Encompass Health Corporation $EHC Stock Sold by Copeland Capital Management LLC

Key Points

• Copeland Capital Management reduced its Encompass Health stake by 16.6% in the third quarter, selling 141,738 shares and retaining 713,677 shares valued at approximately $86.7 million. Institutional investors collectively own 97.25% of EHC.
• Encompass Health reported quarterly EPS of $1.55, exceeding estimates of $1.48, while revenue rose 9.6% year over year to $1.60 billion. The company guided to fiscal 2026 EPS of $6.02–$6.25.
• The company increased its quarterly dividend from $0.19 to $0.21 per share, equivalent to a $0.84 annualized payout and a 0.7% yield. Analysts maintain a consensus “Buy” rating with an average price target of $148.50.

Copeland Capital Management LLC reduced its position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 16.6% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 713,677 shares of the company's stock after selling 141,738 shares during the period. Encompass Health makes up approximately 2.0% of Copeland Capital Management LLC's investment portfolio, making the stock its 4th biggest position. Copeland Capital Management LLC owned 0.72% of Encompass Health worth $86,705,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in EHC. BlackRock Inc. bought a new stake in shares of Encompass Health in the 2nd quarter valued at $1,059,762,000. William Blair Investment Management LLC purchased a new position in Encompass Health during the 2nd quarter worth $116,352,000. Bank of New York Mellon Corp bought a new stake in Encompass Health in the 2nd quarter worth about $81,676,000. Bank of America Corp DE purchased a new position in Encompass Health in the second quarter worth $79,660,000. Finally, Freestone Grove Partners LP purchased a new position in shares of Encompass Health in the 2nd quarter worth about $38,677,000. 97.25% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Encompass Health news, CEO Mark Tarr sold 173,148 shares of the business's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the transaction, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP John Darby sold 8,906 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the completion of the sale, the executive vice president directly owned 75,041 shares of the company's stock, valued at $9,451,413.95. The trade was a 10.61% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 186,912 shares of company stock valued at $23,434,845 in the last three months. 1.80% of the stock is currently owned by insiders.

Encompass Health Stock Performance

EHC opened at $124.45 on Wednesday. Encompass Health Corporation has a 1-year low of $92.77 and a 1-year high of $127.99. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. The firm has a market cap of $12.28 billion, a P/E ratio of 20.27, a PEG ratio of 2.52 and a beta of 0.74. The company has a 50 day simple moving average of $122.08 and a two-hundred day simple moving average of $111.03.

Encompass Health (NYSE:EHC - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The business had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.57 billion. During the same quarter in the previous year, the company earned $1.40 EPS. The business's quarterly revenue was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities analysts forecast that Encompass Health Corporation will post 6.08 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 Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.21 per share. This is an increase from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, October 1st. Encompass Health's payout ratio is 13.68%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. TD Cowen increased their target price on Encompass Health from $125.00 to $140.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a research note on Saturday, September 26th. Raymond James Financial set a $150.00 target price on shares of Encompass Health in a report on Monday, September 28th. Truist Financial lifted their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Finally, Weiss Ratings raised Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $148.50.

Encompass Health Profile

Encompass Health Corporation NYSE: EHC is a healthcare services company focused on inpatient rehabilitation. Through its network of rehabilitation hospitals, the company provides intensive medical and therapeutic care to patients recovering from conditions such as strokes, brain and spinal cord injuries, hip fractures, amputations, neurological disorders, and other disabling illnesses or injuries.

Its rehabilitation hospitals offer coordinated care from physicians, nurses, therapists, and other healthcare professionals.

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