Franklin Resources Inc. Sells 172,997 Shares of Encompass Health Corporation $EHC

Key Points

• Franklin Resources cut its Encompass Health stake by 16.1% in the fourth quarter, selling 172,997 shares and leaving it with 901,047 shares valued at about $95.6 million.
• Encompass Health reported better-than-expected Q1 results, with earnings of $1.60 per share and revenue of $1.59 billion, both above analyst estimates, while revenue rose 9% year over year.
• The company also declared a quarterly dividend of $0.19 per share, and analysts remain generally bullish with a consensus rating of Buy and a target price of $143.86.

Franklin Resources Inc. trimmed its stake in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 16.1% in the fourth quarter, according to the company in its most recent filing with the SEC. The firm owned 901,047 shares of the company's stock after selling 172,997 shares during the quarter. Franklin Resources Inc. owned about 0.90% of Encompass Health worth $95,637,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. WPG Advisers LLC lifted its position in shares of Encompass Health by 73.3% during the 4th quarter. WPG Advisers LLC now owns 324 shares of the company's stock worth $34,000 after buying an additional 137 shares during the last quarter. Flagship Harbor Advisors LLC bought a new stake in shares of Encompass Health during the 4th quarter worth $37,000. Assetmark Inc. lifted its position in shares of Encompass Health by 88.1% during the 3rd quarter. Assetmark Inc. now owns 299 shares of the company's stock worth $38,000 after buying an additional 140 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its position in shares of Encompass Health by 36,200.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock worth $46,000 after buying an additional 362 shares during the last quarter. Finally, Covestor Ltd lifted its position in shares of Encompass Health by 24.4% during the 4th quarter. Covestor Ltd now owns 540 shares of the company's stock worth $57,000 after buying an additional 106 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Encompass Health

In other news, EVP Patrick William Tuer sold 682 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $104.56, for a total value of $71,309.92. Following the completion of the sale, the executive vice president owned 24,755 shares of the company's stock, valued at approximately $2,588,382.80. This represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 1.80% of the company's stock.

Encompass Health Price Performance

Shares of EHC opened at $103.47 on Thursday. Encompass Health Corporation has a 12-month low of $92.77 and a 12-month high of $127.99. The business has a 50-day simple moving average of $104.11 and a two-hundred day simple moving average of $104.76. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.76. The stock has a market cap of $10.26 billion, a PE ratio of 17.27, a PEG ratio of 2.27 and a beta of 0.72.

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

Encompass Health Announces Dividend

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

Analyst Ratings Changes

Several brokerages recently weighed in on EHC. TD Cowen began coverage on Encompass Health in a research report on Thursday, May 28th. They set a "buy" rating and a $125.00 price objective for the company. Barclays dropped their price objective on Encompass Health from $153.00 to $140.00 and set an "overweight" rating for the company in a research report on Tuesday, May 5th. Weiss Ratings restated a "buy (b-)" rating on shares of Encompass Health in a research report on Monday. Wall Street Zen upgraded Encompass Health from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Finally, Leerink Partners set a $152.00 price objective on Encompass Health in a research report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $143.86.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.