Aristeia Capital L.L.C. Buys New Holdings in Encompass Health Co. (NYSE:EHC)

Aristeia Capital L.L.C. purchased a new position in Encompass Health Co. (NYSE:EHC) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 4,240 shares of the company’s stock, valued at approximately $364,000.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Principal Securities Inc. bought a new position in shares of Encompass Health in the 4th quarter worth $25,000. Parallel Advisors LLC grew 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 buying an additional 377 shares during the last quarter. Oakworth Capital Inc. bought a new stake in shares of Encompass Health during the second quarter worth about $40,000. Benjamin F. Edwards & Company Inc. raised its holdings in shares of Encompass Health by 58.9% in the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock worth $46,000 after acquiring an additional 198 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in Encompass Health by 31.9% in the 1st quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock valued at $51,000 after acquiring an additional 149 shares in the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

Insider Buying and Selling

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of the business’s stock in a transaction on Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following 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 Securities & Exchange Commission, which is available at this hyperlink. 2.10% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Stephens reissued an “overweight” rating and set a $105.00 price objective on shares of Encompass Health in a report on Tuesday, August 6th. Truist Financial upped their price target on Encompass Health from $100.00 to $104.00 and gave the stock a “buy” rating in a report on Thursday, August 15th. Leerink Partners began coverage on Encompass Health in a research note on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective on the stock. Leerink Partnrs raised Encompass Health to a “strong-buy” rating in a report on Wednesday, July 10th. Finally, UBS Group lifted their price target on Encompass Health from $96.00 to $100.00 and gave the stock a “buy” rating in a report on Thursday, August 8th. Nine investment analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $100.38.

Encompass Health Price Performance

Shares of NYSE EHC opened at $95.26 on Wednesday. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08. The stock has a fifty day simple moving average of $90.35 and a two-hundred day simple moving average of $85.62. Encompass Health Co. has a 1-year low of $57.55 and a 1-year high of $95.96. The firm has a market cap of $9.59 billion, a price-to-earnings ratio of 25.75, a price-to-earnings-growth ratio of 1.41 and a beta of 0.88.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Monday, August 5th. The company reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.10. The company had revenue of $1.30 billion during 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 firm’s revenue for the quarter was up 9.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.95 EPS. Analysts anticipate that Encompass Health Co. will post 4.18 earnings per share for the current year.

Encompass Health declared that its board has authorized a share buyback plan on Wednesday, July 24th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to buy up to 5.4% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Tuesday, October 1st will be paid a dividend of $0.17 per share. This is a boost 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 dividend payout ratio is presently 16.22%.

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.