The Manufacturers Life Insurance Company Takes $13.53 Million Position in Encompass Health Corporation $EHC

Key Points

• The Manufacturers Life Insurance Company acquired 133,874 Encompass Health shares worth approximately $13.53 million, while institutional investors collectively own 97.25% of the company.
• Analysts maintain a favorable outlook, with an overall “Buy” rating and a consensus price target of $148.71; however, Encompass Health’s CEO and an executive vice president recently sold shares.
• Encompass Health beat quarterly earnings and revenue expectations, reporting $1.55 EPS and $1.60 billion in revenue, while raising its quarterly dividend from $0.19 to $0.21 per share.

The Manufacturers Life Insurance Company acquired a new position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 133,874 shares of the company's stock, valued at approximately $13,532,000. The Manufacturers Life Insurance Company owned approximately 0.14% of Encompass Health at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of EHC. BlackRock Inc. acquired a new stake in Encompass Health during the 2nd quarter valued at $1,059,762,000. Northwestern Mutual Wealth Management Co. raised its holdings in Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock worth $402,640,000 after purchasing an additional 3,793,358 shares during the last quarter. Norges Bank bought a new stake in shares of Encompass Health during the fourth quarter worth approximately $133,221,000. William Blair Investment Management LLC acquired a new position in shares of Encompass Health in the 2nd quarter valued at $116,352,000. Finally, Price T Rowe Associates Inc. MD lifted its stake in Encompass Health by 24.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company's stock valued at $510,047,000 after buying an additional 948,202 shares during the period. Institutional investors own 97.25% of the company's stock.

Insider Buying and Selling at Encompass Health

In related news, EVP John Patrick Darby sold 8,906 shares of the company's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the transaction, the executive vice president directly owned 75,041 shares in the company, valued at $9,451,413.95. This represents a 10.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Mark J. Tarr sold 173,148 shares of the firm's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the sale, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.80% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have weighed in on EHC shares. Leerink Partners set a $152.00 target price on shares of Encompass Health in a report on Friday, May 22nd. Barclays upped their price target on Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a research report on Sunday, August 16th. Weiss Ratings upgraded shares of Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, August 12th. Finally, UBS Group upped their price objective on Encompass Health from $150.00 to $155.00 and gave the company a "buy" rating in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Encompass Health presently has an average rating of "Buy" and a consensus target price of $148.71.

Encompass Health Stock Performance

NYSE EHC opened at $120.98 on Friday. The company has a market capitalization of $11.93 billion, a P/E ratio of 19.70, a P/E/G ratio of 2.42 and a beta of 0.72. Encompass Health Corporation has a 12-month low of $92.77 and a 12-month high of $127.99. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.76. The firm has a 50-day moving average price of $113.20 and a two-hundred day moving average price of $107.18.

Encompass Health (NYSE:EHC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The firm had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.57 billion. During the same period in the previous year, the firm earned $1.40 EPS. The company's quarterly revenue was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Analysts anticipate that Encompass Health Corporation will post 6.08 earnings per share for the current year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be paid a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. This is a positive change from Encompass Health's previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health's payout ratio is 12.38%.

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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