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 on Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the sale, the chief executive officer directly owned 267,814 shares of the company’s stock, valued at $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Encompass Health Stock Performance

Shares of NYSE:EHC opened at $123.44 on Friday. The company has a current ratio of 1.19, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. Encompass Health Corporation has a 1-year low of $92.77 and a 1-year high of $127.99. The stock has a market capitalization of $12.18 billion, a P/E ratio of 20.10, a P/E/G ratio of 2.53 and a beta of 0.72. The business has a 50-day moving average price of $108.73 and a two-hundred day moving average price of $105.34.

Encompass Health (NYSE:EHC) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. The company had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.57 billion. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. Encompass Health’s revenue was up 9.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities analysts predict that Encompass Health Corporation will post 6.08 earnings per share for the current 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 given a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio is presently 12.38%.

Institutional Investors Weigh In On Encompass Health

A number of hedge funds have recently modified their holdings of EHC. BlackRock Inc. acquired a new position in shares of Encompass Health in the 2nd quarter valued at approximately $1,059,762,000. Price T Rowe Associates Inc. MD raised its holdings in Encompass Health by 24.6% during the 4th 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 during the period. Northwestern Mutual Wealth Management Co. lifted its stake in Encompass Health by 3,059,159.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock valued at $402,640,000 after buying an additional 3,793,358 shares in the last quarter. Wellington Management Group LLP boosted its holdings in shares of Encompass Health by 21.7% in the fourth quarter. Wellington Management Group LLP now owns 3,384,877 shares of the company’s stock valued at $359,271,000 after buying an additional 603,472 shares during the period. Finally, T. Rowe Price Investment Management Inc. boosted its holdings in shares of Encompass Health by 27.2% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company’s stock valued at $289,008,000 after buying an additional 581,812 shares during the period. Institutional investors and hedge funds own 97.25% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on EHC. UBS Group lifted their price objective on Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Barclays raised their target price on Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Leerink Partners set a $152.00 target price on Encompass Health in a research report on Friday, May 22nd. Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday. Finally, TD Cowen lifted 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. One investment 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 company presently has a consensus rating of “Buy” and an average target price of $148.71.

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.