Hsbc Holdings PLC Sells 3,153 Shares of Encompass Health Co. (NYSE:EHC)

Hsbc Holdings PLC reduced its holdings in Encompass Health Co. (NYSE:EHC) by 4.4% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 68,975 shares of the company’s stock after selling 3,153 shares during the quarter. Hsbc Holdings PLC’s holdings in Encompass Health were worth $5,917,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Principal Securities Inc. bought a new stake in shares of Encompass Health in the 4th quarter valued at $25,000. Oakworth Capital Inc. acquired a new stake in Encompass Health in the second quarter worth $40,000. Parallel Advisors LLC raised its holdings in shares of Encompass Health by 192.3% during the fourth quarter. Parallel Advisors LLC now owns 573 shares of the company’s stock valued at $38,000 after purchasing an additional 377 shares during the period. GAMMA Investing LLC boosted its position in shares of Encompass Health by 31.9% during the 1st quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock worth $51,000 after purchasing an additional 149 shares in the last quarter. Finally, Daiwa Securities Group Inc. acquired a new stake in shares of Encompass Health in the 2nd quarter valued at about $60,000. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Stock Performance

Shares of EHC stock opened at $92.82 on Tuesday. Encompass Health Co. has a one year low of $57.55 and a one year high of $94.59. The company has a market cap of $9.35 billion, a P/E ratio of 25.09, a P/E/G ratio of 1.39 and a beta of 0.88. The firm has a 50-day moving average of $90.19 and a 200-day moving average of $85.49. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.35 and a quick ratio of 1.35.

Encompass Health (NYSE:EHC) last posted its earnings results on Monday, August 5th. The company reported $1.11 EPS for the quarter, topping the consensus estimate of $1.01 by $0.10. The firm had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.30 billion. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The company’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.95 EPS. Equities research analysts forecast that Encompass Health Co. will post 4.18 EPS for the current fiscal year.

Encompass Health declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, July 24th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to purchase up to 5.4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its shares are undervalued.

Encompass Health Increases Dividend

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

Insider Activity

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the business’s stock in a transaction dated Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total value of $1,058,528.40. Following the transaction, the chief financial officer now directly 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 Securities & Exchange Commission, which is available through this link. Insiders own 2.10% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on EHC shares. Leerink Partnrs raised Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Barclays reduced 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 report on Tuesday, August 6th. Truist Financial upped their price objective on shares of Encompass Health from $100.00 to $104.00 and gave the stock a “buy” rating in a report on Thursday, August 15th. UBS Group lifted their price objective on shares of Encompass Health from $96.00 to $100.00 and gave the company a “buy” rating in a report on Thursday, August 8th. Finally, Stephens restated an “overweight” rating and issued a $105.00 target price on shares of Encompass Health in a report on Tuesday, August 6th. Nine investment analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $100.38.

Encompass Health Company Profile

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.