Encompass Health Corporation (NYSE:EHC) Receives Average Rating of “Moderate Buy” from Analysts

Encompass Health Corporation (NYSE:EHC) has been assigned an average recommendation of “Moderate Buy” from the nine research firms that are covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $143.8571.

Several equities analysts have weighed in on the stock. Leerink Partners set a $152.00 target price on shares of Encompass Health in a report on Friday, May 22nd. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. TD Cowen initiated coverage on shares of Encompass Health in a research report on Thursday, May 28th. They set a “buy” rating and a $125.00 price target on the stock. Weiss Ratings cut Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, June 26th. Finally, Barclays lowered their price objective on Encompass Health from $153.00 to $140.00 and set an “overweight” rating for the company in a research report on Tuesday, May 5th.

Insider Buying and Selling at Encompass Health

In related news, EVP Patrick William Tuer sold 682 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $104.56, for a total transaction of $71,309.92. Following the completion of the sale, the executive vice president directly owned 24,755 shares of the company’s stock, valued at approximately $2,588,382.80. This trade represents a 2.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 1.80% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Royal Bank of Canada raised its stake in shares of Encompass Health by 21.5% in the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock valued at $8,960,000 after acquiring an additional 15,677 shares during the period. Millennium Management LLC boosted its position in shares of Encompass Health by 38.4% during the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock worth $9,338,000 after purchasing an additional 25,574 shares during the period. Caxton Associates LLP purchased a new position in shares of Encompass Health during the 1st quarter worth approximately $259,000. Walleye Capital LLC increased its holdings in Encompass Health by 667.6% in the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock valued at $800,000 after purchasing an additional 7,671 shares during the last quarter. Finally, Gamco Investors INC. ET AL acquired a new stake in Encompass Health in the 2nd quarter valued at approximately $588,000. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health Trading Up 0.2%

Shares of EHC stock opened at $111.27 on Wednesday. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. Encompass Health has a twelve month low of $92.77 and a twelve month high of $127.99. The company’s 50-day moving average price is $105.76 and its 200-day moving average price is $104.06. The stock has a market cap of $11.04 billion, a price-to-earnings ratio of 18.58, a PEG ratio of 2.42 and a beta of 0.72.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The firm had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same period last year, the business earned $1.37 earnings per share. Encompass Health’s revenue was up 9.0% compared to the same quarter last year. As a group, equities analysts predict that Encompass Health will post 5.96 earnings per share for the current year.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a $0.21 dividend. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 annualized dividend and a dividend yield of 0.8%. Encompass Health’s dividend payout ratio is currently 12.69%.

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.