Strs Ohio Lowers Holdings in Encompass Health Corporation $EHC

Key Points

• Strs Ohio cut its Encompass Health stake sharply in the first quarter, selling 81,640 shares and reducing its position by 67.1% to 39,950 shares worth about $3.86 million.
• Institutional ownership remains high, with hedge funds and other institutional investors holding 97.25% of Encompass Health shares, while several firms recently increased or initiated positions.
• Encompass Health reported solid results and shareholder returns, beating earnings and revenue estimates in its latest quarter and announcing a $0.19 quarterly dividend, yielding about 0.7% annually.

Strs Ohio lowered its stake in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 67.1% in the first quarter, according to its most recent 13F filing with the SEC. The fund owned 39,950 shares of the company's stock after selling 81,640 shares during the period. Strs Ohio's holdings in Encompass Health were worth $3,864,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Royal Bank of Canada raised its position in Encompass Health by 21.5% during the first quarter. Royal Bank of Canada now owns 88,470 shares of the company's stock valued at $8,960,000 after acquiring an additional 15,677 shares in the last quarter. Millennium Management LLC boosted its position in Encompass Health by 38.4% in the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company's stock worth $9,338,000 after purchasing an additional 25,574 shares in the last quarter. Caxton Associates LLP purchased a new stake in Encompass Health in the 1st quarter worth approximately $259,000. Walleye Capital LLC grew its stake in shares of Encompass Health by 667.6% during the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company's stock worth $800,000 after purchasing an additional 7,671 shares during the period. Finally, Gamco Investors INC. ET AL acquired a new stake in shares of Encompass Health during the 2nd quarter worth approximately $588,000. Hedge funds and other institutional investors own 97.25% of the company's stock.

Insider Transactions at Encompass Health

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of Encompass Health stock in a transaction on Monday, May 11th. The shares were sold at an average price of $104.56, for a total transaction of $71,309.92. Following the sale, the executive vice president owned 24,755 shares of the company's stock, valued at $2,588,382.80. The trade was a 2.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.80% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on EHC. Leerink Partners set a $152.00 target price on shares of Encompass Health in a research note on Friday, May 22nd. TD Cowen assumed coverage on shares of Encompass Health in a research report on Thursday, May 28th. They set a "buy" rating and a $125.00 price target on the stock. Wall Street Zen upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. 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. Finally, Barclays dropped their target price on Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 5th. 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. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $143.86.

Encompass Health Price Performance

NYSE:EHC traded up $2.94 during trading hours on Tuesday, reaching $109.93. 24,983 shares of the company were exchanged, compared to its average volume of 1,098,868. The firm has a market cap of $10.91 billion, a PE ratio of 18.31, a price-to-earnings-growth ratio of 2.32 and a beta of 0.74. The stock's 50-day moving average is $103.20 and its 200-day moving average is $103.39. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month high of $127.99.

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

Encompass Health Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be issued a $0.19 dividend. The ex-dividend date is Wednesday, July 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.7%. Encompass Health's dividend payout ratio (DPR) is presently 12.69%.

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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