Encompass Health (NYSE:EHC) Hits New 12-Month High – Should You Buy?

Shares of Encompass Health Corporation (NYSE:EHC) reached a new 52-week high during mid-day trading on Wednesday. The company traded as high as $139.27 and last traded at $139.51, with a volume of 169,810 shares trading hands. The stock had previously closed at $134.79.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Truist Financial reiterated a “buy” rating and set a $156.00 target price (up from $150.00) on shares of Encompass Health in a report on Friday, October 30th. Barclays upped their price target on Encompass Health from $144.00 to $151.00 and gave the stock an “overweight” rating in a report on Thursday, October 29th. UBS Group increased their price objective on shares of Encompass Health from $155.00 to $165.00 and gave the company a “buy” rating in a research report on Friday, October 30th. TD Cowen lifted their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, October 30th. Finally, Weiss Ratings raised shares of Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $154.25.

Encompass Health Trading Down 2.7%

The company has a current ratio of 1.09, a quick ratio of 1.19 and a debt-to-equity ratio of 0.73. The business’s 50-day simple moving average is $124.34 and its two-hundred day simple moving average is $110.74. The company has a market capitalization of $13.56 billion, a PE ratio of 21.48, a PEG ratio of 2.46 and a beta of 0.83.

Encompass Health (NYSE:EHC) last announced its earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.16. Encompass Health had a return on equity of 18.35% and a net margin of 10.17%. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same period last year, the firm earned $1.23 earnings per share. The company’s revenue was up 8.9% on a year-over-year basis. On average, analysts predict that Encompass Health Corporation will post 6.26 earnings per share for the current year.

Encompass Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Monday, January 4th will be issued a dividend of $0.21 per share. The ex-dividend date is Monday, January 4th. This represents a $0.84 annualized dividend and a yield of 0.6%. Encompass Health’s payout ratio is currently 13.12%.

Insider Buying and Selling

In other news, EVP John Darby sold 8,906 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,451,413.95. This trade represents a 10.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction 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 completion of the sale, the chief executive officer owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 186,912 shares of company stock worth $23,434,845. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Allworth Financial LP boosted its holdings in shares of Encompass Health by 10.3% in the 3rd quarter. Allworth Financial LP now owns 1,366 shares of the company’s stock valued at $166,000 after buying an additional 127 shares during the period. Russell Investments Group Ltd. raised its stake in Encompass Health by 6.5% during the third quarter. Russell Investments Group Ltd. now owns 108,357 shares of the company’s stock worth $13,165,000 after acquiring an additional 6,588 shares during the period. Maryland State Retirement & Pension System raised its stake in Encompass Health by 26.9% during the third quarter. Maryland State Retirement & Pension System now owns 6,554 shares of the company’s stock worth $796,000 after acquiring an additional 1,390 shares during the period. Jefferies Financial Group Inc. lifted its holdings in Encompass Health by 114.9% in the third quarter. Jefferies Financial Group Inc. now owns 14,684 shares of the company’s stock worth $1,784,000 after acquiring an additional 7,852 shares during the last quarter. Finally, Bahl & Gaynor LLC lifted its holdings in Encompass Health by 25.0% in the third quarter. Bahl & Gaynor LLC now owns 921,908 shares of the company’s stock worth $112,003,000 after acquiring an additional 184,230 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors.

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.