.80. Following the transaction, the executive vice president owned 18,846 shares in the company, valued at approximately $2,329,177.14. This trade represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 2.00% of the company's stock.

Encompass Health Price Performance

NYSE EHC traded up $1.11 during trading hours on Friday, reaching $125.59. 607,588 shares of the stock traded hands, compared to its average volume of 651,849. The stock has a 50 day simple moving average of $116.93 and a two-hundred day simple moving average of $111.86. Encompass Health Corporation has a 1 year low of $87.85 and a 1 year high of $125.86. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.06 and a quick ratio of 1.06. The company has a market cap of $12.65 billion, a price-to-earnings ratio of 24.58, a price-to-earnings-growth ratio of 2.18 and a beta of 0.92.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings results on Monday, August 4th. The company reported $1.40 earnings per share for the quarter, beating analysts' consensus estimates of $1.20 by $0.20. Encompass Health had a return on equity of 17.83% and a net margin of 9.22%.The business had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter last year, the business posted $1.11 earnings per share. The company's revenue for the quarter was up 12.0% on a year-over-year basis. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. On average, analysts predict that Encompass Health Corporation will post 4.8 EPS for the current fiscal year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 1st will be given a $0.19 dividend. The ex-dividend date is Wednesday, October 1st. This is an increase from Encompass Health's previous quarterly dividend of $0.17. This represents a $0.76 annualized dividend and a yield of 0.6%. Encompass Health's dividend payout ratio is presently 13.31%.

Encompass Health Profile

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.