Encompass Health (NYSE:EHC) Reaches New 52-Week High Following Strong Earnings

Encompass Health Co. (NYSE:EHC)’s stock price reached a new 52-week high on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $85.01 and last traded at $85.01, with a volume of 434 shares changing hands. The stock had previously closed at $82.80.

The company reported $1.12 earnings per share for the quarter, beating analysts’ consensus estimates of $0.93 by $0.19. Encompass Health had a net margin of 7.33% and a return on equity of 17.69%. The business had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period in the previous year, the business earned $0.88 EPS. The company’s quarterly revenue was up 13.4% compared to the same quarter last year.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, April 15th. Shareholders of record on Monday, April 1st were given a dividend of $0.15 per share. The ex-dividend date of this dividend was Thursday, March 28th. This represents a $0.60 annualized dividend and a dividend yield of 0.71%. Encompass Health’s dividend payout ratio (DPR) is presently 17.29%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on EHC shares. Truist Financial raised their price objective on Encompass Health from $82.00 to $86.00 and gave the stock a “buy” rating in a research report on Friday, February 9th. Stephens restated an “overweight” rating and set a $85.00 price objective on shares of Encompass Health in a research report on Tuesday, January 16th. William Blair reaffirmed an “outperform” rating on shares of Encompass Health in a research report on Wednesday, February 7th. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $83.00 price target on shares of Encompass Health in a report on Friday, February 9th. Finally, Mizuho increased their price target on Encompass Health from $93.00 to $95.00 and gave the stock a “buy” rating in a report on Thursday. Eight equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, Encompass Health presently has an average rating of “Buy” and an average price target of $84.67.

Institutional Investors Weigh In On Encompass Health

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its stake in Encompass Health by 4.7% during the fourth quarter. Vanguard Group Inc. now owns 9,997,034 shares of the company’s stock valued at $667,002,000 after acquiring an additional 450,081 shares in the last quarter. Wellington Management Group LLP raised its stake in shares of Encompass Health by 5.8% in the fourth quarter. Wellington Management Group LLP now owns 8,215,770 shares of the company’s stock worth $548,156,000 after purchasing an additional 449,230 shares during the last quarter. William Blair Investment Management LLC lifted its holdings in shares of Encompass Health by 6.4% during the 3rd quarter. William Blair Investment Management LLC now owns 5,676,379 shares of the company’s stock valued at $381,226,000 after buying an additional 342,512 shares during the period. Invesco Ltd. raised its position in Encompass Health by 22.3% in the third quarter. Invesco Ltd. now owns 3,974,306 shares of the company’s stock worth $266,914,000 after acquiring an additional 724,544 shares during the period. Finally, TD Asset Management Inc raised its position in shares of Encompass Health by 239.6% during the 4th quarter. TD Asset Management Inc now owns 1,969,186 shares of the company’s stock valued at $131,384,000 after purchasing an additional 1,389,275 shares during the period. Institutional investors own 97.25% of the company’s stock.

Encompass Health Stock Performance

The company has a market capitalization of $8.41 billion, a P/E ratio of 23.84, a P/E/G ratio of 1.53 and a beta of 0.94. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.28 and a current ratio of 1.28. The business’s fifty day simple moving average is $77.89 and its 200-day simple moving average is $70.67.

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.