Norges Bank Acquires New Holdings in Encompass Health Corporation $EHC

Key Points

• Norges Bank opened a new position in Encompass Health during the fourth quarter, buying 1,255,148 shares valued at about $133.2 million and ending with 1.25% ownership.
• Encompass Health reported solid quarterly results, with EPS of $1.60 and revenue of $1.59 billion, both above analyst expectations; revenue also rose 9% year over year.
• Analysts remain generally positive on the stock, with a consensus rating of Buy and an average price target of $143.86, while the shares recently traded around $100.02.

Norges Bank bought a new position in Encompass Health Corporation (NYSE:EHC - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund bought 1,255,148 shares of the company's stock, valued at approximately $133,221,000. Norges Bank owned 1.25% of Encompass Health at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. EP Wealth Advisors LLC grew its position in Encompass Health by 2.4% during the second quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company's stock valued at $453,000 after buying an additional 88 shares during the period. Allworth Financial LP raised its position in Encompass Health by 14.7% in the third quarter. Allworth Financial LP now owns 701 shares of the company's stock worth $89,000 after acquiring an additional 90 shares during the period. Westside Investment Management Inc. boosted its stake in shares of Encompass Health by 56.7% during the 3rd quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock worth $35,000 after acquiring an additional 101 shares during the last quarter. Leuthold Group LLC grew its position in shares of Encompass Health by 0.3% during the 4th quarter. Leuthold Group LLC now owns 31,168 shares of the company's stock valued at $3,308,000 after acquiring an additional 104 shares during the period. Finally, Covestor Ltd grew its position in shares of Encompass Health by 24.4% during the 4th quarter. Covestor Ltd now owns 540 shares of the company's stock valued at $57,000 after acquiring an additional 106 shares during the period. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. TD Cowen initiated coverage on Encompass Health in a report on Thursday, May 28th. They issued a "buy" rating and a $125.00 target price on the stock. Leerink Partners set a $152.00 price target on Encompass Health in a research report on Friday, May 22nd. Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Finally, Barclays cut their price objective on Encompass Health from $153.00 to $140.00 and set an "overweight" rating for the company in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Encompass Health presently has an average rating of "Buy" and a consensus price target of $143.86.

Encompass Health Stock Down 3.1%

EHC opened at $100.02 on Friday. The stock has a market cap of $9.92 billion, a price-to-earnings ratio of 16.70, a price-to-earnings-growth ratio of 2.25 and a beta of 0.72. 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 firm's fifty day moving average is $103.68 and its 200 day moving average is $105.01. 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 issued its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.51 by $0.09. The business had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.Encompass Health's revenue for the quarter was up 9.0% compared to the same quarter last year. During the same quarter in the prior 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 forecast that Encompass Health Corporation will post 5.97 earnings per share 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. Shareholders of record on Wednesday, July 1st will be issued a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Wednesday, July 1st. Encompass Health's dividend payout ratio (DPR) is 12.69%.

Insider Activity at Encompass Health

In related news, EVP Patrick William Tuer sold 682 shares of the firm's stock in a transaction on Monday, May 11th. The shares were 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 directly owned 24,755 shares of the company's stock, valued at approximately $2,588,382.80. This trade represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, 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 completion of the sale, the treasurer 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 disclosure for this sale is available in the SEC filing. Company insiders own 1.80% of the company's stock.

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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