Vanguard Group Inc. Increases Position in Encompass Health Corporation (NYSE:EHC)

Key Points

• Vanguard Group Inc. has increased its stake in Encompass Health Corporation to over 10%, now holding approximately $1.05 billion worth of shares after acquiring additional shares in the first quarter.
• Encompass Health announced a dividend increase to $0.19 per share from the previous $0.17, with a dividend yield of 0.6%, set to be paid on October 15th.
• Research analysts have set a consensus rating of "Buy" for Encompass Health, with price targets ranging from $129.00 to $135.00, reflecting positive sentiment about the company's performance and growth potential.

Vanguard Group Inc. boosted its position in Encompass Health Corporation (NYSE:EHC - Free Report) by 0.1% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 10,411,482 shares of the company's stock after acquiring an additional 7,401 shares during the period. Vanguard Group Inc. owned 10.33% of Encompass Health worth $1,054,475,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in EHC. Colonial Trust Co SC purchased a new position in shares of Encompass Health during the fourth quarter valued at about $29,000. Transce3nd LLC bought a new stake in Encompass Health during the fourth quarter worth about $40,000. Arlington Trust Co LLC boosted its stake in Encompass Health by 22.9% during the first quarter. Arlington Trust Co LLC now owns 671 shares of the company's stock worth $68,000 after acquiring an additional 125 shares in the last quarter. Johnson Financial Group Inc. bought a new stake in Encompass Health during the fourth quarter worth about $72,000. Finally, Mowery & Schoenfeld Wealth Management LLC bought a new stake in Encompass Health during the first quarter worth about $87,000. Institutional investors own 97.25% of the company's stock.

Encompass Health Stock Performance

Shares of EHC traded up $0.70 during mid-day trading on Friday, hitting $120.35. 604,151 shares of the company traded hands, compared to its average volume of 943,532. 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 stock has a 50-day moving average price of $116.13 and a two-hundred day moving average price of $109.46. Encompass Health Corporation has a 1 year low of $87.85 and a 1 year high of $123.13. The stock has a market cap of $12.12 billion, a price-to-earnings ratio of 23.55, a P/E/G ratio of 2.09 and a beta of 0.86.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Monday, August 4th. The company reported $1.40 EPS for the quarter, beating 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 analysts' expectations of $1.43 billion. During the same period in the prior year, the company earned $1.11 earnings per share. The firm's revenue was up 12.0% on a year-over-year basis. Equities analysts anticipate that Encompass Health Corporation will post 4.8 earnings per share for the current year.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 1st will be issued a dividend of $0.19 per share. This is an increase from Encompass Health's previous quarterly dividend of $0.17. This represents a $0.76 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Wednesday, October 1st. Encompass Health's dividend payout ratio is currently 13.31%.

Analyst Ratings Changes

Several research firms recently commented on EHC. Truist Financial set a $140.00 price objective on shares of Encompass Health and gave the stock a "buy" rating in a research note on Thursday. Barclays upped their target price on shares of Encompass Health from $118.00 to $129.00 and gave the stock an "overweight" rating in a research note on Friday, April 25th. Stephens upgraded shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price on the stock in a research note on Thursday, June 5th. Royal Bank Of Canada upped their target price on shares of Encompass Health from $110.00 to $125.00 and gave the stock an "outperform" rating in a research note on Monday, April 28th. Finally, UBS Group upped their target price 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. Seven analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $134.00.

Insider Buying and Selling

In other Encompass Health news, CEO Mark J. Tarr sold 118,384 shares of the company's stock in a transaction that occurred on 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 completion of the sale, the chief executive officer directly owned 527,070 shares of the company's stock, valued at approximately $64,054,817.10. This represents a 18.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.00% of the company's stock.

About Encompass Health

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.