Braun Stacey Scales Up to $28.4M Stake While UBS, Barclays Set $150 Price Targets
Braun Stacey Associates raised its Encompass Health Q3 stake by 9.3% to 223,673 shares valued at $28.4 million, while Ethic Inc. added 10,017 shares worth $1.27 million. UBS and Barclays lifted price targets to $150 and analysts maintain a consensus target of $142.86.
1. Ethic Inc. Acquires Strategic Stake in Encompass Health
In the third quarter, Ethic Inc. filed a new position in Encompass Health Corporation, purchasing 10,017 shares valued at approximately 1.27 million dollars, according to its latest Form 13F submission. This represents Ethic’s initial exposure to the post-acute healthcare provider and positions the firm among the top 10 institutional shareholders by recent inflows into Encompass Health stock. The acquisition underscores Ethic’s confidence in the company’s expanding network of inpatient rehabilitation hospitals and home health services across more than 30 states.
2. Broader Institutional Activity Highlights Growing Confidence
Several other institutions materially adjusted their stakes during the same reporting period. Newbridge Financial Services Group more than doubled its position, adding 225 shares for a total of 425 shares, while Parkside Financial Bank & Trust increased holdings by 179.5% to 478 shares. Employees Retirement System of Texas and Park Place Capital each initiated new positions valued below 75,000 dollars, and TD Waterhouse Canada multiplied its stake by a factor of 680. Collectively, hedge funds and institutional investors now control over 97% of Encompass Health’s outstanding common stock, reflecting broad confidence in the company’s growth trajectory and defensive characteristics.
3. Analyst Community Maintains Positive Ratings and Earnings Outlook
Research firms collectively rate Encompass Health as a ‘Buy,’ with two designations at ‘Strong Buy’ and one ‘Hold.’ Recent guidance from Wall Street includes raised outlooks by UBS Group, Raymond James and KeyCorp, with emphasis on the company’s consistent revenue growth—136.3 million dollars in the latest quarterly results—and solid profitability metrics, including a net margin above 9% and return on equity near 18%. Encompass Health’s full-year EPS guidance range of 3.83 to 4.19 underscores management’s confidence in sustained free cash flow generation, and dividend policy remains conservative, with a payout ratio under 15%.