Tokio Marine Asset Management Co. Ltd. Lowers Stock Holdings in Encompass Health Corporation (NYSE:EHC)

Key Points

• Tokio Marine Asset Management Co. Ltd. reduced its stake in Encompass Health Corporation by 13.2%, selling 9,273 shares and retaining 60,840 shares valued at approximately $6.16 million.
• Equities research analysts have raised their price targets for Encompass Health, with Royal Bank of Canada setting a target of $125.00 and UBS Group increasing theirs to $140.00, indicating a generally positive outlook.
• Encompass Health has announced a quarterly dividend increase from $0.17 to $0.19 per share, reflecting a commitment to returning value to shareholders.

Tokio Marine Asset Management Co. Ltd. reduced its stake in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 13.2% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 60,840 shares of the company's stock after selling 9,273 shares during the quarter. Tokio Marine Asset Management Co. Ltd. owned 0.06% of Encompass Health worth $6,162,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd lifted its holdings in Encompass Health by 19.0% in the first quarter. Caitong International Asset Management Co. Ltd now owns 720 shares of the company's stock worth $73,000 after buying an additional 115 shares during the period. Arlington Trust Co LLC lifted its holdings in Encompass Health by 22.9% in the first quarter. Arlington Trust Co LLC now owns 671 shares of the company's stock worth $68,000 after buying an additional 125 shares during the period. IFP Advisors Inc increased its stake in shares of Encompass Health by 5.9% during the first quarter. IFP Advisors Inc now owns 2,814 shares of the company's stock valued at $285,000 after purchasing an additional 158 shares in the last quarter. Merit Financial Group LLC increased its stake in shares of Encompass Health by 4.1% during the first quarter. Merit Financial Group LLC now owns 4,220 shares of the company's stock valued at $427,000 after purchasing an additional 166 shares in the last quarter. Finally, Sequoia Financial Advisors LLC increased its stake in shares of Encompass Health by 6.7% during the first quarter. Sequoia Financial Advisors LLC now owns 2,727 shares of the company's stock valued at $276,000 after purchasing an additional 172 shares in the last quarter. 97.25% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

EHC has been the subject of a number of analyst reports. Wall Street Zen downgraded shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. Stephens raised shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price for the company in a research report on Thursday, June 5th. Truist Financial set a $140.00 target price on shares of Encompass Health and gave the stock a "buy" rating in a research report on Thursday. UBS Group lifted their price target on shares of Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Finally, KeyCorp lifted their price target on shares of Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Seven analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $134.00.

Insider Buying and Selling

In related news, CEO Mark J. Tarr sold 118,384 shares of the company's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $121.53, for a total transaction of $14,387,207.52. Following the transaction, the chief executive officer directly owned 527,070 shares in the company, valued at approximately $64,054,817.10. This represents a 18.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 2.00% of the company's stock.

Encompass Health Price Performance

EHC stock traded up $0.70 during mid-day trading on Friday, hitting $120.35. The company had a trading volume of 604,151 shares, compared to its average volume of 943,532. The company has a market capitalization of $12.12 billion, a price-to-earnings ratio of 23.55, a P/E/G ratio of 2.10 and a beta of 0.86. Encompass Health Corporation has a 12-month low of $87.85 and a 12-month high of $123.13. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.76. The company has a 50-day moving average price of $116.13 and a 200 day moving average price of $109.56.

Encompass Health (NYSE:EHC - Get Free Report) last posted its earnings results on Monday, August 4th. The company reported $1.40 earnings per share 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 firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. During the same period in the previous year, the firm posted $1.11 EPS. The business's quarterly revenue was up 12.0% on a year-over-year basis. On average, research analysts anticipate that Encompass Health Corporation will post 4.8 earnings per share for the current year.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be issued a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 0.6%. The ex-dividend date is Wednesday, October 1st. This is a positive change from Encompass Health's previous quarterly dividend of $0.17. Encompass Health's payout ratio is currently 14.87%.

Encompass Health 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.