Encompass Health (NYSE:EHC) Sets New 52-Week High on Strong Earnings

Encompass Health Corporation (NYSE:EHC)’s share price hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The company traded as high as $133.75 and last traded at $128.1350, with a volume of 224,982 shares. The stock had previously closed at $122.09.

The company reported $1.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.16. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%. Encompass Health’s revenue was up 8.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.23 EPS.

Encompass Health Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Monday, January 4th will be given a $0.21 dividend. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, January 4th. Encompass Health’s dividend payout ratio is currently 13.68%.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. TD Cowen lifted their target price on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Raymond James Financial set a $150.00 price objective on Encompass Health in a report on Monday, September 28th. Barclays reaffirmed an “overweight” rating and issued a $151.00 price objective on shares of Encompass Health in a report on Thursday. Truist Financial raised their price target on Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Finally, Wall Street Zen lowered Encompass Health from a “buy” rating to a “hold” rating in a report on Saturday, October 17th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $149.67.

Insider Activity at Encompass Health

In related news, CEO Mark J. Tarr sold 173,148 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the transaction, the chief executive officer directly owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP John Darby sold 8,906 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 186,912 shares of company stock worth $23,434,845. 1.80% of the stock is currently owned by insiders.

Institutional Trading of Encompass Health

Several large investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of Encompass Health during the 2nd quarter valued at about $1,059,762,000. Dimensional Fund Advisors LP raised its holdings in shares of Encompass Health by 3.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,674,784 shares of the company’s stock valued at $162,013,000 after buying an additional 50,647 shares during the last quarter. William Blair Investment Management LLC bought a new stake in Encompass Health during the 2nd quarter worth about $116,352,000. Arrowstreet Capital Limited Partnership grew its holdings in Encompass Health by 1.6% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,182,574 shares of the company’s stock worth $114,390,000 after acquiring an additional 18,740 shares during the last quarter. Finally, Copeland Capital Management LLC increased its position in Encompass Health by 16.8% in the 1st quarter. Copeland Capital Management LLC now owns 892,823 shares of the company’s stock valued at $86,363,000 after acquiring an additional 128,120 shares in the last quarter. 97.25% of the stock is owned by institutional investors.

Encompass Health Stock Performance

The stock’s 50 day simple moving average is $122.39 and its two-hundred day simple moving average is $109.67. The company has a market capitalization of $12.63 billion, a P/E ratio of 20.92, a P/E/G ratio of 2.51 and a beta of 0.74. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19.

About Encompass Health

Encompass Health Corporation (NYSE:EHC) is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company’s services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.