Encompass Health Co. (NYSE:EHC) Given Average Rating of “Buy” by Brokerages

Encompass Health Co. (NYSE:EHC) has earned an average recommendation of “Buy” from the eight research firms that are covering the firm, MarketBeat reports. Seven investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $92.00.

A number of brokerages have recently commented on EHC. Truist Financial upped their target price on Encompass Health from $82.00 to $86.00 and gave the stock a “buy” rating in a research note on Friday, February 9th. William Blair reiterated an “outperform” rating on shares of Encompass Health in a research note on Wednesday, February 7th. Barclays lifted their price objective on shares of Encompass Health from $101.00 to $108.00 and gave the company an “overweight” rating in a report on Thursday, April 25th. Royal Bank of Canada increased their target price on shares of Encompass Health from $83.00 to $95.00 and gave the stock an “outperform” rating in a research note on Wednesday. Finally, Mizuho lifted their price target on Encompass Health from $93.00 to $95.00 and gave the company a “buy” rating in a research note on Thursday, April 25th.

Encompass Health Price Performance

Shares of NYSE:EHC opened at $84.49 on Monday. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.14. Encompass Health has a twelve month low of $57.55 and a twelve month high of $87.94. The company’s 50 day moving average is $82.21 and its 200 day moving average is $73.94. The company has a market cap of $8.51 billion, a PE ratio of 22.84, a price-to-earnings-growth ratio of 1.33 and a beta of 0.92.

Encompass Health (NYSE:EHC) last issued its earnings results on Wednesday, April 24th. The company reported $1.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.19. Encompass Health had a net margin of 7.60% and a return on equity of 18.01%. The firm had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter last year, the company posted $0.88 earnings per share. The firm’s revenue was up 13.4% compared to the same quarter last year. On average, sell-side analysts forecast that Encompass Health will post 4.1 EPS for the current year.

Encompass Health Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 15th. Shareholders of record on Monday, July 1st will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, June 28th. This represents a $0.60 annualized dividend and a yield of 0.71%. Encompass Health’s dividend payout ratio (DPR) is currently 16.22%.

Insider Activity

In related news, insider Elissa Joy Charbonneau sold 10,000 shares of the business’s stock in a transaction that occurred on Friday, May 24th. The stock was sold at an average price of $85.02, for a total transaction of $850,200.00. Following the completion of the sale, the insider now directly owns 18,594 shares in the company, valued at $1,580,861.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, Director Greg D. Carmichael purchased 2,000 shares of the company’s stock in a transaction dated Friday, May 3rd. The stock was acquired at an average cost of $83.73 per share, for a total transaction of $167,460.00. Following the completion of the transaction, the director now directly owns 17,050 shares of the company’s stock, valued at $1,427,596.50. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Elissa Joy Charbonneau sold 10,000 shares of the stock in a transaction that occurred on Friday, May 24th. The shares were sold at an average price of $85.02, for a total value of $850,200.00. Following the completion of the sale, the insider now directly owns 18,594 shares of the company’s stock, valued at approximately $1,580,861.88. The disclosure for this sale can be found here. Insiders have sold a total of 69,519 shares of company stock worth $5,816,091 over the last quarter. 2.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Encompass Health

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Legacy Wealth Asset Management LLC grew its holdings in shares of Encompass Health by 1.5% in the first quarter. Legacy Wealth Asset Management LLC now owns 8,619 shares of the company’s stock valued at $712,000 after purchasing an additional 130 shares during the period. Smith Group Asset Management LLC grew its stake in shares of Encompass Health by 1.2% in 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 during the period. Benjamin Edwards Inc. increased its holdings in shares of Encompass Health by 3.8% during the 4th quarter. Benjamin Edwards Inc. now owns 3,885 shares of the company’s stock worth $259,000 after buying an additional 142 shares during the last quarter. Horrell Capital Management Inc. raised its position in shares of Encompass Health by 0.5% during the 1st quarter. Horrell Capital Management Inc. now owns 29,371 shares of the company’s stock valued at $2,425,000 after buying an additional 147 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in 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 acquiring an additional 149 shares during the last quarter. 97.25% of the stock is owned by institutional investors and hedge funds.

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.