Encompass Health Corporation $EHC Position Cut by Copeland Capital Management LLC

Key Points

• Copeland Capital reduced its stake by 5.2%, selling 41,839 shares and leaving it with 764,703 shares of Encompass Health (about $81.2M), representing roughly 0.76% of the company and its fourth-largest holding.
• Encompass Health reported stronger-than-expected quarterly results with $1.46 EPS and set FY2026 guidance of $5.81–$6.10 per share (analysts’ consensus ~5.91), while the stock trades near $102 with a ~$10.1B market cap.
• Insiders sold stock recently (CEO sold 150,000 shares for about $16.7M; the treasurer also sold), the company pays a $0.19 quarterly dividend ($0.76 annual, ~0.7% yield), and institutional ownership stands around 97.25%.

Copeland Capital Management LLC reduced its position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 5.2% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 764,703 shares of the company's stock after selling 41,839 shares during the period. Encompass Health comprises about 1.8% of Copeland Capital Management LLC's holdings, making the stock its 4th largest holding. Copeland Capital Management LLC owned about 0.76% of Encompass Health worth $81,166,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also modified their holdings of the company. Royal Bank of Canada lifted its stake in Encompass Health by 21.5% during 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 lifted its stake in Encompass Health by 38.4% during 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 acquired a new position in Encompass Health during the 1st quarter worth about $259,000. Walleye Capital LLC lifted its stake in Encompass Health by 667.6% during 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 acquired a new position in Encompass Health during the 2nd quarter worth about $588,000. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms recently issued reports on EHC. Wall Street Zen lowered Encompass Health from a "buy" rating to a "hold" rating in a research note on Saturday, April 11th. Barclays upped their price objective on Encompass Health from $150.00 to $153.00 and gave the stock an "overweight" rating in a research report on Friday, February 6th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, Encompass Health presently has an average rating of "Buy" and a consensus target price of $143.29.

Encompass Health Stock Down 0.2%

Encompass Health stock opened at $101.95 on Friday. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month high of $127.99. The stock's fifty day simple moving average is $103.82 and its 200-day simple moving average is $108.42. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.76. The firm has a market capitalization of $10.14 billion, a P/E ratio of 18.40, a P/E/G ratio of 1.96 and a beta of 0.75.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings data on Thursday, February 5th. The company reported $1.46 earnings per share for the quarter, topping analysts' consensus estimates of $1.29 by $0.17. Encompass Health had a return on equity of 18.20% and a net margin of 9.54%.The business had revenue of $3.09 billion for the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the prior year, the company earned $1.17 earnings per share. The company's revenue was up 9.9% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. As a group, equities analysts expect that Encompass Health Corporation will post 5.91 earnings per share for the current fiscal year.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st were issued a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Wednesday, April 1st. Encompass Health's dividend payout ratio is 13.72%.

Insider Buying and Selling at Encompass Health

In related news, Treasurer Edmund Fay sold 11,937 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $107.00, for a total value of $1,277,259.00. Following the transaction, the treasurer owned 89,325 shares of the company's stock, valued at $9,557,775. This represents a 11.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Mark J. Tarr sold 150,000 shares of the stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total value of $16,746,000.00. Following the completion of the transaction, the chief executive officer directly owned 377,070 shares in the company, valued at $42,096,094.80. This trade represents a 28.46% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.80% of the company's stock.

About Encompass Health

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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