TimesSquare Capital Management LLC Invests $38.22 Million in Encompass Health Corporation $EHC

Key Points

• TimesSquare Capital Management acquired 378,127 shares of Encompass Health, valued at approximately $38.22 million, giving it a 0.38% stake. Institutional investors collectively own 97.25% of the company.
• Encompass Health exceeded quarterly expectations, reporting $1.55 in EPS and $1.60 billion in revenue, with revenue up 9.6% year over year. Analysts maintain a consensus “Buy” rating with an average price target of $148.71.
• The company increased its quarterly dividend from $0.19 to $0.21 per share, representing an annualized dividend of $0.84 and a 0.7% yield. Meanwhile, the CEO and an executive vice president sold shares worth more than $22.8 million combined.

TimesSquare Capital Management LLC acquired a new stake in Encompass Health Corporation (NYSE:EHC - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 378,127 shares of the company's stock, valued at approximately $38,221,000. TimesSquare Capital Management LLC owned about 0.38% of Encompass Health as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in EHC. WPG Advisers LLC raised its position 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 purchasing an additional 137 shares during the period. Persistent Asset Partners Ltd acquired a new position in shares of Encompass Health in the 2nd quarter valued at $36,000. Assetmark Inc. grew its holdings in shares of Encompass Health by 89.6% during the 1st quarter. Assetmark Inc. now owns 455 shares of the company's stock worth $44,000 after purchasing an additional 215 shares during the period. Caitong International Asset Management Co. Ltd increased its position in shares of Encompass Health by 36,200.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock worth $46,000 after purchasing an additional 362 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd acquired a new stake in shares of Encompass Health during the 4th quarter worth about $55,000. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Stock Performance

Shares of Encompass Health stock opened at $121.94 on Tuesday. The stock has a market capitalization of $12.03 billion, a price-to-earnings ratio of 19.86, a price-to-earnings-growth ratio of 2.51 and a beta of 0.72. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. The business has a 50-day moving average of $109.53 and a 200 day moving average of $105.72. Encompass Health Corporation has a 12 month low of $92.77 and a 12 month high of $127.99.

Encompass Health (NYSE:EHC - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the firm earned $1.40 earnings per share. The business's revenue for the quarter 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. As a group, sell-side analysts forecast that Encompass Health Corporation will post 6.08 earnings per share for the current year.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be issued a dividend of $0.21 per share. This is a boost from Encompass Health's previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. Encompass Health's dividend payout ratio (DPR) is currently 12.38%.

Analyst Ratings Changes

A number of research firms have commented on EHC. TD Cowen upped their target price on shares of Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. Wall Street Zen upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Sunday. Barclays increased their price objective on shares of Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Finally, Truist Financial lifted their target price on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus price target of $148.71.

Insider Activity at Encompass Health

In other Encompass Health news, EVP John Patrick Darby sold 8,906 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.95, for a total value of $1,121,710.70. Following the completion of the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of the company's stock in a transaction on Monday, August 10th. The stock was 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 $33,602,622.58. This 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.

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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