Insider Selling: Encompass Health (NYSE:EHC) CEO Sells $21,724,879.56 in Stock

Encompass Health Corporation (NYSE:EHC) CEO Mark Tarr sold 173,148 shares of Encompass Health 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 sale, the chief executive officer owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link.

Encompass Health Stock Down 1.2%

Shares of NYSE:EHC traded down $1.50 during midday trading on Tuesday, reaching $124.31. The company had a trading volume of 572,895 shares, compared to its average volume of 1,080,474. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.17. Encompass Health Corporation has a one year low of $92.77 and a one year high of $127.99. The stock’s fifty day moving average price is $107.37 and its 200-day moving average price is $104.81. The stock has a market capitalization of $12.33 billion, a P/E ratio of 20.28, a PEG ratio of 2.52 and a beta of 0.72.

Encompass Health (NYSE:EHC) last released its 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. The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The business’s quarterly revenue was up 9.6% on a year-over-year basis. During the same period in the prior year, the business earned $1.40 earnings per share. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities research analysts expect that Encompass Health Corporation will post 6.07 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders 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 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health’s payout ratio is 12.38%.

Institutional Trading of Encompass Health

Several large investors have recently added to or reduced their stakes in the business. Virtus Advisers LLC purchased a new stake in shares of Encompass Health in the second quarter worth approximately $448,000. Trillium Asset Management LLC bought a new position in Encompass Health during the second quarter worth about $30,566,000. Vise Technologies Inc. bought a new stake in shares of Encompass Health during the second quarter worth $563,000. Quartz Partners LLC acquired a new position in Encompass Health during the second quarter valued at approximately $2,136,000. Finally, Live Oak Investment Partners bought a new stake in Encompass Health in the 2nd quarter valued at $969,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

EHC has been the subject of a number of recent analyst reports. Wall Street Zen lowered Encompass Health from a “buy” rating to a “hold” rating in a report on Saturday. UBS Group boosted their price objective on Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research report on Friday. Truist Financial boosted their target price on Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday. Weiss Ratings cut Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. Finally, Leerink Partners set a $152.00 price objective on Encompass Health in a research report on Friday, May 22nd. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Encompass Health presently has a consensus rating of “Moderate Buy” and an average price target of $148.71.

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.