Encompass Health (NYSE:EHC) Reaches New 1-Year High – What’s Next?

by · The Markets Daily

Encompass Health Co. (NYSE:EHC – Get Free Report)’s stock price reached a new 52-week high on Wednesday . The company traded as high as $98.32 and last traded at $98.27, with a volume of 73699 shares. The stock had previously closed at $96.33.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. KeyCorp started coverage on shares of Encompass Health in a research report on Friday, October 11th. They issued an “overweight” rating and a $115.00 target price for the company. Leerink Partners initiated coverage on shares of Encompass Health in a research report on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective for the company. Leerink Partnrs upgraded shares of Encompass Health to a “strong-buy” rating in a research report on Wednesday, July 10th. Stephens restated an “overweight” rating and set a $105.00 price objective on shares of Encompass Health in a research report on Tuesday, August 6th. Finally, UBS Group upped their price target on shares of Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, September 25th. Eight research analysts have rated the stock with a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat.com, Encompass Health presently has an average rating of “Buy” and a consensus price target of $104.67.

View Our Latest Research Report on EHC

Encompass Health Trading Up 1.6 %

The business’s 50 day moving average is $92.18 and its two-hundred day moving average is $87.54. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.08. The firm has a market capitalization of $9.85 billion, a P/E ratio of 26.11, a PEG ratio of 1.43 and a beta of 0.88.

Encompass Health (NYSE:EHC – Get Free Report) last issued its quarterly earnings results on Monday, August 5th. The company reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.10. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The firm had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter last year, the business posted $0.95 EPS. Encompass Health’s revenue was up 9.6% on a year-over-year basis. Analysts expect that Encompass Health Co. will post 4.18 EPS for the current year.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st were issued a dividend of $0.17 per share. The ex-dividend date was Tuesday, October 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.69%. This is an increase from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s dividend payout ratio (DPR) is currently 18.38%.

Encompass Health declared that its board has initiated a share repurchase plan on Wednesday, July 24th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Activity at Encompass Health

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of the firm’s stock in a transaction on Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total value of $1,058,528.40. Following the sale, the chief financial officer now directly owns 136,227 shares in the company, valued at $11,761,839.18. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 2.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Encompass Health

A number of institutional investors have recently modified their holdings of EHC. Goldman Sachs Group Inc. grew its holdings in Encompass Health by 379.7% during the fourth quarter. Goldman Sachs Group Inc. now owns 578,349 shares of the company’s stock valued at $38,587,000 after purchasing an additional 457,796 shares during the period. Vanguard Group Inc. raised its position in Encompass Health by 4.7% during the fourth quarter. Vanguard Group Inc. now owns 9,997,034 shares of the company’s stock worth $667,002,000 after acquiring an additional 450,081 shares in the last quarter. CWM LLC raised its position in Encompass Health by 5.7% during the first quarter. CWM LLC now owns 6,009 shares of the company’s stock worth $496,000 after acquiring an additional 326 shares in the last quarter. GAMMA Investing LLC increased its holdings in shares of Encompass Health by 31.9% in the first quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock valued at $51,000 after purchasing an additional 149 shares during the last quarter. Finally, Gibson Capital LLC acquired a new position in shares of Encompass Health in the first quarter valued at $203,000. 97.25% of the stock is owned by institutional investors.

Encompass Health Company Profile

(Get Free Report)

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.

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