Geode Capital Management LLC Purchases 137,892 Shares of Encompass Health Corporation $EHC

Key Points

• Geode Capital Management increased its stake in Encompass Health by 7.6% in the fourth quarter, adding 137,892 shares and bringing its holdings to 1.95 million shares worth about $206.6 million.
• Institutional ownership remains heavy, with several other large investors also boosting positions and institutions collectively owning 97.25% of the company.
• Encompass Health posted better-than-expected Q1 results, with EPS of $1.60 and revenue of $1.59 billion, while analysts currently rate the stock a consensus Buy with an average price target of $142.75.

Geode Capital Management LLC lifted its position in Encompass Health Corporation (NYSE:EHC - Free Report) by 7.6% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 1,946,134 shares of the company's stock after purchasing an additional 137,892 shares during the quarter. Geode Capital Management LLC owned 1.93% of Encompass Health worth $206,605,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in the company. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Encompass Health by 3,059,159.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock worth $402,640,000 after purchasing an additional 3,793,358 shares during the last quarter. Alliancebernstein L.P. grew its holdings in shares of Encompass Health by 23.4% in the 3rd quarter. Alliancebernstein L.P. now owns 2,515,878 shares of the company's stock worth $319,567,000 after purchasing an additional 476,564 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Encompass Health by 0.5% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,616,178 shares of the company's stock worth $205,279,000 after purchasing an additional 7,349 shares during the last quarter. Raymond James Financial Inc. grew its holdings in shares of Encompass Health by 34.8% in the 3rd quarter. Raymond James Financial Inc. now owns 1,541,336 shares of the company's stock worth $195,780,000 after purchasing an additional 397,694 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in shares of Encompass Health by 5.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,410,335 shares of the company's stock worth $179,141,000 after purchasing an additional 70,387 shares during the last quarter. Institutional investors own 97.25% of the company's stock.

Insider Transactions at Encompass Health

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of the company's stock in a transaction dated 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 directly owned 24,755 shares in the company, valued at approximately $2,588,382.80. This represents a 2.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Treasurer Edmund Fay sold 11,937 shares of the stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the completion of the transaction, the treasurer owned 89,325 shares in the company, valued at $9,557,775. This represents a 11.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.80% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently weighed in on EHC. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. TD Cowen assumed coverage on shares of Encompass Health in a research report on Thursday, May 28th. They set a "buy" rating and a $125.00 price target on the stock. Finally, 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 research report on Tuesday, May 5th. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $142.75.

Encompass Health Stock Down 1.2%

Shares of NYSE EHC opened at $101.53 on Wednesday. The firm's 50-day simple moving average is $103.40 and its 200 day simple moving average is $105.28. The company has a market cap of $10.07 billion, a price-to-earnings ratio of 16.95, a price-to-earnings-growth ratio of 2.24 and a beta of 0.72. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.76. Encompass Health Corporation has a 12-month low of $92.77 and a 12-month high of $127.99.

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 (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.09. The business 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%. The firm's quarterly revenue was up 9.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.37 EPS. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, research analysts expect that Encompass Health Corporation will post 5.96 earnings per share for the current fiscal year.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be given a dividend of $0.19 per share. The ex-dividend date 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 is presently 12.69%.

Encompass Health Company 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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