Freestone Grove Partners LP Invests $38.68 Million in Encompass Health Corporation $EHC

Key Points

• Freestone Grove Partners purchased 382,640 Encompass Health shares worth approximately $38.7 million, while institutional investors collectively owned 97.25% of the company.
• Analysts remain broadly bullish: Encompass Health has an average “Buy” rating and a $148.71 price target, with several firms recently raising their targets.
• The company reported quarterly EPS of $1.55 and revenue of $1.60 billion, up 9.6% year over year, and increased its quarterly dividend to $0.21 per share. However, CEO Mark J. Tarr sold $21.7 million worth of shares, reducing his position by 39.27%.

Freestone Grove Partners LP purchased a new stake in Encompass Health Corporation (NYSE:EHC - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 382,640 shares of the company's stock, valued at approximately $38,677,000. Freestone Grove Partners LP owned about 0.39% of Encompass Health at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Royal Bank of Canada increased its stake in Encompass Health by 21.5% in the first quarter. Royal Bank of Canada now owns 88,470 shares of the company's stock valued at $8,960,000 after purchasing an additional 15,677 shares in the last quarter. Millennium Management LLC boosted its position in shares of Encompass Health by 38.4% during the first quarter. Millennium Management LLC now owns 92,197 shares of the company's stock worth $9,338,000 after purchasing an additional 25,574 shares in the last quarter. Caxton Associates LLP bought a new position in shares of Encompass Health during the first quarter worth $259,000. Walleye Capital LLC grew its holdings in shares of Encompass Health by 667.6% in the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company's stock valued at $800,000 after buying an additional 7,671 shares during the period. Finally, Gamco Investors INC. ET AL bought a new stake in shares of Encompass Health in the 2nd quarter valued at $588,000. Institutional investors own 97.25% of the company's stock.

Analyst Upgrades and Downgrades

EHC has been the topic of several research analyst reports. Truist Financial raised their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Barclays increased their price target on Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Leerink Partners set a $152.00 price target on Encompass Health in a research report on Friday, May 22nd. TD Cowen lifted their price objective on Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a report on Monday, August 10th. Finally, Weiss Ratings upgraded Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, August 12th. 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 stock. Based on data from MarketBeat, the company currently has an average rating of "Buy" and an average price target of $148.71.

Insider Transactions at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the completion of the transaction, the chief executive officer owned 267,814 shares of the company's stock, valued at $33,602,622.58. This represents a 39.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP John Patrick Darby sold 8,906 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the transaction, the executive vice president directly owned 75,041 shares of the company's stock, valued at $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is currently owned by company insiders.

Encompass Health News Summary

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $6.03 from $5.96, FY2027 to $6.42 from $6.35, and FY2028 to $7.18 from $7.16. It also increased estimates for Q1 2027, Q2 2027, Q3 2027, and Q2 2028, signaling improving confidence in EHC’s medium- and long-term earnings trajectory.
• Positive Sentiment: Encompass Health’s facility expansion, including its North Carolina pipeline, could support 6%–8% multi-year discharge growth. That potential provides a fundamental catalyst for the stock by increasing future patient capacity and revenue. How EHC’s Capacity Expansion Fuels a Multi-Year Growth Runway
• Positive Sentiment: The company’s latest reported quarter also showed healthy operating momentum: adjusted earnings of $1.55 per share exceeded estimates, revenue reached $1.60 billion, and sales increased 9.6% year over year. Full-year 2026 guidance remains $6.02–$6.25 EPS.
• Neutral Sentiment: Zacks’ momentum analysis continues to characterize EHC as a long-term momentum candidate, although the assessment is based on quantitative style factors rather than a new company announcement. Why Encompass Health Is a Top Momentum Stock for the Long-Term
• Negative Sentiment: Zacks trimmed near-term estimates for Q3 2026 EPS to $1.35 from $1.36 and Q4 2026 EPS to $1.53 from $1.55. These modest cuts may limit immediate upside, though they were outweighed by the stronger longer-term revisions.

Encompass Health Trading Up 0.6%

Shares of NYSE:EHC opened at $120.86 on Thursday. The firm has a market cap of $11.92 billion, a price-to-earnings ratio of 19.68, a PEG ratio of 2.43 and a beta of 0.72. Encompass Health Corporation has a 12 month low of $92.77 and a 12 month high of $127.99. The company's fifty day simple moving average is $112.30 and its 200 day simple moving average is $106.98. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC - Get Free Report) last announced its 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 firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the business earned $1.40 EPS. The company'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. As a group, research analysts forecast that Encompass Health Corporation will post 6.08 EPS for the current fiscal year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a dividend of $0.21 per share. The ex-dividend date is Thursday, October 1st. This is a boost from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health's dividend payout ratio is 12.38%.

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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