Braun Stacey Associates Boosts Encompass Health Stake 9.3% to $28.4M in Q3
Braun Stacey Associates Inc. lifted its Q3 stake in Encompass Health by 9.3%, adding 18,967 shares to reach 223,673 shares valued at $28.4 million. Norges Bank initiated a new position worth $139.5 million and Congress Asset Management opened a $92.7 million stake, boosting total institutional ownership to 97.25%.
1. Ethic Inc Acquisition
In the third quarter, Ethic Inc. initiated a new position in Encompass Health Corporation by acquiring 10,017 shares, representing an investment of approximately $1.27 million. This marks Ethic Inc.’s first disclosed stake in the company, as reported in its most recent Form 13F filing with the SEC. The size of this purchase places Ethic Inc. among the company’s notable new institutional shareholders for the quarter.
2. Institutional Investor Activity
Several other institutions also adjusted their holdings during the same period. Newbridge Financial Services Group more than doubled its stake, increasing holdings by 112.5% to 425 shares. Parkside Financial Bank & Trust expanded its position by 179.5%, adding 307 shares for a total of 478. Park Place Capital Corp and the Employees Retirement System of Texas established new positions valued at roughly $72,000 and $57,000, respectively. TD Waterhouse Canada executed a dramatic increase of 68,000%, raising its stake from 1 to 681 shares. Collectively, hedge funds and other institutional investors now own 97.25% of Encompass Health’s outstanding shares.
3. Analyst Outlook
Wall Street sentiment has shifted bullish over the past quarter. UBS Group raised its target by $10 and maintained a buy recommendation, while Raymond James upgraded to strong-buy. KeyCorp and Barclays each increased their price objectives by $5 and reiterated overweight ratings. Wall Street Zen moved the stock from hold to buy, bringing the consensus to two strong-buy, eight buy and one hold rating. Based on MarketBeat data, Encompass Health carries an average analyst target of $142.86.
4. Recent Financial Performance
In its latest quarterly release, Encompass Health reported revenue of $136.3 million and earnings per share of $0.93, generating a net margin of 9.33% and a return on equity of 17.84%. The company’s debt-to-equity ratio stands at 0.76, with both current and quick ratios at 1.14, underscoring a balanced liquidity position. For full-year guidance, management projects EPS between $3.83 and $4.19, while consensus forecasts point to $4.80 for the current fiscal year. Additionally, an upcoming quarterly dividend of $0.19 per share was declared, equivalent to a 0.7% annual yield and a 14.37% payout ratio.