Encompass Health Corporation $EHC Holdings Raised by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital increased its stake in Encompass Health by 1.6% in the first quarter, ending with 1,182,574 shares valued at about $114.4 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 also raised its quarterly dividend to $0.21 per share from $0.19, while analysts currently rate the stock a Moderate Buy with an average price target of $143.86.

Arrowstreet Capital Limited Partnership boosted its stake in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 1.6% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 1,182,574 shares of the company's stock after buying an additional 18,740 shares during the period. Arrowstreet Capital Limited Partnership owned about 1.19% of Encompass Health worth $114,390,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the company. Caxton Associates LLP purchased a new stake in Encompass Health in the 1st quarter worth about $2,082,000. Inceptionr LLC acquired a new stake in shares of Encompass Health during the first quarter worth approximately $497,000. Systematic Financial Management LP grew its position in Encompass Health by 1.3% during the first quarter. Systematic Financial Management LP now owns 446,405 shares of the company's stock valued at $43,181,000 after purchasing an additional 5,653 shares in the last quarter. Sei Investments Co. increased its stake in Encompass Health by 34.9% in the 1st quarter. Sei Investments Co. now owns 508,940 shares of the company's stock valued at $49,228,000 after buying an additional 131,536 shares during the period. Finally, Group One Trading LLC purchased a new stake in Encompass Health in the 1st quarter worth approximately $57,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

Encompass Health Stock Up 1.4%

Encompass Health stock opened at $112.66 on Friday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.17 and a quick ratio of 1.17. Encompass Health Corporation has a fifty-two week low of $92.77 and a fifty-two week high of $127.99. The firm has a fifty day moving average price of $104.97 and a two-hundred day moving average price of $103.80. The firm has a market cap of $11.18 billion, a price-to-earnings ratio of 18.81, a P/E/G ratio of 2.46 and a beta of 0.74.

Encompass Health (NYSE:EHC - Get Free Report) last released its 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. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The firm had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same quarter last year, the firm posted $1.37 EPS. The company's revenue was up 9.0% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, analysts forecast that Encompass Health Corporation will post 5.96 earnings per share for the current 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 given a dividend of $0.21 per share. This is an increase from Encompass Health's previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. Encompass Health's dividend payout ratio (DPR) is presently 12.69%.

Analyst Ratings Changes

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

Insiders Place Their Bets

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $104.56, for a total transaction of $71,309.92. Following the completion of the transaction, the executive vice president directly owned 24,755 shares in the company, valued at $2,588,382.80. This represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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.

Want to see what other hedge funds are holding EHC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Encompass Health Corporation (NYSE:EHC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.