Legal & General Group Plc Sells 30,221 Shares of Encompass Health Corporation $EHC

Key Points

• Legal & General Group Plc reduced its Encompass Health stake by 16.1% in the fourth quarter, selling 30,221 shares and ending with 157,600 shares worth about $16.7 million.
• Despite some portfolio trimming, institutional ownership remains very high at 97.25%, and several other hedge funds also increased or initiated positions in EHC.
• Encompass Health reported strong quarterly results, with EPS of $1.60 and revenue of $1.59 billion, both above estimates, while analysts now largely rate the stock a Buy with an average target price of $142.75.

Legal & General Group Plc trimmed its stake in Encompass Health Corporation (NYSE:EHC - Free Report) by 16.1% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 157,600 shares of the company's stock after selling 30,221 shares during the quarter. Legal & General Group Plc owned 0.16% of Encompass Health worth $16,728,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in EHC. WPG Advisers LLC boosted its holdings in 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 acquiring an additional 137 shares in the last quarter. Westside Investment Management Inc. boosted its holdings in Encompass Health by 56.7% in the third quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock worth $35,000 after acquiring an additional 101 shares in the last quarter. Flagship Harbor Advisors LLC bought a new stake in Encompass Health in the fourth quarter worth $37,000. Assetmark Inc. raised its stake in shares of Encompass Health by 88.1% in the third quarter. Assetmark Inc. now owns 299 shares of the company's stock worth $38,000 after purchasing an additional 140 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd raised its stake in shares of Encompass Health by 36,200.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock worth $46,000 after purchasing an additional 362 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

Analysts Set New Price Targets

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

Insider Buying and Selling at Encompass Health

In other Encompass Health news, Treasurer Edmund Fay sold 11,937 shares of the stock in a transaction on Monday, March 9th. The stock was 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 approximately $9,557,775. This trade represents a 11.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 value of $71,309.92. Following the completion of the sale, the executive vice president directly owned 24,755 shares of the company's stock, valued at $2,588,382.80. The trade was 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 company insiders.

Encompass Health Trading Down 3.1%

Shares of NYSE EHC opened at $102.60 on Tuesday. 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 business's 50 day moving average price is $103.40 and its 200-day moving average price is $105.28. 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 cap of $10.18 billion, a price-to-earnings ratio of 17.13, a PEG ratio of 2.31 and a beta of 0.72.

Encompass Health (NYSE:EHC - Get Free Report) last released 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. The company had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.Encompass Health's quarterly revenue was up 9.0% on a year-over-year basis. During the same period last year, the business posted $1.37 EPS. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, sell-side analysts expect that Encompass Health Corporation will post 5.96 earnings per share for the current year.

Encompass Health Announces Dividend

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

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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