Park Avenue Securities LLC Increases Stock Holdings in Encompass Health Corporation $EHC

Key Points

• Park Avenue Securities LLC increased its stake in Encompass Health Corporation by 28.5% during the 2nd quarter, now owning 9,153 shares worth approximately $1.12 million.
• Encompass Health reported earnings per share of $1.40, beating estimates by $0.20, and anticipates a fiscal year 2025 guidance range of 5.120-5.340 EPS.
• The company recently increased its quarterly dividend from $0.17 to $0.19, representing a yield of 0.6% and with a payout ratio of 13.31%.

Park Avenue Securities LLC raised its stake in Encompass Health Corporation (NYSE:EHC - Free Report) by 28.5% during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 9,153 shares of the company's stock after purchasing an additional 2,030 shares during the period. Park Avenue Securities LLC's holdings in Encompass Health were worth $1,122,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Nuveen LLC purchased a new position in Encompass Health in the 1st quarter valued at $50,665,000. T. Rowe Price Investment Management Inc. grew its position in Encompass Health by 25.6% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 2,080,918 shares of the company's stock valued at $210,756,000 after buying an additional 424,691 shares during the last quarter. Strs Ohio purchased a new position in Encompass Health in the 1st quarter valued at $34,364,000. American Century Companies Inc. grew its position in Encompass Health by 78.6% in the 1st quarter. American Century Companies Inc. now owns 723,169 shares of the company's stock valued at $73,243,000 after buying an additional 318,251 shares during the last quarter. Finally, Invesco Ltd. grew its position in Encompass Health by 5.1% in the 1st quarter. Invesco Ltd. now owns 5,818,783 shares of the company's stock valued at $589,326,000 after buying an additional 282,532 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Trading Up 0.9%

NYSE:EHC opened at $126.78 on Friday. The stock has a fifty day simple moving average of $119.60 and a 200-day simple moving average of $114.55. Encompass Health Corporation has a 52-week low of $87.85 and a 52-week high of $127.86. The company has a market capitalization of $12.77 billion, a PE ratio of 24.81, a price-to-earnings-growth ratio of 2.20 and a beta of 0.92. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Monday, August 4th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.20. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the previous year, the company posted $1.11 EPS. The firm's revenue for the quarter was up 12.0% on a year-over-year basis. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. On average, equities research analysts expect that Encompass Health Corporation will post 4.8 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Wednesday, October 1st. This is a positive change from Encompass Health's previous quarterly dividend of $0.17. Encompass Health's dividend payout ratio is presently 13.31%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. Stephens raised Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price for the company in a report on Thursday, June 5th. Bank of America raised their target price on Encompass Health from $145.00 to $160.00 and gave the company a "buy" rating in a report on Wednesday, September 10th. UBS Group raised their target price on Encompass Health from $130.00 to $140.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Truist Financial raised their target price on Encompass Health from $135.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 14th. Finally, Wall Street Zen downgraded Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. One analyst has rated the stock with a Strong Buy rating and seven have issued a Buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and an average price target of $138.43.

Insiders Place Their Bets

In related news, EVP Patrick William Tuer sold 1,020 shares of the business's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $123.59, for a total value of $126,061.80. Following the completion of the transaction, the executive vice president owned 18,846 shares of the company's stock, valued at approximately $2,329,177.14. The trade was a 5.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 2.00% of the company's stock.

Encompass Health Profile

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.

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