UBS Group AG Acquires 256,239 Shares of Encompass Health Corporation $EHC

Key Points

• UBS boosted its stake in Encompass Health by 228.8% in Q4, buying 256,239 shares to hold 368,248 shares (about 0.37% of the company) valued at roughly $39.09 million.
• Insider selling was notable: CEO Mark J. Tarr sold 150,000 shares at an average $111.64 (a 28.46% reduction) and Treasurer Edmund Fay sold 11,937 shares at $107; insiders now own about 1.8% of the stock.
• Operationally, Encompass beat the quarter's EPS estimate ($1.60 vs. $1.51) with revenue up 9% year-over-year, set FY2026 guidance of $5.89–$6.11 EPS, and holds an average analyst price target of $144.17 with mostly Buy ratings; the company pays a $0.19 quarterly dividend (0.7% yield).

UBS Group AG increased its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 228.8% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 368,248 shares of the company's stock after purchasing an additional 256,239 shares during the quarter. UBS Group AG owned approximately 0.37% of Encompass Health worth $39,086,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently modified their holdings of the business. Global Retirement Partners LLC grew its stake in shares of Encompass Health by 23.0% in the third quarter. Global Retirement Partners LLC now owns 449 shares of the company's stock worth $57,000 after purchasing an additional 84 shares during the last quarter. EP Wealth Advisors LLC boosted its position in Encompass Health by 2.4% during the 2nd quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company's stock valued at $453,000 after acquiring an additional 88 shares in the last quarter. Allworth Financial LP boosted its position in Encompass Health by 14.7% during the 3rd quarter. Allworth Financial LP now owns 701 shares of the company's stock valued at $89,000 after acquiring an additional 90 shares in the last quarter. TD Private Client Wealth LLC boosted its position in Encompass Health by 1.1% during the 3rd quarter. TD Private Client Wealth LLC now owns 8,216 shares of the company's stock valued at $1,044,000 after acquiring an additional 91 shares in the last quarter. Finally, Westside Investment Management Inc. boosted its position in Encompass Health by 56.7% during the 3rd quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock valued at $35,000 after acquiring an additional 101 shares in the last quarter. 97.25% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, CEO Mark J. Tarr sold 150,000 shares of the business's stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total value of $16,746,000.00. Following the completion of the transaction, the chief executive officer directly owned 377,070 shares in the company, valued at $42,096,094.80. The trade was a 28.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Treasurer Edmund Fay sold 11,937 shares of the business's stock in a transaction that occurred 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 transaction, the treasurer owned 89,325 shares of the company's stock, valued at approximately $9,557,775. The trade was a 11.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is owned by insiders.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Barclays cut their price objective on Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research report on Tuesday. Wall Street Zen raised Encompass Health from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Encompass Health currently has an average rating of "Buy" and an average price target of $144.17.

Encompass Health Price Performance

EHC stock opened at $107.21 on Friday. The firm has a 50 day moving average price of $103.05 and a 200-day moving average price of $107.07. Encompass Health Corporation has a 52-week low of $92.77 and a 52-week high of $127.99. The firm has a market capitalization of $10.63 billion, a price-to-earnings ratio of 17.90, a PEG ratio of 2.29 and a beta of 0.72. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.08 and a current ratio of 1.17.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period last year, the business earned $1.37 earnings per share. The business's revenue was up 9.0% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Equities research analysts forecast that Encompass Health Corporation will post 5.97 EPS for the current fiscal year.

Encompass Health Dividend Announcement

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

Encompass Health Company 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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