Eventide Asset Management LLC Makes New $7.33 Million Investment in Encompass Health Corporation $EHC

Key Points

• Eventide Asset Management opened a new position in Encompass Health, buying 68,968 shares worth about $7.33 million in the fourth quarter.
• Encompass Health reported better-than-expected Q1 results, with EPS of $1.60 versus $1.51 expected and revenue of $1.59 billion versus $1.57 billion expected, while revenue rose 9% year over year.
• The company declared a quarterly dividend of $0.19 per share and continues to attract bullish analyst coverage, with a consensus Buy rating and average target price of $143.86.

Eventide Asset Management LLC bought a new position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 68,968 shares of the company's stock, valued at approximately $7,330,000. Eventide Asset Management LLC owned 0.07% of Encompass Health at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. grew its position in Encompass Health by 3,059,159.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock worth $402,640,000 after buying an additional 3,793,358 shares during the period. Alliancebernstein L.P. grew its position in Encompass Health by 23.4% during the third quarter. Alliancebernstein L.P. now owns 2,515,878 shares of the company's stock worth $319,567,000 after buying an additional 476,564 shares during the period. Geode Capital Management LLC grew its position in Encompass Health by 7.6% during the fourth quarter. Geode Capital Management LLC now owns 1,946,134 shares of the company's stock worth $206,605,000 after buying an additional 137,892 shares during the period. Dimensional Fund Advisors LP grew its position in Encompass Health by 0.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,624,137 shares of the company's stock worth $172,396,000 after buying an additional 7,959 shares during the period. Finally, Raymond James Financial Inc. grew its position in Encompass Health by 34.8% during the third quarter. Raymond James Financial Inc. now owns 1,541,336 shares of the company's stock worth $195,780,000 after buying an additional 397,694 shares during the period. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Encompass Health Stock Performance

Shares of EHC opened at $101.49 on Monday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17. The company has a market capitalization of $10.07 billion, a price-to-earnings ratio of 16.94, a PEG ratio of 2.21 and a beta of 0.72. Encompass Health Corporation has a 1 year low of $92.77 and a 1 year high of $127.99. The company's 50 day simple moving average is $104.31 and its 200 day simple moving average is $104.59.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, topping analysts' consensus estimates of $1.51 by $0.09. The company had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. Encompass Health's revenue was up 9.0% on a year-over-year basis. During the same quarter last year, the firm posted $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, sell-side analysts predict that Encompass Health Corporation will post 5.97 EPS for the current year.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be paid a dividend of $0.19 per share. The ex-dividend date of this dividend is Wednesday, July 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.7%. Encompass Health's dividend payout ratio (DPR) is currently 12.69%.

Wall Street Analyst Weigh In

Several research analysts have weighed in on EHC shares. Leerink Partners set a $152.00 target price on shares of Encompass Health in a research report on Friday, May 22nd. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Barclays reduced their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a report on Tuesday, May 5th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Encompass Health in a report on Monday, June 8th. Finally, TD Cowen assumed coverage on shares of Encompass Health in a report on Thursday, May 28th. They issued a "buy" rating and a $125.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Encompass Health has a consensus rating of "Buy" and an average target price of $143.86.

Insiders Place Their Bets

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $104.56, for a total transaction of $71,309.92. Following the transaction, the executive vice president owned 24,755 shares of the company's stock, valued at $2,588,382.80. This trade represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 1.80% of the stock is currently owned by corporate insiders.

Encompass Health Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.

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