Renaissance Technologies LLC Raises Stock Holdings in Encompass Health Corporation $EHC

Key Points

• Renaissance Technologies increased its Encompass Health stake by 288.6% in the first quarter, holding 265,000 shares valued at about $25.6 million. Institutional investors collectively own 97.25% of the company.
• Encompass Health beat quarterly estimates with $1.60 earnings per share on $1.59 billion in revenue, while revenue rose 9% year over year. The company also raised its quarterly dividend to $0.21 per share, representing a 0.7% yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $143.86, compared with shares trading at $113.79. Price targets range from $125 to $152, although some firms recently lowered their targets or downgraded the stock.

Renaissance Technologies LLC boosted its holdings in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 288.6% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 265,000 shares of the company's stock after acquiring an additional 196,800 shares during the quarter. Renaissance Technologies LLC owned 0.27% of Encompass Health worth $25,633,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Northwestern Mutual Wealth Management Co. grew its stake in Encompass Health by 3,059,159.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock worth $402,640,000 after acquiring an additional 3,793,358 shares in the last quarter. AlphaCore Capital LLC purchased a new stake in shares of Encompass Health in the fourth quarter valued at approximately $4,881,000. Sivik Global Healthcare LLC grew its stake in Encompass Health by 42.9% in the fourth quarter. Sivik Global Healthcare LLC now owns 50,000 shares of the company's stock worth $5,307,000 after purchasing an additional 15,000 shares in the last quarter. Allspring Global Investments Holdings LLC grew its stake in Encompass Health by 690.2% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 344,093 shares of the company's stock worth $36,601,000 after purchasing an additional 300,546 shares in the last quarter. Finally, Systematic Financial Management LP increased its holdings in Encompass Health by 3.6% during the 4th quarter. Systematic Financial Management LP now owns 440,752 shares of the company's stock worth $46,782,000 after purchasing an additional 15,462 shares during the period. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Price Performance

Shares of EHC stock opened at $113.79 on Thursday. The stock's 50-day moving average is $105.50 and its 200 day moving average is $103.94. Encompass Health Corporation has a 1-year low of $92.77 and a 1-year high of $127.99. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.17 and a quick ratio of 1.17. The company has a market cap of $11.29 billion, a P/E ratio of 19.00, a PEG ratio of 2.53 and a beta of 0.74.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.60 EPS for the quarter, beating the consensus estimate of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The business had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the firm posted $1.37 earnings per share. The company's quarterly revenue was up 9.0% on a year-over-year basis. Research analysts predict that Encompass Health Corporation will post 5.96 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 Thursday, October 15th. Shareholders of record on Thursday, October 1st will be paid a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.7%. This is a positive change from Encompass Health's previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. Encompass Health's payout ratio is 12.69%.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on EHC. 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 for the company. Weiss Ratings lowered shares of Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, June 26th. Wall Street Zen upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Barclays reduced their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating for the company in a report on Tuesday, May 5th. Finally, Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $143.86.

Insider Activity

In other news, EVP Patrick William Tuer sold 682 shares of the company's stock in a transaction 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 transaction, the executive vice president directly owned 24,755 shares of the company's stock, valued at approximately $2,588,382.80. This represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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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