Encompass Health (NYSE:EHC) Sets New 52-Week High – What’s Next?

Shares of Encompass Health Corporation (NYSE:EHC) hit a new 52-week high during trading on Thursday. The company traded as high as $129.96 and last traded at $128.92, with a volume of 30,873 shares traded. The stock had previously closed at $126.56.

Analyst Ratings Changes

Several research analysts recently commented on EHC shares. Truist Financial increased their target price on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Weiss Ratings upgraded shares of Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research report on Saturday, September 26th. Raymond James Financial set a $150.00 price objective on shares of Encompass Health in a research note on Monday, September 28th. Finally, Barclays increased their price objective on shares of Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a research note on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $148.50.

Encompass Health Trading Up 1.3%

The company has a market cap of $12.65 billion, a P/E ratio of 20.90, a PEG ratio of 2.52 and a beta of 0.74. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. The business has a 50 day moving average price of $122.40 and a 200-day moving average price of $111.24.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%. The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter in the prior year, the firm posted $1.40 EPS. The firm’s revenue for the quarter was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Analysts forecast that Encompass Health Corporation will post 6.08 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be given a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 0.7%. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health’s payout ratio is currently 13.68%.

Insiders Place Their Bets

In other news, EVP John Darby sold 4,858 shares of Encompass Health stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $121.09, for a total value of $588,255.22. Following the completion of the transaction, the executive vice president owned 75,041 shares of the company’s stock, valued at $9,086,714.69. This trade represents a 6.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Mark J. Tarr sold 173,148 shares of the business’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the transaction, the chief executive officer owned 267,814 shares in the company, valued at $33,602,622.58. This represents a 39.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 186,912 shares of company stock valued at $23,434,845. Corporate insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

Several hedge funds have recently bought and sold shares of EHC. BlackRock Inc. acquired a new position in Encompass Health during the second quarter worth approximately $1,059,762,000. William Blair Investment Management LLC acquired a new stake in shares of Encompass Health in the second quarter valued at approximately $116,352,000. Bank of New York Mellon Corp acquired a new stake in shares of Encompass Health in the second quarter valued at approximately $81,676,000. Bank of America Corp DE bought a new position in shares of Encompass Health during the 2nd quarter worth approximately $79,660,000. Finally, Freestone Grove Partners LP bought a new position in shares of Encompass Health during the 2nd quarter worth approximately $38,677,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

About Encompass Health

Encompass Health Corporation (NYSE:EHC) is a healthcare services company focused on inpatient rehabilitation. Through its network of rehabilitation hospitals, the company provides intensive medical and therapeutic care to patients recovering from conditions such as strokes, brain and spinal cord injuries, hip fractures, amputations, neurological disorders, and other disabling illnesses or injuries.

Its rehabilitation hospitals offer coordinated care from physicians, nurses, therapists, and other healthcare professionals.