John G Ullman & Associates Inc. Increases Stake in Encompass Health Corporation (NYSE:EHC)

Key Points

• John G Ullman & Associates Inc. increased its stake in Encompass Health Corporation by 20.8% in the first quarter, now owning 29,050 shares worth approximately $2.94 million.
• Several analysts have recently raised their price targets for Encompass Health, with the consensus target now set at $131.50 and an overall rating of "Buy".
• Encompass Health recently announced a dividend increase to $0.19 per share, representing an annual yield of 0.71%, with a payout ratio of 15.70%.

John G Ullman & Associates Inc. lifted its stake in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 20.8% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 29,050 shares of the company's stock after purchasing an additional 5,000 shares during the period. John G Ullman & Associates Inc.'s holdings in Encompass Health were worth $2,942,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of EHC. T. Rowe Price Investment Management Inc. purchased a new position in Encompass Health in the fourth quarter valued at about $152,953,000. Norges Bank purchased a new position in Encompass Health in the fourth quarter valued at about $100,637,000. Farallon Capital Management LLC grew its stake in Encompass Health by 15,266.7% in the fourth quarter. Farallon Capital Management LLC now owns 461,000 shares of the company's stock valued at $42,573,000 after purchasing an additional 458,000 shares in the last quarter. AQR Capital Management LLC grew its stake in Encompass Health by 136.8% in the fourth quarter. AQR Capital Management LLC now owns 689,206 shares of the company's stock valued at $63,648,000 after purchasing an additional 398,154 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD grew its stake in Encompass Health by 22.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,610,669 shares of the company's stock valued at $148,746,000 after purchasing an additional 300,386 shares in the last quarter. 97.25% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on EHC. Truist Financial reiterated a "buy" rating and set a $135.00 price target (up previously from $116.00) on shares of Encompass Health in a research note on Monday, April 28th. Royal Bank Of Canada upped their price target on Encompass Health from $110.00 to $125.00 and gave the stock an "outperform" rating in a research note on Monday, April 28th. KeyCorp upped their price target on Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Stephens upgraded Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price target for the company in a research note on Thursday, June 5th. Finally, Wall Street Zen cut Encompass Health from a "strong-buy" rating to a "buy" rating in a research report on Friday, June 6th. Seven research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $131.50.

Encompass Health Price Performance

Shares of NYSE EHC traded up $0.40 during midday trading on Friday, reaching $107.53. The company's stock had a trading volume of 675,621 shares, compared to its average volume of 1,004,874. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.06. Encompass Health Corporation has a fifty-two week low of $82.74 and a fifty-two week high of $123.13. The business's 50 day moving average price is $117.99 and its two-hundred day moving average price is $107.40. The company has a market cap of $10.84 billion, a P/E ratio of 22.22, a P/E/G ratio of 2.17 and a beta of 0.88.

Encompass Health (NYSE:EHC - Get Free Report) last posted its earnings results on Thursday, April 24th. The company reported $1.37 earnings per share for the quarter, topping analysts' consensus estimates of $1.19 by $0.18. Encompass Health had a net margin of 8.97% and a return on equity of 17.63%. The firm had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.43 billion. During the same quarter in the previous year, the firm posted $1.12 earnings per share. The company's revenue was up 10.6% on a year-over-year basis. On average, analysts forecast that Encompass Health Corporation will post 4.8 EPS for the current fiscal year.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 1st will be issued a dividend of $0.19 per share. This is an increase from Encompass Health's previous quarterly dividend of $0.17. This represents a $0.76 dividend on an annualized basis and a yield of 0.71%. The ex-dividend date of this dividend is Wednesday, October 1st. Encompass Health's dividend payout ratio (DPR) is presently 15.70%.

Insiders Place Their Bets

In other news, insider Elissa Joy Charbonneau sold 4,279 shares of the stock in a transaction dated Tuesday, May 6th. The shares were sold at an average price of $116.61, for a total transaction of $498,974.19. Following the transaction, the insider owned 11,958 shares of the company's stock, valued at $1,394,422.38. This represents a 26.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John Patrick Darby sold 10,000 shares of the stock in a transaction dated Tuesday, April 29th. The stock was sold at an average price of $114.79, for a total transaction of $1,147,900.00. Following the transaction, the executive vice president directly owned 79,710 shares in the company, valued at $9,149,910.90. This trade represents a 11.15% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 132,663 shares of company stock worth $16,034,082. Company insiders own 2.00% of the company's stock.

Encompass Health 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.