Encompass Health Co. (NYSE:EHC) Sees Large Decline in Short Interest

Encompass Health Co. (NYSE:EHC) was the target of a significant decrease in short interest in the month of August. As of August 31st, there was short interest totalling 1,290,000 shares, a decrease of 15.7% from the August 15th total of 1,530,000 shares. Based on an average daily volume of 645,700 shares, the days-to-cover ratio is presently 2.0 days. Currently, 1.3% of the company’s stock are short sold.

Insiders Place Their Bets

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the business’s stock in a transaction that occurred on Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value of $1,058,528.40. Following the sale, the chief financial officer now directly owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Institutional investors and hedge funds have recently bought and sold shares of the stock. M&T Bank Corp purchased a new position in Encompass Health during the fourth quarter valued at approximately $201,000. Charles Schwab Investment Management Inc. lifted its stake in shares of Encompass Health by 2.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 631,816 shares of the company’s stock valued at $42,155,000 after buying an additional 12,396 shares in the last quarter. Principal Securities Inc. bought a new position in Encompass Health in the 4th quarter worth $25,000. QRG Capital Management Inc. increased its stake in Encompass Health by 10.4% in the 4th quarter. QRG Capital Management Inc. now owns 6,271 shares of the company’s stock worth $418,000 after buying an additional 593 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in shares of Encompass Health by 12.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,764,092 shares of the company’s stock valued at $117,703,000 after acquiring an additional 190,860 shares in the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Stock Performance

Encompass Health stock traded up $1.12 during mid-day trading on Wednesday, reaching $92.44. 464,335 shares of the stock traded hands, compared to its average volume of 630,917. Encompass Health has a 12-month low of $57.55 and a 12-month high of $94.59. The business’s 50-day moving average is $89.80 and its 200-day moving average is $85.08. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.35 and a quick ratio of 1.35. The stock has a market capitalization of $9.31 billion, a PE ratio of 24.98, a price-to-earnings-growth ratio of 1.39 and a beta of 0.88.

Encompass Health (NYSE:EHC) last issued its quarterly earnings data on Monday, August 5th. The company reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.10. The firm had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.30 billion. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The business’s quarterly revenue was up 9.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.95 EPS. As a group, sell-side analysts predict that Encompass Health will post 4.18 EPS for the current fiscal year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st will be paid a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 0.74%. This is a positive change from Encompass Health’s previous quarterly dividend of $0.15. The ex-dividend date is Tuesday, October 1st. Encompass Health’s dividend payout ratio is 18.38%.

Analyst Ratings Changes

Several analysts recently commented on the stock. Royal Bank of Canada increased their price objective on shares of Encompass Health from $83.00 to $95.00 and gave the company an “outperform” rating in a research report on Wednesday, May 22nd. Barclays reduced their price target on shares of Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a research report on Tuesday, August 6th. Leerink Partners started coverage on Encompass Health in a research note on Wednesday, July 10th. They set an “outperform” rating and a $100.00 target price on the stock. Stephens reissued an “overweight” rating and issued a $105.00 target price on shares of Encompass Health in a report on Tuesday, August 6th. Finally, UBS Group upped their price target on Encompass Health from $96.00 to $100.00 and gave the company a “buy” rating in a report on Thursday, August 8th. Nine research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, Encompass Health currently has a consensus rating of “Buy” and an average target price of $100.38.

Encompass Health Company Profile

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.