Royal Bank of Canada Reduces Stock Position in Encompass Health Corporation $EHC

Key Points

• Royal Bank of Canada cut its Encompass Health stake by 23.8% in the first quarter, selling 24,593 shares and retaining 78,697 shares valued at approximately $7.6 million. Institutional investors collectively own 97.25% of the company.
• Encompass Health reported quarterly earnings of $1.55 per share, exceeding estimates of $1.48, while revenue rose 9.6% year over year to $1.60 billion. The company issued fiscal 2026 EPS guidance of $6.02 to $6.25.
• The company raised its quarterly dividend from $0.19 to $0.21 per share, equivalent to an annualized dividend of $0.84 and a 0.7% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $148.71.

Royal Bank of Canada reduced its stake in Encompass Health Corporation (NYSE:EHC - Free Report) by 23.8% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 78,697 shares of the company's stock after selling 24,593 shares during the period. Royal Bank of Canada owned approximately 0.08% of Encompass Health worth $7,612,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in EHC. WPG Advisers LLC boosted its stake in Encompass Health by 73.3% in the 4th quarter. WPG Advisers LLC now owns 324 shares of the company's stock worth $34,000 after purchasing an additional 137 shares during the period. Flagship Harbor Advisors LLC bought a new stake in shares of Encompass Health during the fourth quarter valued at about $37,000. Assetmark Inc. lifted its holdings in shares of Encompass Health by 89.6% in the first quarter. Assetmark Inc. now owns 455 shares of the company's stock worth $44,000 after buying an additional 215 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its position in shares of Encompass Health by 36,200.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock valued at $46,000 after acquiring an additional 362 shares during the period. Finally, Aster Capital Management DIFC Ltd purchased a new position in Encompass Health during the fourth quarter valued at approximately $55,000. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Trading Up 0.4%

Shares of EHC opened at $125.78 on Tuesday. Encompass Health Corporation has a fifty-two week low of $92.77 and a fifty-two week high of $127.99. The firm has a market cap of $12.48 billion, a price-to-earnings ratio of 20.49, a PEG ratio of 2.52 and a beta of 0.72. The firm has a 50 day moving average price of $107.37 and a 200-day moving average price of $104.81. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.19.

Encompass Health (NYSE:EHC - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, topping analysts' consensus estimates of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The company had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.57 billion. During the same quarter last year, the company earned $1.40 EPS. The firm's revenue was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, equities research analysts forecast that Encompass Health Corporation will post 6.07 earnings per share for the current year.

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a $0.21 dividend. This is a boost from Encompass Health's previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health's dividend payout ratio is presently 12.38%.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Leerink Partners set a $152.00 target price on shares of Encompass Health in a report on Friday, May 22nd. Wall Street Zen lowered shares of Encompass Health from a "buy" rating to a "hold" rating in a research report on Saturday. TD Cowen upped their price target on shares of Encompass Health from $125.00 to $140.00 and gave the stock a "buy" rating in a report on Monday. Barclays lifted their price objective on Encompass Health from $140.00 to $144.00 and gave the company an "overweight" rating in a research note on Thursday. Finally, Truist Financial boosted their target price on Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Encompass Health currently has a consensus rating of "Moderate Buy" and an average target price of $148.71.

About Encompass Health

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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