Systematic Financial Management LP Sells 2,849 Shares of Encompass Health Corporation $EHC

Key Points

• Systematic Financial Management LP reduced its stake in Encompass Health Corporation by 0.6%, now holding approximately 461,446 shares worth around $46.74 million, representing 1.3% of its investment portfolio.
• Encompass Health's stock received multiple rating upgrades from analysts, with the average target price rising to $134.00, indicating strong buy interest following positive earnings results.
• The company announced an increase in its quarterly dividend from $0.17 to $0.19, with the next payout scheduled for October 15th, reflecting a current dividend yield of 0.6%.

Systematic Financial Management LP reduced its position in Encompass Health Corporation (NYSE:EHC - Free Report) by 0.6% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 461,446 shares of the company's stock after selling 2,849 shares during the period. Encompass Health comprises 1.3% of Systematic Financial Management LP's holdings, making the stock its 11th largest position. Systematic Financial Management LP owned about 0.46% of Encompass Health worth $46,735,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of EHC. T. Rowe Price Investment Management Inc. acquired a new stake in Encompass Health in the 4th quarter valued at about $152,953,000. Nuveen LLC bought a new position in Encompass Health in the 1st quarter valued at about $50,665,000. Farallon Capital Management LLC raised its holdings in Encompass Health by 15,266.7% in the 4th quarter. Farallon Capital Management LLC now owns 461,000 shares of the company's stock valued at $42,573,000 after acquiring an additional 458,000 shares during the period. AQR Capital Management LLC raised its holdings in Encompass Health by 136.8% in the 4th quarter. AQR Capital Management LLC now owns 689,206 shares of the company's stock valued at $63,648,000 after acquiring an additional 398,154 shares during the period. Finally, American Century Companies Inc. raised its holdings in Encompass Health by 78.6% in the 1st quarter. American Century Companies Inc. now owns 723,169 shares of the company's stock valued at $73,243,000 after acquiring an additional 318,251 shares during the period. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Royal Bank Of Canada increased their price target on shares of Encompass Health from $110.00 to $125.00 and gave the company an "outperform" rating in a report on Monday, April 28th. KeyCorp increased their price target on shares of Encompass Health from $122.00 to $135.00 and gave the company an "overweight" rating in a report on Tuesday, May 27th. UBS Group increased their price target on shares of Encompass Health from $130.00 to $140.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Wall Street Zen cut shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. Finally, Stephens raised shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price target on the stock in a report on Thursday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating and six have given a Buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $134.00.

Encompass Health Stock Performance

Shares of EHC traded down $0.7480 during mid-day trading on Monday, hitting $122.0820. 692,324 shares of the company's stock were exchanged, compared to its average volume of 901,184. Encompass Health Corporation has a 52 week low of $87.85 and a 52 week high of $124.67. The stock's 50-day simple moving average is $116.41 and its 200-day simple moving average is $110.56. The firm has a market cap of $12.30 billion, a price-to-earnings ratio of 23.89, a price-to-earnings-growth ratio of 2.15 and a beta of 0.86. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Monday, August 4th. The company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.20 by $0.20. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The company had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.43 billion. During the same period last year, the firm earned $1.11 earnings per share. The business's revenue for the quarter was up 12.0% on a year-over-year basis. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. On average, equities research analysts expect that Encompass Health Corporation will post 4.8 EPS for the current year.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st will be issued a dividend of $0.19 per share. This is a boost from Encompass Health's previous quarterly dividend of $0.17. This represents a $0.76 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Wednesday, October 1st. Encompass Health's payout ratio is 13.31%.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.