Engineers Gate Manager LP Sells 16,849 Shares of Encompass Health Corporation $EHC

Key Points

• Engineers Gate Manager LP cut its Encompass Health stake by 38.5%, selling 16,849 shares and retaining 26,953 shares valued at approximately $2.7 million. Institutional investors collectively own 97.25% of the company.
• Encompass Health exceeded quarterly expectations, reporting $1.55 in earnings per share and $1.60 billion in revenue, with revenue up 9.6% year over year. The company also raised its quarterly dividend from $0.19 to $0.21 per share.
• Analysts remain bullish, giving the stock a consensus “Buy” rating and an average price target of $146.83 versus its reported price of $122.69. However, company insiders sold roughly 186,912 shares worth $23.4 million over the past three months.

Engineers Gate Manager LP lowered its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 38.5% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 26,953 shares of the company's stock after selling 16,849 shares during the quarter. Engineers Gate Manager LP's holdings in Encompass Health were worth $2,724,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Transamerica Financial Advisors LLC bought a new position in shares of Encompass Health in the second quarter valued at about $29,000. Persistent Asset Partners Ltd bought a new stake in Encompass Health during the 2nd quarter worth about $36,000. Keating Financial Advisory Services Inc. acquired a new stake in Encompass Health in the 2nd quarter valued at about $39,000. Assetmark Inc. raised its stake in shares of Encompass Health by 89.6% in the first quarter. Assetmark Inc. now owns 455 shares of the company's stock worth $44,000 after acquiring an additional 215 shares during the last quarter. Finally, Covestor Ltd raised its stake in shares of Encompass Health by 24.4% in the fourth quarter. Covestor Ltd now owns 540 shares of the company's stock worth $57,000 after acquiring an additional 106 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Encompass Health Stock Up 0.8%

Shares of NYSE EHC opened at $122.69 on Tuesday. Encompass Health Corporation has a 1 year low of $92.77 and a 1 year high of $127.99. The firm's 50-day moving average is $117.45 and its 200-day moving average is $108.17. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. The firm has a market capitalization of $12.10 billion, a PE ratio of 19.98, a price-to-earnings-growth ratio of 2.46 and a beta of 0.75.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $1.57 billion. During the same period in the previous year, the firm posted $1.40 earnings per share. Encompass Health's revenue for the quarter 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 expect that Encompass Health Corporation will post 6.08 EPS for the current year.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be given a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, October 1st. This is a positive change from Encompass Health's previous quarterly dividend of $0.19. Encompass Health's dividend payout ratio is presently 13.68%.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. TD Cowen increased their price target on shares of Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Monday, August 10th. Weiss Ratings upgraded shares of Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, August 12th. Leerink Partners set a $152.00 price objective on Encompass Health in a report on Friday, May 22nd. UBS Group lifted their target price on Encompass Health from $150.00 to $155.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Finally, Barclays boosted their target price on Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. 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 data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $146.83.

Insiders Place Their Bets

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

About Encompass Health

Encompass Health Corporation NYSE: EHC is a provider of post-acute healthcare services in the United States. The company operates inpatient rehabilitation hospitals that care for patients recovering from illness, injury, surgery or other medical conditions requiring intensive rehabilitation.

Its rehabilitation programs commonly serve patients recovering from strokes, brain and spinal cord injuries, neurological disorders, cardiac and pulmonary conditions, hip fractures, amputations and other orthopedic conditions.

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