Encompass Health Corporation $EHC Stock Sold by Alps Advisors Inc.

Key Points

• Alps Advisors cut its Encompass Health stake by 10.7% in the third quarter, selling 16,446 shares and ending the period with 136,685 shares valued at about $16.6 million. Institutional investors collectively own 97.25% of the company.
• Encompass Health beat quarterly estimates, reporting EPS of $1.52 versus a $1.36 consensus and revenue of $1.61 billion, up 8.9% year over year. Analysts’ average rating is “Buy,” with an average price target of $154.25.
• Company insiders sold 186,912 shares worth about $23.4 million over the past 90 days. Encompass Health also announced a quarterly dividend of $0.21 per share.

Alps Advisors Inc. trimmed its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 10.7% in the 3rd quarter, according to its most recent filing with the SEC. The institutional investor owned 136,685 shares of the company's stock after selling 16,446 shares during the quarter. Alps Advisors Inc. owned about 0.14% of Encompass Health worth $16,606,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. Transamerica Financial Advisors LLC purchased a new stake in shares of Encompass Health during the 2nd quarter valued at about $29,000. Toth Financial Advisory Corp bought a new position in Encompass Health during the third quarter valued at approximately $38,000. Persistent Asset Partners Ltd purchased a new stake in Encompass Health in the second quarter worth approximately $36,000. Keating Financial Advisory Services Inc. purchased a new stake in Encompass Health in the second quarter worth approximately $39,000. Finally, Root Financial Partners LLC bought a new stake in Encompass Health in the 3rd quarter worth approximately $52,000. Hedge funds and other institutional investors own 97.25% of the company's stock.

Insider Buying and Selling at Encompass Health

In related news, CEO Mark Tarr sold 173,148 shares of the firm's stock in a transaction on Monday, August 10th. The shares were 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 trade represents a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP John Darby sold 8,906 shares of Encompass Health stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the sale, the executive vice president owned 75,041 shares in the company, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 186,912 shares of company stock valued at $23,434,845 over the last ninety days. 1.80% of the stock is currently owned by corporate insiders.

Encompass Health Price Performance

Shares of Encompass Health stock opened at $137.50 on Friday. The company has a market capitalization of $13.49 billion, a price-to-earnings ratio of 21.48, a PEG ratio of 2.40 and a beta of 0.83. The company has a quick ratio of 1.19, a current ratio of 1.09 and a debt-to-equity ratio of 0.73. The stock's 50-day simple moving average is $124.70 and its 200-day simple moving average is $110.93. Encompass Health Corporation has a 52 week low of $92.77 and a 52 week high of $143.36.

Encompass Health (NYSE:EHC - Get Free Report) last issued its earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.16. The company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Encompass Health had a return on equity of 18.35% and a net margin of 10.17%. The firm's quarterly revenue was up 8.9% on a year-over-year basis. During the same quarter last year, the company earned $1.23 EPS. As a group, analysts expect that Encompass Health Corporation will post 6.26 earnings per share 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 given a dividend of $0.21 per share. The ex-dividend date is Monday, January 4th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.6%. Encompass Health's dividend payout ratio is currently 13.12%.

Analysts Set New Price Targets

Several research firms have recently weighed in on EHC. Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, October 31st. Truist Financial reaffirmed a "buy" rating and issued a $156.00 price objective (up from $150.00) on shares of Encompass Health in a report on Friday, October 30th. Mizuho set a $155.00 price objective on Encompass Health in a report on Monday, November 2nd. TD Cowen upped their price objective on Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Friday, October 30th. Finally, Barclays increased their target price on Encompass Health from $144.00 to $151.00 and gave the company an "overweight" rating in a report on Thursday, October 29th. One equities research 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 stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $154.25.

About Encompass Health

Encompass Health Corporation is a U.S. healthcare provider focused on inpatient rehabilitation. The company operates rehabilitation hospitals that offer specialized care for people recovering from conditions such as strokes, brain and spinal cord injuries, orthopedic conditions, and other illnesses or injuries.

Its hospitals provide coordinated rehabilitation services, including physical, occupational, and speech therapy, alongside medical care. Encompass Health serves patients through facilities across the United States.

The company was previously known as HealthSouth and adopted the Encompass Health name in 2018.

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