Federated Hermes Inc. Cuts Stake in Encompass Health Co. (NYSE:EHC)

Federated Hermes Inc. trimmed its stake in shares of Encompass Health Co. (NYSE:EHC) by 21.0% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 10,267 shares of the company’s stock after selling 2,727 shares during the period. Federated Hermes Inc.’s holdings in Encompass Health were worth $881,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently bought and sold shares of EHC. Vanguard Group Inc. increased its position in Encompass Health by 1.7% in the first quarter. Vanguard Group Inc. now owns 10,166,147 shares of the company’s stock worth $839,520,000 after purchasing an additional 169,113 shares during the last quarter. Wellington Management Group LLP raised its stake in shares of Encompass Health by 5.8% in the fourth quarter. Wellington Management Group LLP now owns 8,215,770 shares of the company’s stock valued at $548,156,000 after acquiring an additional 449,230 shares during the period. TD Asset Management Inc boosted its stake in shares of Encompass Health by 16.0% during the 1st quarter. TD Asset Management Inc now owns 2,283,674 shares of the company’s stock worth $188,586,000 after purchasing an additional 314,488 shares during the period. Epoch Investment Partners Inc. raised its position in Encompass Health by 14.2% in the 1st quarter. Epoch Investment Partners Inc. now owns 1,598,042 shares of the company’s stock worth $131,966,000 after purchasing an additional 198,701 shares during the period. Finally, 8 Knots Management LLC lifted its stake in Encompass Health by 14.0% in the first quarter. 8 Knots Management LLC now owns 1,288,815 shares of the company’s stock worth $106,430,000 after purchasing an additional 158,356 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors.

Insider Activity at Encompass Health

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the completion of the sale, the chief financial officer now owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 2.10% of the stock is owned by insiders.

Encompass Health Stock Up 0.6 %

Shares of Encompass Health stock opened at $92.65 on Monday. The firm’s 50 day moving average price is $90.04 and its 200-day moving average price is $85.32. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.08. Encompass Health Co. has a 52-week low of $57.55 and a 52-week high of $94.59. The company has a market cap of $9.33 billion, a P/E ratio of 25.04, a PEG ratio of 1.39 and a beta of 0.88.

Encompass Health (NYSE:EHC) last issued its quarterly earnings results on Monday, August 5th. The company reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.10. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.30 billion. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The company’s revenue was up 9.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.95 earnings per share. On average, sell-side analysts predict that Encompass Health Co. will post 4.18 EPS for the current fiscal year.

Encompass Health declared that its board has initiated a share repurchase plan on Wednesday, July 24th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st will be issued a dividend of $0.17 per share. The ex-dividend date is Tuesday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.15. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.73%. Encompass Health’s payout ratio is 18.38%.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. Leerink Partners started coverage on Encompass Health in a report on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective for the company. Stephens reaffirmed an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a research note on Tuesday, August 6th. Barclays decreased their price target on shares of Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a research note on Tuesday, August 6th. Truist Financial lifted their price objective on Encompass Health from $100.00 to $104.00 and gave the company a “buy” rating in a report on Thursday, August 15th. Finally, UBS Group increased their target price on shares of Encompass Health from $96.00 to $100.00 and gave the stock a “buy” rating in a report on Thursday, August 8th. Nine analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $100.38.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.