Guided Capital Wealth Management LLC Cuts Stock Holdings in Encompass Health Corporation $EHC

Key Points

• Guided Capital Wealth Management LLC reduced its stake in Encompass Health Corporation by 10.0%, selling 2,067 shares, bringing its ownership down to 18,626 shares valued at approximately $2.28 million.
• The company reported strong quarterly earnings with an EPS of $1.40, exceeding analysts' expectations by $0.20, alongside a revenue increase of 12.0% year-over-year.
• Encompass Health announced an increase in its quarterly dividend from $0.17 to $0.19 per share, reflecting a positive change in its shareholder returns.

Guided Capital Wealth Management LLC reduced its stake in Encompass Health Corporation (NYSE:EHC - Free Report) by 10.0% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 18,626 shares of the company's stock after selling 2,067 shares during the period. Encompass Health makes up approximately 1.8% of Guided Capital Wealth Management LLC's investment portfolio, making the stock its 19th biggest position. Guided Capital Wealth Management LLC's holdings in Encompass Health were worth $2,284,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Exchange Traded Concepts LLC lifted its stake in Encompass Health by 1.9% during the second quarter. Exchange Traded Concepts LLC now owns 8,095 shares of the company's stock worth $993,000 after purchasing an additional 152 shares during the last quarter. Canandaigua National Bank & Trust Co. bought a new position in shares of Encompass Health in the 2nd quarter valued at $260,000. Parallel Advisors LLC lifted its stake in shares of Encompass Health by 12.2% in the 2nd quarter. Parallel Advisors LLC now owns 2,603 shares of the company's stock valued at $319,000 after acquiring an additional 284 shares during the last quarter. Voya Investment Management LLC lifted its stake in shares of Encompass Health by 5.0% in the 1st quarter. Voya Investment Management LLC now owns 15,854 shares of the company's stock valued at $1,606,000 after acquiring an additional 762 shares during the last quarter. Finally, Strs Ohio bought a new position in shares of Encompass Health in the 1st quarter valued at $34,364,000. 97.25% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Encompass Health news, EVP Patrick William Tuer sold 1,020 shares of the company's stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $123.59, for a total transaction of $126,061.80. Following the completion of the sale, the executive vice president directly owned 18,846 shares of the company's stock, valued at approximately $2,329,177.14. This represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.00% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently weighed in on EHC. Bank of America increased their price target on Encompass Health from $145.00 to $160.00 and gave the company a "buy" rating in a research note on Wednesday, September 10th. Wall Street Zen downgraded shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a research report on Friday, June 6th. UBS Group increased their price objective on shares of Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Truist Financial boosted their target price on shares of Encompass Health from $135.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 14th. Finally, KeyCorp increased their price target on Encompass Health from $135.00 to $140.00 and gave the stock an "overweight" rating in a report on Tuesday, September 16th. One investment analyst has rated the stock with a Strong Buy rating and seven have given a Buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Buy" and an average target price of $138.43.

Encompass Health Stock Down 1.1%

Shares of NYSE EHC traded down $1.39 during midday trading on Friday, hitting $123.94. The stock had a trading volume of 1,428,682 shares, compared to its average volume of 602,788. The business's 50 day moving average is $118.12 and its 200-day moving average is $113.71. The company has a market cap of $12.48 billion, a P/E ratio of 24.25, a PEG ratio of 2.17 and a beta of 0.92. Encompass Health Corporation has a 52 week low of $87.85 and a 52 week high of $127.15. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC - Get Free Report) last issued its earnings results on Monday, August 4th. The company reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.20. The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The business's revenue was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.11 earnings per share. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. As a group, analysts predict that Encompass Health Corporation will post 4.8 EPS for the current year.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 1st will be issued a dividend of $0.19 per share. This is an increase from Encompass Health's previous quarterly dividend of $0.17. This represents a $0.76 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Wednesday, October 1st. Encompass Health's dividend payout ratio is currently 13.31%.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.