Wellington Management Group LLP Cuts Stock Holdings in Encompass Health Corporation $EHC

Wellington Management Group LLP reduced its stake in Encompass Health Corporation (NYSE:EHC) by 14.8% during the 2nd quarter, Holdings Channel reports. The fund owned 3,278,739 shares of the company’s stock after selling 570,116 shares during the quarter. Wellington Management Group LLP’s holdings in Encompass Health were worth $331,415,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in Encompass Health during the 2nd quarter worth about $1,059,762,000. Northwestern Mutual Wealth Management Co. raised its position in Encompass Health by 3,059,159.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock valued at $402,640,000 after purchasing an additional 3,793,358 shares in the last quarter. Norges Bank purchased a new position in shares of Encompass Health in the 4th quarter valued at about $133,221,000. William Blair Investment Management LLC acquired a new position in shares of Encompass Health during the second quarter worth about $116,352,000. Finally, Price T Rowe Associates Inc. MD grew its position in shares of Encompass Health by 24.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock worth $510,047,000 after buying an additional 948,202 shares in the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on EHC. UBS Group raised their target price on shares of Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a report on Friday, August 7th. Weiss Ratings upgraded shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, August 12th. Barclays increased their price objective on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research report on Friday, May 22nd. Finally, Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $148.71.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the transaction, the chief executive officer owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP John Patrick Darby sold 8,906 shares of Encompass Health stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the sale, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. This trade represents a 10.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.80% of the stock is owned by company insiders.

Encompass Health Price Performance

EHC stock opened at $120.98 on Monday. The business has a 50 day moving average price of $113.20 and a 200 day moving average price of $107.19. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.76. The stock has a market cap of $11.93 billion, a price-to-earnings ratio of 19.70, a PEG ratio of 2.45 and a beta of 0.72. Encompass Health Corporation has a fifty-two week low of $92.77 and a fifty-two week high of $127.99.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the firm posted $1.40 earnings per share. The firm’s revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities research analysts anticipate 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. Investors of record on Thursday, October 1st will be given a $0.21 dividend. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health’s payout ratio is 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.