Northwestern Mutual Wealth Management Co. Purchases 3,793,358 Shares of Encompass Health Corporation $EHC

Key Points

• Northwestern Mutual Wealth Management massively increased its stake in Encompass Health, buying 3.79 million shares in the fourth quarter and ending with about 3.77% ownership valued at roughly $402.6 million.
• Encompass Health reported strong quarterly results, with EPS of $1.60 topping estimates and revenue of $1.59 billion, up 9% year over year.
• The company declared a quarterly dividend of $0.19 per share, while analysts currently rate the stock a consensus Buy with an average price target of $144.17.

Northwestern Mutual Wealth Management Co. lifted its position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 3,059,159.7% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 3,793,482 shares of the company's stock after purchasing an additional 3,793,358 shares during the quarter. Northwestern Mutual Wealth Management Co. owned about 3.77% of Encompass Health worth $402,640,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently made changes to their positions in EHC. First Horizon Corp bought a new stake in shares of Encompass Health during the third quarter valued at approximately $34,000. WPG Advisers LLC boosted its position in shares of 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 purchasing an additional 137 shares in the last quarter. Westside Investment Management Inc. boosted its position in shares of 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 purchasing an additional 101 shares in the last quarter. Flagship Harbor Advisors LLC bought a new stake in shares of Encompass Health during the fourth quarter valued at approximately $37,000. Finally, Assetmark Inc. boosted its position in shares of 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 purchasing an additional 140 shares in the last quarter. 97.25% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Encompass Health

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

Encompass Health Trading Down 0.6%

Encompass Health stock opened at $106.64 on Friday. 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 business's fifty day simple moving average is $102.94 and its two-hundred day simple moving average is $106.40. Encompass Health Corporation has a 12 month low of $92.77 and a 12 month high of $127.99. The company has a market capitalization of $10.58 billion, a price-to-earnings ratio of 17.80, a price-to-earnings-growth ratio of 2.34 and a beta of 0.72.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results 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 business had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. During the same period in the previous year, the company posted $1.37 earnings per share. The company's revenue for the quarter was up 9.0% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, equities analysts predict that Encompass Health Corporation will post 5.97 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Barclays dropped 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. Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $144.17.

Encompass Health 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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