Encompass Health Co. (NYSE:EHC) Short Interest Update

by · The Markets Daily

Encompass Health Co. (NYSE:EHC – Get Free Report) was the target of a significant decline in short interest during the month of September. As of September 15th, there was short interest totalling 1,160,000 shares, a decline of 10.1% from the August 31st total of 1,290,000 shares. Based on an average daily trading volume, of 643,300 shares, the days-to-cover ratio is presently 1.8 days. Currently, 1.2% of the company’s stock are short sold.

Encompass Health Stock Performance

Encompass Health stock traded down $0.90 during trading on Tuesday, reaching $95.74. The company had a trading volume of 350,875 shares, compared to its average volume of 640,037. The firm’s 50-day simple moving average is $91.39 and its 200 day simple moving average is $86.35. Encompass Health has a 52 week low of $57.55 and a 52 week high of $97.56. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08. The firm has a market capitalization of $9.64 billion, a price-to-earnings ratio of 25.88, a price-to-earnings-growth ratio of 1.41 and a beta of 0.88.

Encompass Health (NYSE:EHC – Get Free Report) last announced its quarterly earnings data on Monday, August 5th. The company reported $1.11 earnings per share (EPS) for the quarter, beating 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 company had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the previous year, the company posted $0.95 EPS. The firm’s revenue was up 9.6% on a year-over-year basis. Sell-side analysts forecast that Encompass Health will post 4.18 earnings per share for the current fiscal year.

Encompass Health announced that its board has initiated a stock repurchase plan on Wednesday, July 24th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 5.4% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Tuesday, October 1st will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 0.71%. The ex-dividend date is Tuesday, October 1st. This is an increase from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s dividend payout ratio (DPR) is 18.38%.

Insider Buying and Selling at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the stock in a transaction dated Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the sale, the chief financial officer now directly owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Encompass Health

Several hedge funds have recently modified their holdings of the stock. Commonwealth Equity Services LLC lifted its stake in Encompass Health by 1.3% in the 2nd quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company’s stock worth $845,000 after purchasing an additional 123 shares in the last quarter. Legacy Wealth Asset Management LLC boosted its stake in Encompass Health by 1.5% during the first quarter. Legacy Wealth Asset Management LLC now owns 8,619 shares of the company’s stock valued at $712,000 after buying an additional 130 shares during the last quarter. Smith Group Asset Management LLC grew its holdings in Encompass Health by 1.2% during the 1st quarter. Smith Group Asset Management LLC now owns 12,070 shares of the company’s stock valued at $997,000 after buying an additional 140 shares in the last quarter. GAMMA Investing LLC increased its stake in Encompass Health by 31.9% in the 1st quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock worth $51,000 after acquiring an additional 149 shares during the last quarter. Finally, O Shaughnessy Asset Management LLC raised its holdings in shares of Encompass Health by 3.9% during the 1st quarter. O Shaughnessy Asset Management LLC now owns 4,246 shares of the company’s stock worth $351,000 after acquiring an additional 160 shares in the last quarter. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on EHC. Royal Bank of Canada boosted their price target on Encompass Health from $95.00 to $105.00 and gave the stock an “outperform” rating in a research note on Thursday, September 26th. UBS Group upped their target price on shares of Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research note on Wednesday, September 25th. Barclays reduced their price target on shares of Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a research note on Tuesday, August 6th. Truist Financial raised their target price on shares of Encompass Health from $100.00 to $104.00 and gave the stock a “buy” rating in a report on Thursday, August 15th. Finally, Leerink Partners assumed coverage on shares of Encompass Health in a research note on Wednesday, July 10th. They set an “outperform” rating and a $100.00 target price for the company. Nine research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $102.88.

Check Out Our Latest Stock Report on Encompass Health

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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