Systematic Financial Management LP Reduces Holdings in Encompass Health Co. (NYSE:EHC)

Systematic Financial Management LP lowered its stake in shares of Encompass Health Co. (NYSE:EHC) by 5.8% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 426,124 shares of the company’s stock after selling 26,020 shares during the quarter. Encompass Health comprises 1.1% of Systematic Financial Management LP’s portfolio, making the stock its 13th largest position. Systematic Financial Management LP owned approximately 0.42% of Encompass Health worth $36,557,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently bought and sold shares of the company. Corient Private Wealth LLC grew its holdings in shares of Encompass Health by 187.2% during the 4th quarter. Corient Private Wealth LLC now owns 17,077 shares of the company’s stock worth $1,139,000 after acquiring an additional 11,130 shares during the period. Franklin Resources Inc. grew its stake in Encompass Health by 18.6% in the fourth quarter. Franklin Resources Inc. now owns 57,265 shares of the company’s stock worth $3,821,000 after purchasing an additional 8,988 shares during the period. Hsbc Holdings PLC raised its holdings in Encompass Health by 25.0% in the fourth quarter. Hsbc Holdings PLC now owns 78,319 shares of the company’s stock worth $5,209,000 after purchasing an additional 15,644 shares in the last quarter. Parallel Advisors LLC lifted its position in 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 buying an additional 377 shares during the period. Finally, Allianz Asset Management GmbH boosted its holdings in shares of Encompass Health by 701.7% during the 4th quarter. Allianz Asset Management GmbH now owns 192,350 shares of the company’s stock valued at $12,834,000 after buying an additional 168,358 shares in the last quarter. 97.25% of the stock is owned by institutional investors.

Insider Activity

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the firm’s stock in a transaction that occurred on 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 owns 136,227 shares of the company’s stock, valued at $11,761,839.18. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 2.10% of the company’s stock.

Encompass Health Stock Performance

Shares of EHC stock opened at $96.01 on Friday. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.08. The company has a 50 day moving average price of $91.00 and a 200-day moving average price of $85.98. Encompass Health Co. has a 52 week low of $57.55 and a 52 week high of $97.56. The firm has a market capitalization of $9.67 billion, a PE ratio of 25.95, a P/E/G ratio of 1.41 and a beta of 0.88.

Encompass Health (NYSE:EHC) last announced its earnings results on Monday, August 5th. The company reported $1.11 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.10. The business had revenue of $1.30 billion during the quarter, compared to analyst estimates 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 period in the previous year, the business earned $0.95 EPS. As a group, equities research analysts expect that Encompass Health Co. will post 4.18 earnings per share for the current year.

Encompass Health announced that its Board of Directors 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 reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 15th. Shareholders of record on Tuesday, October 1st will be paid a dividend of $0.17 per share. This is an increase 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 0.71%. The ex-dividend date of this dividend is Tuesday, October 1st. Encompass Health’s payout ratio is currently 18.38%.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Leerink Partners assumed coverage on shares of Encompass Health in a research report on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price target for the company. Royal Bank of Canada upped their price target on Encompass Health from $95.00 to $105.00 and gave the stock an “outperform” rating in a research note on Thursday. Truist Financial boosted their target price on Encompass Health from $100.00 to $104.00 and gave the stock a “buy” rating in a report on Thursday, August 15th. Barclays reduced their price target on Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a report on Tuesday, August 6th. Finally, UBS Group increased their price objective on shares of Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research report on Wednesday. Nine investment 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.com, Encompass Health currently has an average rating of “Buy” and a consensus target price of $102.88.

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.