HB Wealth Management LLC Invests $339,000 in Encompass Health Corporation (NYSE:EHC)

Key Points

• HB Wealth Management LLC has acquired a new position in Encompass Health Corporation, purchasing 3,346 shares valued at approximately $339,000.
• Encompass Health recently announced a dividend increase from $0.17 to $0.19, providing a 0.7% dividend yield on an annualized basis.
• Multiple analysts have upgraded their ratings and price targets for Encompass Health, with the average target price now at $131.50.

HB Wealth Management LLC acquired a new position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 3,346 shares of the company's stock, valued at approximately $339,000.

A number of other institutional investors also recently made changes to their positions in EHC. Invesco Ltd. boosted its stake in Encompass Health by 3.3% in the 4th quarter. Invesco Ltd. now owns 5,536,251 shares of the company's stock valued at $511,273,000 after purchasing an additional 176,135 shares during the period. FMR LLC boosted its holdings in Encompass Health by 0.8% in the 4th quarter. FMR LLC now owns 1,973,846 shares of the company's stock valued at $182,285,000 after purchasing an additional 15,831 shares during the period. Geode Capital Management LLC boosted its holdings in Encompass Health by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 1,679,774 shares of the company's stock valued at $155,176,000 after purchasing an additional 6,164 shares during the period. T. Rowe Price Investment Management Inc. bought a new stake in shares of Encompass Health in the fourth quarter valued at approximately $152,953,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in shares of Encompass Health by 22.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,610,669 shares of the company's stock valued at $148,746,000 after buying an additional 300,386 shares during the period. Institutional investors own 97.25% of the company's stock.

Insider Transactions at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 118,384 shares of the company's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $121.53, for a total value of $14,387,207.52. Following the completion of the transaction, the chief executive officer owned 527,070 shares in the company, valued at $64,054,817.10. This represents a 18.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Elissa Joy Charbonneau sold 4,279 shares of the company's stock in a transaction on Tuesday, May 6th. The shares were sold at an average price of $116.61, for a total value of $498,974.19. Following the completion of the transaction, the insider owned 11,958 shares of the company's stock, valued at $1,394,422.38. This trade represents a 26.35% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 2.10% of the company's stock.

Analyst Upgrades and Downgrades

EHC has been the subject of several recent analyst reports. Truist Financial reaffirmed a "buy" rating and set a $135.00 price objective (up previously from $116.00) on shares of Encompass Health in a research report on Monday, April 28th. UBS Group upped their target price on Encompass Health from $117.00 to $130.00 and gave the stock a "buy" rating in a research note on Monday, April 28th. Wall Street Zen cut Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. KeyCorp upped their price objective on Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 27th. Finally, Stephens upgraded Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price objective for the company in a research report on Thursday, June 5th. Seven research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Encompass Health presently has an average rating of "Buy" and a consensus price target of $131.50.

Encompass Health Stock Up 0.9%

EHC traded up $0.93 during midday trading on Monday, hitting $109.46. The company had a trading volume of 1,772,468 shares, compared to its average volume of 1,095,366. Encompass Health Corporation has a 52 week low of $82.74 and a 52 week high of $123.13. The company has a market capitalization of $11.03 billion, a price-to-earnings ratio of 22.62, a PEG ratio of 2.20 and a beta of 0.86. The stock's 50 day moving average price is $116.88 and its 200 day moving average price is $108.16. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.81.

Encompass Health (NYSE:EHC - Get Free Report) last issued 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 17.63% and a net margin of 8.97%. Encompass Health's quarterly revenue was up 12.0% on a year-over-year basis. During the same period last year, the business posted $1.11 earnings per share. On average, research analysts anticipate that Encompass Health Corporation will post 4.8 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 1st will be given a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend 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 currently 14.05%.

Encompass Health Profile

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.