VELA Investment Management LLC Purchases 17,105 Shares of Encompass Health Corporation $EHC

Key Points

• VELA Investment Management increased its Encompass Health stake by 53.6% in the second quarter, adding 17,105 shares to hold 48,991 shares valued at approximately $4.95 million. Institutional investors collectively own 97.25% of the company.
• Analysts remain broadly positive, with Encompass Health receiving a consensus “Buy” rating and an average price target of $148.71. Recent targets range from $140 to $155.
• Encompass Health exceeded quarterly expectations, reporting $1.55 in EPS and $1.60 billion in revenue, while revenue grew 9.6% year over year. The company also raised its quarterly dividend to $0.21 per share, although executives sold a combined 186,912 shares over the past three months.

VELA Investment Management LLC grew its position in shares of Encompass Health Corporation (NYSE:EHC - Free Report) by 53.6% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 48,991 shares of the company's stock after buying an additional 17,105 shares during the period. Encompass Health makes up 1.1% of VELA Investment Management LLC's holdings, making the stock its 24th biggest position. VELA Investment Management LLC's holdings in Encompass Health were worth $4,952,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of EHC. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Encompass Health by 3,059,159.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock worth $402,640,000 after purchasing an additional 3,793,358 shares during the period. AlphaCore Capital LLC bought a new stake in shares of Encompass Health in the fourth quarter valued at approximately $4,881,000. Ancora Advisors LLC acquired a new stake in Encompass Health during the second quarter worth approximately $10,639,000. Systematic Financial Management LP grew its position in Encompass Health by 3.6% during the fourth quarter. Systematic Financial Management LP now owns 440,752 shares of the company's stock worth $46,782,000 after buying an additional 15,462 shares in the last quarter. Finally, Trillium Asset Management LLC increased its stake in Encompass Health by 5.7% during the 4th quarter. Trillium Asset Management LLC now owns 217,734 shares of the company's stock worth $23,424,000 after acquiring an additional 11,793 shares during the period. Institutional investors own 97.25% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on EHC shares. Barclays lifted their price objective on Encompass Health from $140.00 to $144.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. UBS Group raised their price target on Encompass Health from $150.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Wall Street Zen downgraded Encompass Health from a "buy" rating to a "hold" rating in a research note on Saturday. Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research report on Friday, May 22nd. Finally, TD Cowen increased their price objective on shares of Encompass Health from $125.00 to $140.00 and gave the stock a "buy" rating in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $148.71.

Insider Activity

In related news, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the sale, the chief executive officer directly owned 267,814 shares of the company's stock, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP John Darby sold 8,906 shares of Encompass Health stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the sale, the executive vice president directly owned 75,041 shares in the company, valued at $9,451,413.95. This trade represents a 10.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 186,912 shares of company stock valued at $23,434,845. Insiders own 1.80% of the company's stock.

Encompass Health Stock Up 0.0%

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

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, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same quarter last year, the company posted $1.40 EPS. The company'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. Equities analysts expect that Encompass Health Corporation will post 6.08 earnings per share for the current fiscal 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 paid a dividend of $0.21 per share. The ex-dividend date of this dividend is Thursday, October 1st. This is a positive change from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 annualized dividend and a yield of 0.7%. Encompass Health's payout ratio is presently 12.38%.

About Encompass Health

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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