VELA Investment Management LLC Acquires 17,873 Shares of Encompass Health Corporation $EHC

VELA Investment Management LLC boosted its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 54.1% in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 50,925 shares of the company's stock after purchasing an additional 17,873 shares during the quarter. Encompass Health accounts for about 1.1% of VELA Investment Management LLC's portfolio, making the stock its 23rd largest holding. VELA Investment Management LLC owned approximately 0.05% of Encompass Health worth $5,147,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently made changes to their positions in EHC. Transamerica Financial Advisors LLC bought a new position in shares of Encompass Health during the second quarter worth approximately $29,000. Persistent Asset Partners Ltd bought a new stake in shares of Encompass Health in the second quarter valued at approximately $36,000. Keating Financial Advisory Services Inc. acquired a new stake in Encompass Health during the second quarter worth approximately $39,000. Assetmark Inc. increased its stake in Encompass Health by 89.6% during the 1st quarter. Assetmark Inc. now owns 455 shares of the company's stock worth $44,000 after acquiring an additional 215 shares during the period. Finally, Caitong International Asset Management Co. Ltd increased its stake in 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 acquiring an additional 362 shares during the period. Institutional investors and hedge funds own 97.25% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently weighed in on EHC. Barclays upped their target price on Encompass Health from $140.00 to $144.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Wall Street Zen downgraded Encompass Health from a "buy" rating to a "hold" rating in a research note on Saturday. UBS Group upped their price objective on shares of Encompass Health from $150.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Truist Financial increased their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Finally, Weiss Ratings raised shares of Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Buy" and an average price target of $148.71.

Insiders Place Their Bets

In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of the company's stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 267,814 shares of the company's stock, valued at $33,602,622.58. This represents a 39.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP John Darby sold 4,858 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $121.09, for a total value of $588,255.22. Following the completion of the transaction, the executive vice president owned 75,041 shares of the company's stock, valued at $9,086,714.69. This represents a 6.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 186,912 shares of company stock worth $23,434,845. Insiders own 1.80% of the company's stock.

Encompass Health Stock Up 0.0%

Shares of NYSE EHC opened at $121.80 on Monday. The company has a market cap of $12.02 billion, a price-to-earnings ratio of 19.84, a PEG ratio of 2.47 and a beta of 0.75. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. Encompass Health Corporation has a 12 month low of $92.77 and a 12 month high of $127.99. The stock has a 50-day moving average price of $115.33 and a two-hundred day moving average price of $107.57.

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

Encompass Health Increases Dividend

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

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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