New Age Alpha Advisors LLC Reduces Position in Encompass Health Corporation $EHC

Key Points

• New Age Alpha Advisors LLC reduced its stake in Encompass Health by 42.2% in the fourth quarter, selling 16,831 shares and leaving it with 23,023 shares valued at about $2.44 million.
• Other institutional investors were active in EHC, with several boosting holdings; overall, 97.25% of the stock is owned by hedge funds and other institutional investors.
• Encompass Health reported strong quarterly results, beating earnings and revenue estimates, and it also announced a $0.19 quarterly dividend payable on July 15.

New Age Alpha Advisors LLC cut its holdings in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 42.2% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 23,023 shares of the company's stock after selling 16,831 shares during the quarter. New Age Alpha Advisors LLC's holdings in Encompass Health were worth $2,444,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in EHC. Thrivent Financial for Lutherans increased its position in shares of Encompass Health by 57.8% during the third quarter. Thrivent Financial for Lutherans now owns 1,194,859 shares of the company's stock valued at $151,544,000 after buying an additional 437,464 shares during the period. AlphaCore Capital LLC bought a new stake in shares of Encompass Health during the fourth quarter valued at about $4,881,000. Tudor Investment Corp ET AL increased its position in shares of Encompass Health by 155.3% during the third quarter. Tudor Investment Corp ET AL now owns 210,712 shares of the company's stock valued at $26,765,000 after buying an additional 128,191 shares during the period. JPMorgan Chase & Co. increased its position in shares of Encompass Health by 5.3% during the third quarter. JPMorgan Chase & Co. now owns 1,410,335 shares of the company's stock valued at $179,141,000 after buying an additional 70,387 shares during the period. Finally, AlphaQuest LLC increased its position in shares of Encompass Health by 170.9% during the third quarter. AlphaQuest LLC now owns 29,916 shares of the company's stock valued at $3,800,000 after buying an additional 18,874 shares during the period. 97.25% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Encompass Health

In related news, Treasurer Edmund Fay sold 11,937 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $107.00, for a total value of $1,277,259.00. Following the transaction, the treasurer directly owned 89,325 shares in the company, valued at approximately $9,557,775. This represents a 11.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Patrick William Tuer sold 682 shares of the company's stock in a transaction that occurred 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 owned 24,755 shares in the company, valued at approximately $2,588,382.80. This trade represents a 2.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is currently owned by corporate insiders.

Encompass Health Stock Up 0.1%

EHC stock opened at $105.07 on Wednesday. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. The company's 50 day moving average is $103.05 and its 200 day moving average is $105.58. The stock has a market cap of $10.42 billion, a price-to-earnings ratio of 17.54, a price-to-earnings-growth ratio of 2.29 and a beta of 0.72. Encompass Health Corporation has a 1-year low of $92.77 and a 1-year 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 earnings per share 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 analysts' expectations of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. Encompass Health's revenue for the quarter was up 9.0% compared to the same quarter last year. During the same period in the prior year, the business earned $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Sell-side analysts predict that Encompass Health Corporation will post 5.96 EPS for the current fiscal year.

Encompass Health Announces Dividend

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

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on EHC. Wall Street Zen upgraded Encompass Health from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Leerink Partners set a $152.00 price target on Encompass Health in a research report on Friday. Finally, Barclays decreased 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 investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $145.29.

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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