Encompass Health Corporation $EHC Stake Cut by Nordea Investment Management AB

Key Points

• Nordea Investment Management AB trimmed its Encompass Health stake by 11.7% in Q4, selling 11,556 shares and ending the quarter with 86,948 shares worth about $9.32 million.
• Company insiders sold sizable positions: CEO Mark J. Tarr sold 150,000 shares for roughly $16.75 million (reducing his stake by 28.46%), and Treasurer Edmund Fay sold 11,937 shares for about $1.28 million.
• Encompass Health beat quarterly EPS expectations ($1.46 vs. $1.29), reported revenue up 9.9% year-over-year, set FY2026 EPS guidance of $5.81–$6.10, and carries a consensus Buy rating with an average price target of $143.29.

Nordea Investment Management AB cut its holdings in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 11.7% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 86,948 shares of the company's stock after selling 11,556 shares during the quarter. Nordea Investment Management AB owned 0.09% of Encompass Health worth $9,322,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently bought and sold shares of EHC. Citizens National Bank Trust Department acquired a new position in shares of Encompass Health in the 3rd quarter valued at about $26,000. First Horizon Corp acquired a new stake in shares of Encompass Health during the third quarter worth approximately $34,000. Westside Investment Management Inc. grew its position in Encompass Health by 56.7% during the third quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock valued at $35,000 after purchasing an additional 101 shares in the last quarter. Assetmark Inc. increased its stake in Encompass Health by 88.1% in the 3rd quarter. Assetmark Inc. now owns 299 shares of the company's stock valued at $38,000 after buying an additional 140 shares during the period. Finally, Root Financial Partners LLC acquired a new position in Encompass Health in the 3rd quarter valued at approximately $39,000. Hedge funds and other institutional investors own 97.25% of the company's stock.

Insiders Place Their Bets

In other Encompass Health news, CEO Mark J. Tarr sold 150,000 shares of the firm's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Treasurer Edmund Fay sold 11,937 shares of the business's stock in a transaction dated 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 completion of the sale, the treasurer directly owned 89,325 shares of the company's stock, valued at $9,557,775. This represents a 11.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.00% of the company's stock.

Encompass Health Trading Up 1.3%

NYSE:EHC opened at $98.80 on Thursday. The stock's 50 day moving average price is $102.72 and its 200 day moving average price is $111.60. Encompass Health Corporation has a 52 week low of $92.77 and a 52 week high of $127.99. The company has a market capitalization of $9.82 billion, a P/E ratio of 17.83, a P/E/G ratio of 1.87 and a beta of 0.71. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.08 and a current ratio of 1.08.

Encompass Health (NYSE:EHC - Get Free Report) last posted its earnings results on Thursday, February 5th. The company reported $1.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.29 by $0.17. The firm had revenue of $3.09 billion during the quarter, compared to analysts' expectations of $1.54 billion. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The company's revenue was up 9.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.17 earnings per share. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. On average, research analysts forecast that Encompass Health Corporation will post 4.8 EPS for the current fiscal year.

Encompass Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, April 1st. Encompass Health's payout ratio is presently 13.72%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on EHC shares. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a research note on Sunday, January 18th. Barclays increased their price objective on Encompass Health from $150.00 to $153.00 and gave the stock an "overweight" rating in a report on Friday, February 6th. Two equities research 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. Based on data from MarketBeat.com, Encompass Health has a consensus rating of "Buy" and an average price target of $143.29.

Encompass Health Company 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.

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