Adage Capital Partners GP L.L.C. Buys 21,100 Shares of Encompass Health Corporation $EHC

Key Points

• Adage Capital Partners GP L.L.C. increased its stake in Encompass Health Corporation by 11.5%, owning a total of 205,162 shares valued at approximately $20.78 million.
• Several analysts have upgraded Encompass Health's stock, with target prices ranging from $135.00 to $140.00 and a consensus rating of "Buy."
• Encompass Health recently announced a dividend increase from $0.17 to $0.19 per share, with a dividend yield of 0.6%.

Adage Capital Partners GP L.L.C. grew its holdings in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 11.5% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 205,162 shares of the company's stock after acquiring an additional 21,100 shares during the period. Adage Capital Partners GP L.L.C. owned about 0.20% of Encompass Health worth $20,779,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of EHC. Nuveen LLC acquired a new stake in shares of Encompass Health during the first quarter worth $50,665,000. Farallon Capital Management LLC increased its stake in Encompass Health by 15,266.7% in the fourth quarter. Farallon Capital Management LLC now owns 461,000 shares of the company's stock valued at $42,573,000 after purchasing an additional 458,000 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its stake in Encompass Health by 25.6% in the first quarter. T. Rowe Price Investment Management Inc. now owns 2,080,918 shares of the company's stock valued at $210,756,000 after purchasing an additional 424,691 shares in the last quarter. American Century Companies Inc. increased its stake in Encompass Health by 78.6% in the first quarter. American Century Companies Inc. now owns 723,169 shares of the company's stock valued at $73,243,000 after purchasing an additional 318,251 shares in the last quarter. Finally, Invesco Ltd. increased its stake in Encompass Health by 5.1% in the first quarter. Invesco Ltd. now owns 5,818,783 shares of the company's stock valued at $589,326,000 after purchasing an additional 282,532 shares in the last quarter. Institutional investors own 97.25% of the company's stock.

Encompass Health Price Performance

EHC stock traded down $1.41 during midday trading on Wednesday, reaching $123.88. The company had a trading volume of 77,770 shares, compared to its average volume of 804,595. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.06 and a quick ratio of 1.06. Encompass Health Corporation has a 1 year low of $87.85 and a 1 year high of $126.49. The company has a market capitalization of $12.48 billion, a P/E ratio of 24.26, a P/E/G ratio of 2.20 and a beta of 0.92. The firm has a 50-day moving average price of $117.09 and a 200-day moving average price of $112.30.

Encompass Health (NYSE:EHC - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The company reported $1.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.20 by $0.20. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The company had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.43 billion. During the same quarter in the prior year, the company earned $1.11 EPS. The firm's revenue 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, research analysts anticipate that Encompass Health Corporation will post 4.8 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be issued a dividend of $0.19 per share. The ex-dividend date is Wednesday, October 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.6%. This is an increase from Encompass Health's previous quarterly dividend of $0.17. Encompass Health's dividend payout ratio (DPR) is currently 14.87%.

Insider Buying and Selling

In related news, EVP Patrick William Tuer sold 1,020 shares of the company's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $123.59, for a total transaction of $126,061.80. Following the completion of the sale, the executive vice president directly owned 18,846 shares in the company, valued at $2,329,177.14. This represents a 5.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 2.10% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on EHC. Stephens upgraded shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price objective for the company in a report on Thursday, June 5th. UBS Group boosted 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. KeyCorp boosted 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. 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, Truist Financial lifted their price objective on shares of Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a research report on Thursday, August 14th. One investment analyst has rated the stock with a Strong Buy rating and seven have assigned a Buy rating to the company. According to data from MarketBeat, Encompass Health has an average rating of "Buy" and a consensus price target of $137.71.

Encompass Health Company 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.