Price T Rowe Associates Inc. MD Increases Holdings in Encompass Health Corporation $EHC

Key Points

• Price T Rowe Associates Inc. MD increased its holdings in Encompass Health Corporation by 13.1%, acquiring an additional 211,707 shares during Q1, bringing its total ownership to over 1.8 million shares, valued at approximately $184.57 million.
• Encompass Health announced a quarterly dividend increase to $0.19 per share, up from $0.17, reflecting a positive adjustment for investors with a dividend yield of 0.6%.
• The company reported strong quarterly earnings with an EPS of $1.40, exceeding forecasts, and a 12.0% revenue increase year-over-year, prompting analysts to adjust price objectives for the stock.

Price T Rowe Associates Inc. MD lifted its position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 13.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,822,376 shares of the company's stock after acquiring an additional 211,707 shares during the period. Price T Rowe Associates Inc. MD owned approximately 1.81% of Encompass Health worth $184,571,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently added to or reduced their stakes in the company. Colonial Trust Co SC purchased a new stake in shares of Encompass Health during the fourth quarter valued at $29,000. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in Encompass Health by 749.0% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 416 shares of the company's stock valued at $42,000 after purchasing an additional 367 shares during the period. Arlington Trust Co LLC boosted its holdings in Encompass Health by 22.9% in the first quarter. Arlington Trust Co LLC now owns 671 shares of the company's stock worth $68,000 after purchasing an additional 125 shares during the last quarter. Johnson Financial Group Inc. bought a new stake in Encompass Health in the 4th quarter worth approximately $72,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of Encompass Health by 19.0% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 720 shares of the company's stock valued at $73,000 after buying an additional 115 shares during the period. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Price Performance

Shares of EHC stock traded down $1.90 on Friday, hitting $121.55. 341,437 shares of the stock traded hands, compared to its average volume of 811,766. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.06 and a quick ratio of 1.06. Encompass Health Corporation has a 52 week low of $87.85 and a 52 week high of $124.67. The firm has a 50 day simple moving average of $116.61 and a two-hundred day simple moving average of $110.90. The firm has a market cap of $12.24 billion, a price-to-earnings ratio of 23.79, a PEG ratio of 2.16 and a beta of 0.86.

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

Encompass Health Increases Dividend

The business 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 dividend of $0.19 per share. 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. This represents a $0.76 annualized dividend and a yield of 0.6%. Encompass Health's dividend payout ratio is 14.87%.

Analyst Ratings Changes

EHC has been the subject of several research analyst reports. KeyCorp lifted their price objective on Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a report on Tuesday, May 27th. Wall Street Zen lowered shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a research report on Friday, June 6th. Stephens upgraded shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price for the company in a research report on Thursday, June 5th. Truist Financial increased their price target on shares of Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a research report on Thursday, August 14th. Finally, UBS Group boosted their price objective on shares of Encompass Health from $130.00 to $140.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating and six have given a Buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $134.00.

Insider Transactions at Encompass Health

In related news, EVP Patrick William Tuer sold 1,020 shares of the business's stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $123.59, for a total value of $126,061.80. Following the sale, the executive vice president directly owned 18,846 shares in the company, valued at approximately $2,329,177.14. The trade was a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate 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.