Keeler Thomas Management LLC Makes New $3.71 Million Investment in Encompass Health Corporation $EHC

Key Points

• Keeler Thomas Management LLC acquired 36,694 shares of Encompass Health worth approximately $3.71 million, while institutional investors collectively own 97.25% of the company.
• Analysts maintain a favorable outlook, with a consensus “Buy” rating and average price target of $148.71, above the stock’s reported $120.51 opening price.
• Encompass Health exceeded quarterly expectations with $1.55 EPS and $1.60 billion in revenue, while raising its quarterly dividend from $0.19 to $0.21 per share.

Keeler Thomas Management LLC purchased a new position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 36,694 shares of the company's stock, valued at approximately $3,709,000. Encompass Health makes up about 1.3% of Keeler Thomas Management LLC's holdings, making the stock its 17th biggest holding.

Several other institutional investors and hedge funds have also modified their holdings of the company. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock worth $402,640,000 after purchasing an additional 3,793,358 shares during the period. AlphaCore Capital LLC purchased a new stake in shares of Encompass Health in the fourth quarter valued at $4,881,000. Ancora Advisors LLC acquired a new position in Encompass Health in the second quarter valued at $10,639,000. Systematic Financial Management LP increased its stake in Encompass Health by 3.6% in the fourth quarter. Systematic Financial Management LP now owns 440,752 shares of the company's stock valued at $46,782,000 after purchasing an additional 15,462 shares during the last quarter. Finally, Trillium Asset Management LLC lifted its position in Encompass Health by 5.7% during the fourth quarter. Trillium Asset Management LLC now owns 217,734 shares of the company's stock worth $23,424,000 after buying an additional 11,793 shares during the period. Hedge funds and other institutional investors own 97.25% of the company's stock.

Analysts Set New Price Targets

Several research firms have commented on EHC. TD Cowen lifted their price target on Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a report on Monday, August 10th. Barclays increased their price target on shares of Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. Leerink Partners set a $152.00 price target on shares of Encompass Health in a report on Friday, May 22nd. Truist Financial boosted their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Finally, Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a research report on Sunday, August 16th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average target price of $148.71.

Insider Activity

In other Encompass Health news, EVP John Patrick Darby sold 8,906 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Mark J. Tarr sold 173,148 shares of the company's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the sale, the chief executive officer directly owned 267,814 shares of the company's stock, valued at $33,602,622.58. The trade was a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 1.80% of the company's stock.

Encompass Health Trading Down 0.3%

NYSE EHC opened at $120.51 on Tuesday. The firm has a market capitalization of $11.89 billion, a price-to-earnings ratio of 19.63, a PEG ratio of 2.45 and a beta of 0.72. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. Encompass Health Corporation has a one year low of $92.77 and a one year high of $127.99. The company's 50 day moving average price is $113.64 and its 200 day moving average price is $107.27.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The company had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same quarter in the prior year, the business earned $1.40 earnings per share. The business's quarterly revenue was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, sell-side analysts predict that Encompass Health Corporation will post 6.08 EPS for the current year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be given a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.7%. This is a boost from Encompass Health's previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health's dividend payout ratio is 12.38%.

About Encompass Health

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source