Madison Asset Management LLC Purchases New Stake in Encompass Health Corporation $EHC

Madison Asset Management LLC acquired a new position in shares of Encompass Health Corporation (NYSE:EHC) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 72,599 shares of the company’s stock, valued at approximately $7,338,000. Madison Asset Management LLC owned about 0.07% of Encompass Health at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the business. Royal Bank of Canada grew its holdings in shares of Encompass Health by 21.5% during the first quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock valued at $8,960,000 after buying an additional 15,677 shares during the last quarter. Millennium Management LLC raised its holdings in shares of Encompass Health by 38.4% in the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock worth $9,338,000 after acquiring an additional 25,574 shares during the last quarter. Caxton Associates LLP bought a new position in Encompass Health in the 1st quarter valued at about $259,000. Walleye Capital LLC boosted its stake in Encompass Health by 667.6% during the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock valued at $800,000 after purchasing an additional 7,671 shares during the last quarter. Finally, Gamco Investors INC. ET AL bought a new stake in Encompass Health during the 2nd quarter worth approximately $588,000. 97.25% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on EHC shares. Barclays raised their target price on Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. TD Cowen raised their price objective on Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, August 10th. UBS Group lifted their price objective on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Encompass Health has a consensus rating of “Buy” and an average price target of $148.71.

Encompass Health Stock Down 0.1%

Encompass Health stock opened at $121.95 on Thursday. The firm has a 50 day moving average price of $110.26 and a 200-day moving average price of $106.10. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.76. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month high of $127.99. The company has a market capitalization of $12.03 billion, a P/E ratio of 19.86, a P/E/G ratio of 2.48 and a beta of 0.72.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data 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 return on equity of 18.08% and a net margin of 10.01%.The business had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter in the prior year, the business earned $1.40 earnings per share. Encompass Health’s revenue for the quarter was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, equities analysts predict that Encompass Health Corporation will post 6.08 EPS for the current 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 given a dividend of $0.21 per share. 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%. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s payout ratio is currently 12.38%.

Insider Transactions at Encompass Health

In related news, CEO Mark J. Tarr sold 173,148 shares of the company’s stock in a transaction 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 completion of the sale, the chief executive officer directly owned 267,814 shares in the company, valued at $33,602,622.58. This represents a 39.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP John Patrick Darby sold 8,906 shares of the stock in a transaction that occurred on 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 completion of the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,451,413.95. This trade represents a 10.61% decrease in their position. The SEC filing for this sale provides additional information. 1.80% of the stock is owned by company insiders.

Encompass Health Company 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.