Encompass Health (NYSE:EHC) Trading 4.4% Higher – Should You Buy?

Encompass Health Corporation (NYSE:EHC) traded up 4.4% on Friday . The company traded as high as $104.78 and last traded at $104.2150. 290,254 shares traded hands during trading, a decline of 73% from the average session volume of 1,087,874 shares. The stock had previously closed at $99.84.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. TD Cowen assumed coverage on Encompass Health in a research note on Thursday, May 28th. They set a “buy” rating and a $125.00 target price on the stock. Barclays lowered their price objective on Encompass Health from $153.00 to $140.00 and set an “overweight” rating on the stock in a research note on Tuesday, May 5th. Leerink Partners set a $152.00 price objective on Encompass Health in a research note on Friday, May 22nd. Finally, Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and an average price target of $143.86.

Encompass Health Stock Performance

The stock has a 50 day simple moving average of $103.79 and a 200 day simple moving average of $105.01. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. The stock has a market cap of $10.36 billion, a P/E ratio of 17.43, a price-to-earnings-growth ratio of 2.27 and a beta of 0.72.

Encompass Health (NYSE:EHC) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.09. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The company had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same quarter last year, the company posted $1.37 EPS. The company’s revenue for the quarter was up 9.0% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, equities analysts expect that Encompass Health Corporation will post 5.97 earnings per share for the current year.

Encompass Health Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be paid a $0.19 dividend. The ex-dividend date is Wednesday, July 1st. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. Encompass Health’s dividend payout ratio (DPR) is presently 12.69%.

Insider Buying and Selling at Encompass Health

In other news, Treasurer Edmund Fay sold 11,937 shares of Encompass Health stock in a transaction on Monday, March 9th. The stock was sold at an average price of $107.00, for a total value of $1,277,259.00. Following the transaction, the treasurer owned 89,325 shares in the company, valued at approximately $9,557,775. This trade represents a 11.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Patrick William Tuer sold 682 shares of Encompass Health stock in a transaction on Monday, May 11th. The shares were sold at an average price of $104.56, for a total value of $71,309.92. Following the completion of the transaction, the executive vice president owned 24,755 shares in the company, valued at approximately $2,588,382.80. The trade was a 2.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Hedge funds and other institutional investors have recently modified their holdings of the business. AlphaCore Capital LLC acquired a new stake in shares of Encompass Health during the 4th quarter valued at $4,881,000. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock valued at $402,640,000 after acquiring an additional 3,793,358 shares in the last quarter. Tudor Investment Corp ET AL boosted its holdings in shares of Encompass Health by 155.3% during the 3rd quarter. Tudor Investment Corp ET AL now owns 210,712 shares of the company’s stock valued at $26,765,000 after acquiring an additional 128,191 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Encompass Health by 5.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,410,335 shares of the company’s stock valued at $179,141,000 after acquiring an additional 70,387 shares in the last quarter. Finally, SG Americas Securities LLC boosted its holdings in shares of Encompass Health by 1,070.9% during the 4th quarter. SG Americas Securities LLC now owns 88,054 shares of the company’s stock valued at $9,346,000 after acquiring an additional 80,534 shares in the last quarter. Institutional investors own 97.25% of the company’s stock.

About Encompass Health

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.