Junto Capital Management LP Lowers Stock Holdings in Encompass Health Corporation $EHC

Key Points

• Junto Capital Management LP significantly reduced its stake in Encompass Health Corporation by 43.8%, now owning approximately 0.23% of the company valued at $23.7 million after selling 182,599 shares.
• Encompass Health has received several positive updates from analysts, with target prices raised to between $135.00 and $140.00, as well as various upgrades in ratings.
• The company recently announced an increase in its quarterly dividend to $0.19, reflecting a positive change from the previous amount of $0.17, with a current payout ratio of 13.31%.

Junto Capital Management LP trimmed its position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 43.8% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 234,003 shares of the company's stock after selling 182,599 shares during the quarter. Junto Capital Management LP owned approximately 0.23% of Encompass Health worth $23,700,000 as of its most recent filing with the SEC.

Several other large investors have also recently made changes to their positions in EHC. WPG Advisers LLC purchased a new stake in shares of Encompass Health during the first quarter worth approximately $27,000. Colonial Trust Co SC acquired a new position in Encompass Health during the fourth quarter worth $29,000. Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake in Encompass Health by 749.0% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 416 shares of the company's stock worth $42,000 after buying an additional 367 shares during the last quarter. Arlington Trust Co LLC boosted its stake in Encompass Health by 22.9% during the first quarter. Arlington Trust Co LLC now owns 671 shares of the company's stock worth $68,000 after buying an additional 125 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its stake in Encompass Health by 19.0% during the first quarter. Caitong International Asset Management Co. Ltd now owns 720 shares of the company's stock worth $73,000 after buying an additional 115 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Stock Down 0.2%

Shares of EHC traded down $0.26 during mid-day trading on Wednesday, reaching $123.44. The company's stock had a trading volume of 575,367 shares, compared to its average volume of 813,001. Encompass Health Corporation has a 12-month low of $87.85 and a 12-month high of $124.67. The stock has a market cap of $12.43 billion, a PE ratio of 24.16, a price-to-earnings-growth ratio of 2.13 and a beta of 0.92. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.06 and a quick ratio of 1.06. The company's 50 day moving average is $116.74 and its 200 day moving average is $111.45.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings data on Monday, August 4th. The company reported $1.40 EPS for the quarter, beating analysts' consensus estimates of $1.20 by $0.20. Encompass Health had a return on equity of 17.83% and a net margin of 9.22%.The business had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the prior year, the business posted $1.11 EPS. The business's revenue for the quarter was up 12.0% on a year-over-year basis. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. Equities analysts anticipate that Encompass Health Corporation will post 4.8 EPS for the current fiscal year.

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be given a $0.19 dividend. This is a boost from Encompass Health's previous quarterly dividend of $0.17. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.6%. Encompass Health's payout ratio is currently 13.31%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on EHC shares. Wall Street Zen lowered Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. Stephens raised Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price target on the stock in a research note on Thursday, June 5th. Truist Financial upped their price target on Encompass Health from $135.00 to $140.00 and gave the company a "buy" rating in a research note on Thursday, August 14th. KeyCorp upped their price target on Encompass Health from $122.00 to $135.00 and gave the company an "overweight" rating in a research note on Tuesday, May 27th. Finally, UBS Group upped their price target on Encompass Health from $130.00 to $140.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating and six have issued a Buy rating to the company. According to data from MarketBeat, Encompass Health currently has an average rating of "Buy" and an average target price of $134.00.

Insider Activity

In other Encompass Health news, EVP Patrick William Tuer sold 1,020 shares of the stock in a transaction that occurred on Wednesday, August 27th. The stock was 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 of the company's stock, valued at approximately $2,329,177.14. This trade represents a 5.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.10% of the stock is currently owned by company insiders.

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.