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

Several other large investors also recently modified their holdings of EHC. Nuveen LLC bought a new stake in Encompass Health during the first quarter valued at about $50,665,000. T. Rowe Price Investment Management Inc. grew its stake in shares of Encompass Health by 25.6% during the first quarter. T. Rowe Price Investment Management Inc. now owns 2,080,918 shares of the company's stock valued at $210,756,000 after buying an additional 424,691 shares during the last quarter. Strs Ohio bought a new position in shares of Encompass Health during the first quarter valued at approximately $34,364,000. American Century Companies Inc. grew its stake in shares of Encompass Health by 78.6% during the first quarter. American Century Companies Inc. now owns 723,169 shares of the company's stock valued at $73,243,000 after buying an additional 318,251 shares during the last quarter. Finally, Invesco Ltd. grew its stake in Encompass Health by 5.1% in the first quarter. Invesco Ltd. now owns 5,818,783 shares of the company's stock worth $589,326,000 after purchasing an additional 282,532 shares in the last quarter. Institutional investors own 97.25% of the company's stock.

Encompass Health Price Performance

Shares of NYSE:EHC traded up $2.06 during trading on Monday, reaching $126.12. 626,298 shares of the company's stock traded hands, compared to its average volume of 634,322. Encompass Health Corporation has a fifty-two week low of $87.85 and a fifty-two 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. The firm has a market cap of $12.70 billion, a PE ratio of 24.68, a P/E/G ratio of 2.17 and a beta of 0.92. The company has a 50-day simple moving average of $118.25 and a 200-day simple moving average of $113.99.

Encompass Health (NYSE:EHC - Get Free Report) last posted its earnings results on Monday, August 4th. The company reported $1.40 EPS for the quarter, beating analysts' consensus estimates of $1.20 by $0.20. Encompass Health had a return on equity of 17.83% and a net margin of 9.22%.The firm had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.43 billion. During the same period last year, the firm earned $1.11 EPS. The company's quarterly revenue was up 12.0% on a year-over-year basis. 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 earnings per share for the current year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.6%. The ex-dividend date is Wednesday, October 1st. This is a positive change from Encompass Health's previous quarterly dividend of $0.17. Encompass Health's payout ratio is presently 13.31%.

Insider Transactions at Encompass Health

In related news, EVP Patrick William Tuer sold 1,020 shares of Encompass Health stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $123.59, for a total value of $126,061.80. Following the sale, the executive vice president directly owned 18,846 shares in the company, valued at approximately $2,329,177.14. The trade was a 5.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 2.10% of the company's stock.

Wall Street Analyst Weigh In

EHC has been the topic of several research analyst reports. UBS Group increased their price objective on Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Truist Financial upped their target price on Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a report on Thursday, August 14th. Wall Street Zen lowered Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. KeyCorp upped their target price on Encompass Health from $135.00 to $140.00 and gave the stock an "overweight" rating in a report on Tuesday, September 16th. Finally, Bank of America upped their target price on Encompass Health from $145.00 to $160.00 and gave the stock a "buy" rating in a report on Wednesday, September 10th. One analyst has rated the stock with a Strong Buy rating and seven have assigned a Buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $138.43.

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.