Encompass Health (NYSE:EHC) Issues Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Encompass Health (NYSE:EHC) released its quarterly earnings results on Wednesday. The company reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.16, Zacks reports. The firm had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The firm’s quarterly revenue was up 8.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.23 EPS.

Encompass Health Stock Up 6.9%

NYSE EHC traded up $8.44 on Thursday, hitting $130.53. 1,054,288 shares of the stock traded hands, compared to its average volume of 1,043,865. The stock has a 50-day moving average of $122.39 and a 200 day moving average of $109.67. Encompass Health has a twelve month low of $92.77 and a twelve month high of $133.75. The company has a market capitalization of $12.88 billion, a P/E ratio of 21.28, a price-to-earnings-growth ratio of 2.51 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.

Encompass Health Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be issued a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Monday, January 4th. Encompass Health’s payout ratio is currently 13.68%.

Insider Activity at Encompass Health

In related news, CEO Mark J. Tarr sold 173,148 shares of the company’s stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP John Darby sold 8,906 shares of the firm’s 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 transaction, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. This trade represents a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 186,912 shares of company stock valued at $23,434,845. Insiders own 1.80% of the company’s stock.

Analysts Set New Price Targets

EHC has been the topic of a number of analyst reports. Barclays lifted their target price on Encompass Health from $144.00 to $151.00 and gave the stock an “overweight” rating in a research report on Thursday. TD Cowen raised their price objective on Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, August 10th. Raymond James Financial set a $150.00 price objective on Encompass Health in a report on Monday, September 28th. Weiss Ratings raised Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Finally, Truist Financial upped their target price on Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, Encompass Health presently has an average rating of “Buy” and an average price target of $149.67.

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.