Jefferies Financial Group Inc. Takes Position in Encompass Health Corporation (NYSE:EHC)

Key Points

• Jefferies Financial Group Inc. made a new investment of $274,000 in Encompass Health Corporation by acquiring 2,701 shares during the first quarter of the year.
• CEO Mark J. Tarr sold 118,384 shares, reducing his ownership by 18.34%, yet he still holds approximately $64 million in stock after the sale.
• Encompass Health announced a dividend increase to $0.19 per share, up from $0.17, which will be distributed to shareholders on October 15th.

Jefferies Financial Group Inc. bought 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 filing with the Securities & Exchange Commission. The firm bought 2,701 shares of the company's stock, valued at approximately $274,000.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in EHC. LPL Financial LLC grew its holdings in shares of Encompass Health by 8.8% during the 4th quarter. LPL Financial LLC now owns 35,558 shares of the company's stock valued at $3,284,000 after purchasing an additional 2,869 shares during the last quarter. Federated Hermes Inc. grew its position in shares of Encompass Health by 13.7% in the 4th quarter. Federated Hermes Inc. now owns 11,318 shares of the company's stock worth $1,045,000 after buying an additional 1,367 shares during the period. FMR LLC grew its position in shares of Encompass Health by 0.8% in the 4th quarter. FMR LLC now owns 1,973,846 shares of the company's stock worth $182,285,000 after buying an additional 15,831 shares during the period. Cerity Partners LLC boosted its stake in Encompass Health by 76.9% in the 4th quarter. Cerity Partners LLC now owns 5,837 shares of the company's stock worth $547,000 after purchasing an additional 2,537 shares in the last quarter. Finally, Bank of Montreal Can boosted its stake in Encompass Health by 11.1% in the 4th quarter. Bank of Montreal Can now owns 14,329 shares of the company's stock worth $1,323,000 after purchasing an additional 1,437 shares in the last quarter. Institutional investors own 97.25% of the company's stock.

Insiders Place Their Bets

In related news, CEO Mark J. Tarr sold 118,384 shares of the business's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $121.53, for a total value of $14,387,207.52. Following the sale, the chief executive officer owned 527,070 shares in the company, valued at approximately $64,054,817.10. The trade was a 18.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.10% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Truist Financial reaffirmed a "buy" rating and issued a $135.00 target price (up from $116.00) on shares of Encompass Health in a report on Monday, April 28th. Stephens upgraded shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price on the stock in a research note on Thursday, June 5th. Royal Bank Of Canada raised their target price on shares of Encompass Health from $110.00 to $125.00 and gave the stock an "outperform" rating in a research note on Monday, April 28th. UBS Group raised their target price on shares of Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Finally, KeyCorp raised their target price on shares of Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Seven equities 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, the stock presently has a consensus rating of "Buy" and an average target price of $133.17.

Encompass Health Price Performance

Shares of EHC stock traded up $1.19 during mid-day trading on Tuesday, hitting $118.63. The company had a trading volume of 555,965 shares, compared to its average volume of 824,731. Encompass Health Corporation has a 52-week low of $85.92 and a 52-week high of $123.13. The stock's 50 day moving average price is $116.29 and its 200-day moving average price is $109.00. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.06 and a quick ratio of 1.06. The company has a market capitalization of $11.95 billion, a P/E ratio of 23.21, a P/E/G ratio of 2.05 and a beta of 0.86.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results on Monday, August 4th. The company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.20 by $0.20. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the previous year, the firm earned $1.11 earnings per share. The company's quarterly revenue was up 12.0% compared to the same quarter last year. Equities research analysts forecast that Encompass Health Corporation will post 4.8 earnings per share for the current year.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be given a $0.19 dividend. This is a boost from Encompass Health's previous quarterly dividend of $0.17. This represents a $0.76 annualized dividend and a yield of 0.6%. The ex-dividend date is Wednesday, October 1st. Encompass Health's dividend payout ratio (DPR) is presently 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.