T. Rowe Price Investment Management Inc. Grows Stock Position in Encompass Health Corporation $EHC

Key Points

• T. Rowe Price Investment Management Inc. increased its stake in Encompass Health Corporation by 25.6%, now holding approximately 2.06% of the company's shares valued at $210.76 million.
• Encompass Health announced a quarterly dividend increase from $0.17 to $0.19, with a new dividend yield of 0.6% and a payout ratio of 13.31%.
• Analysts have raised their target prices for Encompass Health, with a consensus target of $134.00 and several firms rating the stock as a "buy" or "outperform."

T. Rowe Price Investment Management Inc. increased its position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 25.6% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,080,918 shares of the company's stock after acquiring an additional 424,691 shares during the quarter. T. Rowe Price Investment Management Inc. owned 2.06% of Encompass Health worth $210,756,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. OneDigital Investment Advisors LLC bought a new stake in shares of Encompass Health during the 1st quarter worth $263,000. GAMMA Investing LLC boosted its stake in Encompass Health by 21.5% during the 1st quarter. GAMMA Investing LLC now owns 2,366 shares of the company's stock valued at $240,000 after purchasing an additional 419 shares during the period. Sequoia Financial Advisors LLC boosted its position in shares of Encompass Health by 6.7% in the first quarter. Sequoia Financial Advisors LLC now owns 2,727 shares of the company's stock valued at $276,000 after acquiring an additional 172 shares during the period. Cambridge Investment Research Advisors Inc. boosted its position in shares of Encompass Health by 30.1% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 9,597 shares of the company's stock valued at $972,000 after acquiring an additional 2,218 shares during the period. Finally, Fifth Third Bancorp boosted its holdings in Encompass Health by 88.7% in the 1st quarter. Fifth Third Bancorp now owns 4,290 shares of the company's stock valued at $434,000 after purchasing an additional 2,017 shares during the period. Hedge funds and other institutional investors own 97.25% of the company's stock.

Encompass Health Stock Down 0.5%

NYSE:EHC traded down $0.67 during midday trading on Friday, reaching $122.76. 798,000 shares of the stock traded hands, compared to its average volume of 895,065. Encompass Health Corporation has a 12-month low of $87.85 and a 12-month high of $124.67. The stock has a market capitalization of $12.36 billion, a PE ratio of 24.02, a price-to-earnings-growth ratio of 2.15 and a beta of 0.86. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.06 and a current ratio of 1.06. The business has a 50-day moving average of $116.38 and a two-hundred day moving average of $110.32.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results on Monday, August 4th. The company reported $1.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.20 by $0.20. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The business had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the prior year, the firm earned $1.11 earnings per share. The company's revenue for the quarter was up 12.0% compared to the same quarter last year. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. On average, equities analysts forecast that Encompass Health Corporation will post 4.8 earnings per share for the current fiscal 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 paid a dividend of $0.19 per share. This is a positive change from Encompass Health's previous quarterly dividend of $0.17. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.6%. Encompass Health's dividend payout ratio (DPR) is currently 13.31%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Truist Financial boosted their target price on Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a research report on Thursday, August 14th. Royal Bank Of Canada lifted their target price on Encompass Health from $110.00 to $125.00 and gave the stock an "outperform" rating in a report on Monday, April 28th. Barclays increased their target price on shares of Encompass Health from $118.00 to $129.00 and gave the company an "overweight" rating in a report on Friday, April 25th. UBS Group boosted their price objective on shares of Encompass Health from $130.00 to $140.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Finally, Wall Street Zen lowered Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. One research analyst has rated the stock with a Strong Buy rating and six have given a Buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Buy" and a consensus target price of $134.00.

Encompass Health Company Profile

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.