5 Recent Spin-off Companies That Hedge Funds Are Piling Into

3. Enhabit, Inc. (NYSE:EHAB)

Number of Hedge Fund Holders: 29

Enhabit, Inc. (NYSE:EHAB) is a Texas-based company that provides home health and hospice services in the United States. On July 1, Encompass Health Corporation (NYSE:EHC) announced that it has completed the spin-off of 100% of Enhabit, Inc. (NYSE:EHAB), its home health and hospice business. It is one of the top spin-off stocks on the radar of smart investors. 

On December 5, Stifel analyst Tao Qiu started coverage of Enhabit, Inc. (NYSE:EHAB) with a Buy rating and a $17 price target. The company has established itself as a top provider in 17 states by acquiring and starting new operations, becoming the fourth largest provider of skilled home health services, the analyst informed investors. 

According to Insider Monkey’s data, 29 hedge funds were bullish on Enhabit, Inc. (NYSE:EHAB) at the end of September 2022, compared to 3 funds in the prior quarter. The collective stakes in Q3 2022 came in $171 million, up from $711,000. 

Aristotle Capital made the following comment about Enhabit, Inc. (NYSE:EHAB) in its Q3 2022 investor letter:

“Enhabit, Inc. (NYSE:EHAB), a provider of home health and hospice services, was added to the portfolio by virtue of its spin-off from existing holding Encompass Health. We maintain a position, as we believe the company should benefit from aging demographic trends that can increase demand for the company’s services.”