William Blair Investment Management LLC Acquires Shares of 1,151,085 Encompass Health Corporation $EHC

William Blair Investment Management LLC bought a new position in Encompass Health Corporation (NYSE:EHC) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 1,151,085 shares of the company’s stock, valued at approximately $116,352,000. William Blair Investment Management LLC owned about 1.16% of Encompass Health at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in EHC. EP Wealth Advisors LLC grew its holdings in Encompass Health by 2.4% during the 2nd quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company’s stock valued at $453,000 after buying an additional 88 shares in the last quarter. Gamco Investors INC. ET AL raised its holdings in shares of Encompass Health by 2.0% during the 1st quarter. Gamco Investors INC. ET AL now owns 4,813 shares of the company’s stock worth $466,000 after acquiring an additional 94 shares in the last quarter. Gibson Capital LLC boosted its position in shares of Encompass Health by 4.3% during the 1st quarter. Gibson Capital LLC now owns 2,431 shares of the company’s stock valued at $235,000 after acquiring an additional 101 shares during the last quarter. Leuthold Group LLC grew its holdings in shares of Encompass Health by 0.3% in the fourth quarter. Leuthold Group LLC now owns 31,168 shares of the company’s stock valued at $3,308,000 after purchasing an additional 104 shares in the last quarter. Finally, Covestor Ltd increased its position in Encompass Health by 24.4% in the fourth quarter. Covestor Ltd now owns 540 shares of the company’s stock worth $57,000 after purchasing an additional 106 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of the business’s stock in a transaction that occurred on 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 completion of 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP John Patrick Darby sold 8,906 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.95, for a total value of $1,121,710.70. Following the transaction, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,451,413.95. This 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 insiders.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. UBS Group increased their price objective on shares of Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Weiss Ratings upgraded shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Sunday, August 16th. Truist Financial lifted their price target on Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Leerink Partners set a $152.00 price objective on Encompass Health in a research note on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $148.71.

Encompass Health Stock Down 0.6%

NYSE EHC opened at $120.24 on Friday. 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 52 week low of $92.77 and a 52 week high of $127.99. The firm has a market capitalization of $11.86 billion, a price-to-earnings ratio of 19.58, a PEG ratio of 2.45 and a beta of 0.72. The company has a fifty day moving average of $111.01 and a two-hundred day moving average of $106.38.

Encompass Health (NYSE:EHC) last announced its earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share 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 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 firm posted $1.40 earnings per share. The business’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. On average, analysts predict that Encompass Health Corporation will post 6.08 earnings per share for the current year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be paid a $0.21 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 annualized dividend and a 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.