Hsbc Holdings PLC Increases Stock Position in Encompass Health Corporation $EHC

Key Points

• Hsbc Holdings PLC increased its stake in Encompass Health by 412.7% in the fourth quarter, ending with 276,194 shares worth about $29.6 million.
• Encompass Health’s latest quarterly results beat expectations, with EPS of $1.60 versus the $1.51 estimate and revenue of $1.59 billion, up 9% year over year.
• The company declared a quarterly dividend of $0.19 per share, while analysts currently view the stock as a Moderate Buy with a consensus price target of $143.86.

Hsbc Holdings PLC boosted its position in Encompass Health Corporation (NYSE:EHC - Free Report) by 412.7% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 276,194 shares of the company's stock after acquiring an additional 222,327 shares during the period. Hsbc Holdings PLC owned 0.28% of Encompass Health worth $29,606,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. WPG Advisers LLC grew its stake in shares of Encompass Health by 73.3% in the fourth quarter. WPG Advisers LLC now owns 324 shares of the company's stock worth $34,000 after purchasing an additional 137 shares during the last quarter. Flagship Harbor Advisors LLC bought a new stake in shares of Encompass Health in the 4th quarter worth approximately $37,000. Caitong International Asset Management Co. Ltd increased its stake in shares of Encompass Health by 36,200.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock valued at $46,000 after buying an additional 362 shares during the period. Aster Capital Management DIFC Ltd purchased a new position in shares of Encompass Health during the fourth quarter valued at approximately $55,000. Finally, Covestor Ltd raised its holdings in shares of Encompass Health by 24.4% during the fourth quarter. Covestor Ltd now owns 540 shares of the company's stock valued at $57,000 after acquiring an additional 106 shares in the last quarter. 97.25% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on EHC shares. Barclays cut their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a report on Tuesday, May 5th. TD Cowen initiated coverage on shares of Encompass Health in a report on Thursday, May 28th. They issued a "buy" rating and a $125.00 price objective for the company. Weiss Ratings lowered shares of Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, June 26th. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research note on Friday, May 22nd. Finally, Wall Street Zen upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $143.86.

Encompass Health Price Performance

Shares of NYSE EHC opened at $106.98 on Tuesday. The company has a 50 day simple moving average of $103.20 and a two-hundred day simple moving average of $103.39. Encompass Health Corporation has a fifty-two week low of $92.77 and a fifty-two week high of $127.99. The company has a market capitalization of $10.61 billion, a price-to-earnings ratio of 17.86, a P/E/G ratio of 2.32 and a beta of 0.74. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.09. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The company had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter in the prior year, the business posted $1.37 EPS. The firm's quarterly revenue was up 9.0% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Analysts expect that Encompass Health Corporation will post 5.97 EPS for the current fiscal year.

Encompass Health Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, July 1st. Encompass Health's dividend payout ratio is currently 12.69%.

Insider Buying and Selling at Encompass Health

In other news, EVP Patrick William Tuer sold 682 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $104.56, for a total transaction of $71,309.92. Following the completion of the transaction, the executive vice president directly owned 24,755 shares in the company, valued at $2,588,382.80. This trade represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.80% of the stock is owned by insiders.

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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