SG Americas Securities LLC Increases Stake in Encompass Health Corporation $EHC

Key Points

• SG Americas Securities LLC increased its Encompass Health stake by 21.8% in the first quarter, ending with 107,288 shares valued at about $10.4 million.
• Encompass Health reported better-than-expected quarterly results, with EPS of $1.60 versus $1.51 expected and revenue of $1.59 billion versus $1.57 billion expected, while revenue rose 9.0% year over year.
• Analysts remain broadly bullish on the stock, with a consensus Buy rating and an average price target of $143.86; the company also announced a quarterly dividend of $0.19 per share.

SG Americas Securities LLC increased its stake in Encompass Health Corporation (NYSE:EHC - Free Report) by 21.8% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 107,288 shares of the company's stock after acquiring an additional 19,234 shares during the period. SG Americas Securities LLC owned approximately 0.11% of Encompass Health worth $10,378,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. WPG Advisers LLC raised its stake in Encompass Health by 73.3% during the fourth 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 purchased a new position in shares of Encompass Health in the 4th quarter worth $37,000. Caitong International Asset Management Co. Ltd boosted its holdings in 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 last quarter. Aster Capital Management DIFC Ltd purchased a new stake in Encompass Health during the fourth quarter valued at about $55,000. Finally, Covestor Ltd increased its stake in Encompass Health by 24.4% during the fourth quarter. Covestor Ltd now owns 540 shares of the company's stock worth $57,000 after acquiring an additional 106 shares during the last quarter. Institutional investors and hedge funds own 97.25% of the company's stock.

Insider Activity

In related news, EVP Patrick William Tuer sold 682 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $104.56, for a total value of $71,309.92. Following the transaction, the executive vice president owned 24,755 shares in the company, valued at approximately $2,588,382.80. The trade was a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 1.80% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on EHC. Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. TD Cowen initiated coverage on shares of Encompass Health in a research report on Thursday, May 28th. They set a "buy" rating and a $125.00 target price for the company. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. Barclays dropped their price objective on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating for the company in a research report on Tuesday, May 5th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Encompass Health in a report on Monday, June 8th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, Encompass Health has a consensus rating of "Buy" and an average target price of $143.86.

Encompass Health Stock Up 1.6%

Shares of NYSE:EHC opened at $101.33 on Friday. The company has a market capitalization of $10.05 billion, a price-to-earnings ratio of 16.92, a price-to-earnings-growth ratio of 2.17 and a beta of 0.72. The company has a 50 day moving average of $103.25 and a two-hundred day moving average of $103.60. Encompass Health Corporation has a 52-week low of $92.77 and a 52-week high of $127.99. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.09. The business had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The business's quarterly revenue was up 9.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, analysts forecast that Encompass Health Corporation will post 5.97 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be paid a dividend of $0.19 per share. The ex-dividend date is Wednesday, July 1st. This represents a $0.76 annualized dividend and a dividend yield of 0.8%. Encompass Health's dividend payout ratio (DPR) is currently 12.69%.

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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