Systematic Financial Management LP Has $46.78 Million Holdings in Encompass Health Corporation $EHC

Key Points

• Systematic Financial Management LP increased its Encompass Health stake by 3.6% in the fourth quarter, bringing its holdings to 440,752 shares worth about $46.78 million.
• Encompass Health posted a strong quarterly result, with EPS of $1.60 beating estimates and revenue of $1.59 billion topping expectations; revenue rose 9% year over year.
• Analyst sentiment remains generally positive, with an average “Buy” rating and a consensus price target of $145.29, even though Barclays recently lowered its target to $140.

Systematic Financial Management LP grew its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 3.6% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 440,752 shares of the company's stock after purchasing an additional 15,462 shares during the period. Encompass Health comprises approximately 1.1% of Systematic Financial Management LP's investment portfolio, making the stock its 19th biggest holding. Systematic Financial Management LP owned approximately 0.44% of Encompass Health worth $46,782,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Westside Investment Management Inc. lifted its stake in Encompass Health by 56.7% in the third quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock valued at $35,000 after acquiring an additional 101 shares during the last quarter. Assetmark Inc. lifted its stake in Encompass Health by 88.1% in the third quarter. Assetmark Inc. now owns 299 shares of the company's stock valued at $38,000 after acquiring an additional 140 shares during the last quarter. Root Financial Partners LLC acquired a new stake in Encompass Health in the third quarter valued at $39,000. WPG Advisers LLC lifted its stake in Encompass Health by 73.3% in the fourth quarter. WPG Advisers LLC now owns 324 shares of the company's stock valued at $34,000 after acquiring an additional 137 shares during the last quarter. Finally, Flagship Harbor Advisors LLC acquired a new stake in Encompass Health in the fourth quarter valued at $37,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

EHC has been the subject of a number of recent analyst reports. Barclays cut their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating for the company in a research note on Tuesday, May 5th. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Finally, Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $145.29.

Encompass Health Trading Up 0.6%

Shares of Encompass Health stock opened at $105.04 on Friday. The firm has a 50-day moving average of $102.86 and a 200-day moving average of $105.81. The stock has a market cap of $10.42 billion, a PE ratio of 17.54, a PEG ratio of 2.29 and a beta of 0.72. Encompass Health Corporation has a 52-week low of $92.77 and a 52-week high of $127.99. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $1.60 EPS for the quarter, topping the consensus estimate of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The company had revenue of $1.59 billion for the quarter, compared to analysts' expectations of $1.57 billion. During the same period last year, the firm earned $1.37 earnings per share. The business's revenue for the quarter was up 9.0% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, sell-side analysts forecast that Encompass Health Corporation will post 5.96 EPS for the current year.

Encompass Health Dividend Announcement

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

Insider Buying and Selling

In other news, Treasurer Edmund Fay sold 11,937 shares of the company's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the completion of the sale, the treasurer directly owned 89,325 shares in the company, valued at approximately $9,557,775. This represents a 11.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Patrick William Tuer sold 682 shares of the company's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $104.56, for a total value of $71,309.92. Following the sale, the executive vice president owned 24,755 shares of the company's stock, valued at approximately $2,588,382.80. The trade was a 2.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is currently owned by insiders.

Encompass Health 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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