Sumitomo Mitsui Trust Group Inc. Grows Stake in Encompass Health Corporation $EHC

Key Points

• Sumitomo Mitsui Trust Group increased its stake in Encompass Health by 32.6% in Q4 to 1,010,608 shares—about 1.0% of the company valued at roughly $107.3 million.
• Insider selling: CEO Mark J. Tarr sold 150,000 shares for about $16.7 million (a 28.46% reduction in his position), and the treasurer also sold shares, leaving insiders with 2.10% ownership.
• Operational and financial update: Encompass Health beat Q4 EPS estimates ($1.46 vs. $1.29), reported revenue up 9.9% year-over-year, set FY2026 EPS guidance of $5.81–$6.10, and carries a consensus analyst target of $143.29.

Sumitomo Mitsui Trust Group Inc. grew its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 32.6% in the 4th quarter, according to the company in its most recent filing with the SEC. The firm owned 1,010,608 shares of the company's stock after buying an additional 248,296 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 1.00% of Encompass Health worth $107,266,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. Thrivent Financial for Lutherans lifted its holdings in Encompass Health by 57.8% in the 3rd quarter. Thrivent Financial for Lutherans now owns 1,194,859 shares of the company's stock worth $151,544,000 after buying an additional 437,464 shares during the period. Ethic Inc. purchased a new stake in Encompass Health in the 3rd quarter worth approximately $1,272,000. Jennison Associates LLC lifted its holdings in Encompass Health by 12.8% in the 3rd quarter. Jennison Associates LLC now owns 894,511 shares of the company's stock worth $113,621,000 after buying an additional 101,274 shares during the period. Tudor Investment Corp ET AL lifted its holdings in Encompass Health by 155.3% in the 3rd quarter. Tudor Investment Corp ET AL now owns 210,712 shares of the company's stock worth $26,765,000 after buying an additional 128,191 shares during the period. Finally, AlphaQuest LLC lifted its holdings in Encompass Health by 170.9% in the 3rd quarter. AlphaQuest LLC now owns 29,916 shares of the company's stock worth $3,800,000 after buying an additional 18,874 shares during the period. Hedge funds and other institutional investors own 97.25% of the company's stock.

Insider Buying and Selling

In related news, CEO Mark J. Tarr sold 150,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following the completion of the transaction, the chief executive officer owned 377,070 shares of the company's stock, valued at $42,096,094.80. This trade represents a 28.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Treasurer Edmund Fay sold 11,937 shares of the firm's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $107.00, for a total value of $1,277,259.00. Following the transaction, the treasurer directly owned 89,325 shares of the company's stock, valued at approximately $9,557,775. This trade represents a 11.79% decrease in their position. The disclosure for this sale is available in the SEC filing. 2.10% of the stock is owned by company insiders.

Encompass Health Trading Up 0.4%

EHC opened at $107.66 on Tuesday. The stock has a market cap of $10.70 billion, a PE ratio of 19.43, a PEG ratio of 2.06 and a beta of 0.75. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.76. The business has a 50 day moving average of $103.79 and a 200-day moving average of $109.34. Encompass Health Corporation has a 52 week low of $92.77 and a 52 week high of $127.99.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results on Thursday, February 5th. The company reported $1.46 EPS for the quarter, beating analysts' consensus estimates of $1.29 by $0.17. The company had revenue of $3.09 billion during the quarter, compared to analysts' expectations of $1.54 billion. Encompass Health had a return on equity of 18.20% and a net margin of 9.54%.The firm's revenue for the quarter was up 9.9% compared to the same quarter last year. During the same quarter last year, the business posted $1.17 EPS. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. Equities research analysts predict that Encompass Health Corporation will post 4.8 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st will be given a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Wednesday, April 1st. Encompass Health's dividend payout ratio (DPR) is 13.72%.

Analysts Set New Price Targets

Several research firms have weighed in on EHC. Wall Street Zen cut Encompass Health from a "buy" rating to a "hold" rating in a report on Saturday. Barclays raised their target price on Encompass Health from $150.00 to $153.00 and gave the company an "overweight" rating in a research note on Friday, February 6th. Two investment analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $143.29.

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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