Encompass Health Corporation $EHC Shares Sold by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group cut its Encompass Health stake by 7.4%, selling 68,415 shares and retaining 861,915 shares worth approximately $104.7 million. Institutional investors still own 97.25% of the company.
• Encompass Health reported quarterly earnings of $1.52 per share, beating estimates of $1.36, while revenue rose 8.9% year over year to $1.61 billion. The company also declared a quarterly dividend of $0.21 per share.
• Analysts remain broadly bullish, with the stock carrying an average “Buy” rating and a consensus price target of $154.25. However, company insiders sold 186,912 shares worth about $23.4 million during the quarter.

Sumitomo Mitsui Trust Group Inc. reduced its stake in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 7.4% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 861,915 shares of the company's stock after selling 68,415 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.87% of Encompass Health worth $104,714,000 as of its most recent SEC filing.

A number of other institutional investors also recently added to or reduced their stakes in EHC. Transamerica Financial Advisors LLC bought a new position in Encompass Health in the second quarter worth about $29,000. Persistent Asset Partners Ltd purchased a new stake in shares of Encompass Health during the second quarter valued at about $36,000. Toth Financial Advisory Corp purchased a new stake in shares of Encompass Health during the third quarter valued at about $38,000. Keating Financial Advisory Services Inc. bought a new stake in shares of Encompass Health in the 2nd quarter valued at about $39,000. Finally, Assetmark Inc. boosted its holdings in shares of Encompass Health by 89.6% in the 1st quarter. Assetmark Inc. now owns 455 shares of the company's stock valued at $44,000 after buying an additional 215 shares in the last quarter. Institutional investors own 97.25% of the company's stock.

Encompass Health Trading Up 1.0%

Encompass Health stock opened at $137.28 on Tuesday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. The stock has a market cap of $13.54 billion, a PE ratio of 21.45, a price-to-earnings-growth ratio of 2.47 and a beta of 0.74. The stock has a 50-day moving average of $123.23 and a two-hundred day moving average of $110.17. Encompass Health Corporation has a one year low of $92.77 and a one year high of $138.35.

Encompass Health (NYSE:EHC - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share for the quarter, topping analysts' consensus estimates of $1.36 by $0.16. Encompass Health had a return on equity of 18.62% and a net margin of 10.17%. The business had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the previous year, the firm earned $1.23 earnings per share. The company's revenue was up 8.9% on a year-over-year basis. On average, research analysts anticipate that Encompass Health Corporation will post 6.28 EPS for the current fiscal year.

Encompass Health Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be paid a $0.21 dividend. The ex-dividend date is Monday, January 4th. This represents a $0.84 dividend on an annualized basis and a yield of 0.6%. Encompass Health's dividend payout ratio (DPR) is 13.12%.

Insider Buying and Selling

In other Encompass Health news, EVP John Darby sold 4,858 shares of the firm's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $121.09, for a total value of $588,255.22. Following the completion of the transaction, the executive vice president owned 75,041 shares of the company's stock, valued at approximately $9,086,714.69. This trade represents a 6.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the completion of the transaction, the chief executive officer directly owned 267,814 shares of the company's stock, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 186,912 shares of company stock valued at $23,434,845 over the last quarter. 1.80% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $155.00 price objective on shares of Encompass Health in a research report on Friday. TD Cowen increased their target price on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Friday. Weiss Ratings raised shares of Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Truist Financial restated a "buy" rating and issued a $156.00 target price (up from $150.00) on shares of Encompass Health in a research note on Friday. Finally, KeyCorp lifted their price target on shares of Encompass Health from $147.00 to $150.00 and gave the stock an "overweight" rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $154.25.

Encompass Health Company Profile

Encompass Health Corporation NYSE: EHC is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company's services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.

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