William Blair Investment Management LLC Acquires New Position in Encompass Health Corporation $EHC

William Blair Investment Management LLC acquired a new stake in Encompass Health Corporation (NYSE:EHC) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 1,151,085 shares of the company’s stock, valued at approximately $116,352,000.

A number of other institutional investors have also modified their holdings of EHC. WPG Advisers LLC raised its stake in shares of Encompass Health by 73.3% during the fourth quarter. WPG Advisers LLC now owns 324 shares of the company’s stock valued at $34,000 after acquiring an additional 137 shares in the last quarter. Persistent Asset Partners Ltd bought a new position in Encompass Health in the second quarter worth approximately $36,000. Keating Financial Advisory Services Inc. purchased a new position in Encompass Health during the 2nd quarter worth $39,000. Assetmark Inc. increased its holdings in Encompass Health by 89.6% during the 1st quarter. Assetmark Inc. now owns 455 shares of the company’s stock worth $44,000 after purchasing an additional 215 shares during the period. Finally, Caitong International Asset Management Co. Ltd raised its position in Encompass Health by 36,200.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock valued at $46,000 after purchasing an additional 362 shares in the last quarter. 97.25% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, CEO Mark J. Tarr sold 173,148 shares of the business’s stock in a transaction that occurred 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 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 transaction was disclosed in a legal 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 shares were sold at an average price of $125.95, for a total transaction 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 position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.80% of the company’s stock.

Encompass Health Stock Down 0.6%

Shares of NYSE EHC opened at $120.24 on Friday. Encompass Health Corporation has a 12-month low of $92.77 and a 12-month high of $127.99. The stock’s fifty day simple moving average is $111.01 and its two-hundred day simple moving average is $106.38. The stock has a market capitalization of $11.86 billion, a PE ratio of 19.58, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC) last released 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 firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The business’s revenue for the quarter was up 9.6% compared to the same quarter last year. During the same period in the previous year, the company posted $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, analysts expect that Encompass Health Corporation will post 6.08 EPS for the current fiscal year.

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be issued a $0.21 dividend. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, October 1st. Encompass Health’s dividend payout ratio is presently 12.38%.

Analysts Set New Price Targets

EHC has been the subject of several research reports. TD Cowen upped their target price on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, August 10th. Truist Financial lifted their price objective on Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a report on Friday, August 7th. Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research note on Friday, May 22nd. UBS Group increased their target price 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, Barclays raised their target price on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target 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.