King Luther Capital Management Corp Makes New $4.19 Million Investment in Encompass Health Corporation $EHC

Key Points

• King Luther Capital Management opened a new position in Encompass Health, buying 39,429 shares valued at about $4.19 million in the fourth quarter.
• Institutional ownership remains very high, with hedge funds and other investors holding 97.25% of Encompass Health’s stock, though several smaller funds also added to their positions.
• The company reported better-than-expected earnings for Q1, raised full-year guidance, and analysts remain generally bullish with a Buy consensus and a target price of $142.75.

King Luther Capital Management Corp acquired a new position in Encompass Health Corporation (NYSE:EHC - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 39,429 shares of the company's stock, valued at approximately $4,185,000.

Several other hedge funds have also bought and sold shares of EHC. Westside Investment Management Inc. grew its position in Encompass Health by 56.7% during the third quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock valued at $35,000 after buying an additional 101 shares during the period. Assetmark Inc. grew its position in Encompass Health by 88.1% during the third quarter. Assetmark Inc. now owns 299 shares of the company's stock valued at $38,000 after buying an additional 140 shares during the period. WPG Advisers LLC grew its position in Encompass Health by 73.3% during the fourth quarter. WPG Advisers LLC now owns 324 shares of the company's stock valued at $34,000 after buying an additional 137 shares during the period. Flagship Harbor Advisors LLC acquired a new stake in Encompass Health during the fourth quarter valued at $37,000. Finally, Caitong International Asset Management Co. Ltd grew its position in 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. Hedge funds and other institutional investors own 97.25% of the company's stock.

Insider Activity at Encompass Health

In other Encompass Health news, Treasurer Edmund Fay sold 11,937 shares of Encompass Health stock in a transaction on Monday, March 9th. The shares were sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the sale, the treasurer owned 89,325 shares of the company's stock, valued at $9,557,775. The trade was a 11.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Patrick William Tuer sold 682 shares of Encompass Health 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 sale, the executive vice president directly owned 24,755 shares in the company, valued at approximately $2,588,382.80. This trade represents a 2.68% decrease in their position. The SEC filing for this sale provides additional information. 1.80% of the stock is currently owned by insiders.

Encompass Health Stock Performance

NYSE:EHC opened at $105.45 on Friday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17. The company has a fifty day moving average of $103.18 and a two-hundred day moving average of $105.44. The stock has a market capitalization of $10.46 billion, a PE ratio of 17.61, a P/E/G ratio of 2.27 and a beta of 0.72. Encompass Health Corporation has a fifty-two week low of $92.77 and a fifty-two week high of $127.99.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.60 EPS 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 during the quarter, compared to analyst estimates of $1.57 billion. During the same period in the previous year, the business earned $1.37 EPS. Encompass Health's quarterly revenue was up 9.0% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, research analysts forecast that Encompass Health Corporation will post 5.96 earnings per share for the current fiscal year.

Encompass Health Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be paid a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 0.7%. The ex-dividend date is Wednesday, July 1st. Encompass Health's payout ratio is 12.69%.

Wall Street Analysts Forecast Growth

EHC has been the topic of a number of recent analyst reports. Leerink Partners set a $152.00 price target on Encompass Health in a research report on Friday, May 22nd. Wall Street Zen upgraded Encompass Health from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. TD Cowen initiated coverage on Encompass Health in a research report on Thursday. They set a "buy" rating and a $125.00 price target on the stock. Finally, Barclays lowered their price target on Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $142.75.

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.

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