TimesSquare Capital Management LLC Buys New Holdings in Encompass Health Corporation $EHC

TimesSquare Capital Management LLC purchased a new position in shares of Encompass Health Corporation (NYSE:EHC) in the 2nd quarter, Holdings Channel reports. The firm purchased 378,127 shares of the company’s stock, valued at approximately $38,221,000.

Other large investors also recently modified their holdings of the company. Persistent Asset Partners Ltd purchased a new stake in shares of Encompass Health during the 2nd quarter worth $36,000. Nippon Life Global Investors Americas Inc. acquired a new stake in Encompass Health in the second quarter valued at $14,669,000. Global Retirement Partners LLC purchased a new stake in Encompass Health during the 2nd quarter worth about $720,000. Bank of New York Mellon Corp acquired a new position in shares of Encompass Health during the 2nd quarter worth about $81,676,000. Finally, State of Wyoming purchased a new position in shares of Encompass Health in the 2nd quarter valued at about $70,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

Encompass Health Stock Down 1.3%

EHC stock opened at $121.94 on Tuesday. The company has a market cap of $12.03 billion, a price-to-earnings ratio of 19.86, a price-to-earnings-growth ratio of 2.51 and a beta of 0.72. The company has a fifty day moving average price of $109.53 and a 200 day moving average price of $105.72. 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 12 month low of $92.77 and a 12 month high of $127.99.

Encompass Health (NYSE:EHC) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate 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 for the quarter was up 9.6% on a year-over-year basis. During the same period last year, the firm posted $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Sell-side analysts expect that Encompass Health Corporation will post 6.08 earnings per share for the current year.

Encompass Health Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a dividend of $0.21 per share. This is an increase 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%. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health’s dividend payout ratio is 12.38%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on EHC shares. Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday. Leerink Partners set a $152.00 price objective on Encompass Health in a report on Friday, May 22nd. Barclays lifted their target price on Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. UBS Group boosted their target price on Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a report on Friday, August 7th. Finally, TD Cowen raised their price target on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. 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 company. According to MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $148.71.

Insider Activity

In related news, CEO Mark J. Tarr sold 173,148 shares of the business’s 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 transaction, the chief executive officer owned 267,814 shares in the company, valued at $33,602,622.58. The trade was a 39.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 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 sale, the executive vice president directly owned 75,041 shares of the company’s stock, valued at $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 1.80% of the company’s stock.

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.