Encompass Health Co. (NYSE:EHC) Receives Average Recommendation of “Buy” from Brokerages

Shares of Encompass Health Co. (NYSE:EHC) have been assigned an average recommendation of “Buy” from the ten research firms that are currently covering the firm, Marketbeat reports. Eight investment analysts have rated the stock with a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $100.38.

A number of equities analysts have recently issued reports on the company. UBS Group upped their price objective on Encompass Health from $96.00 to $100.00 and gave the stock a “buy” rating in a report on Thursday, August 8th. Truist Financial increased their target price on Encompass Health from $100.00 to $104.00 and gave the company a “buy” rating in a report on Thursday, August 15th. Barclays dropped their target price on Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a report on Tuesday, August 6th. Leerink Partners started coverage on Encompass Health in a report on Wednesday, July 10th. They set an “outperform” rating and a $100.00 target price for the company. Finally, Stephens restated an “overweight” rating and set a $105.00 target price on shares of Encompass Health in a report on Tuesday, August 6th.

Encompass Health Stock Up 0.6 %

Shares of NYSE EHC opened at $92.65 on Friday. Encompass Health has a one year low of $57.55 and a one year high of $94.59. 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 business’s fifty day moving average price is $90.04 and its 200-day moving average price is $85.25. The stock has a market capitalization of $9.33 billion, a PE ratio of 25.04, a P/E/G ratio of 1.39 and a beta of 0.88.

Encompass Health (NYSE:EHC) last announced its earnings results on Monday, August 5th. The company reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.10. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.30 billion. During the same period in the prior year, the company earned $0.95 EPS. The company’s quarterly revenue was up 9.6% compared to the same quarter last year. On average, equities research analysts anticipate that Encompass Health will post 4.18 EPS for the current year.

Encompass Health declared that its board has authorized a share buyback plan on Wednesday, July 24th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Tuesday, October 1st will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 0.73%. The ex-dividend date is Tuesday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s dividend payout ratio (DPR) is 18.38%.

Insider Transactions at Encompass Health

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the business’s stock in a transaction 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 completion of the transaction, the chief financial officer now owns 136,227 shares in the company, valued at $11,761,839.18. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 2.10% of the company’s stock.

Institutional Trading of Encompass Health

Several large investors have recently modified their holdings of the company. Principal Securities Inc. bought a new stake in Encompass Health during the fourth quarter valued at about $25,000. Parallel Advisors LLC boosted its stake in shares of Encompass Health by 192.3% in the fourth quarter. Parallel Advisors LLC now owns 573 shares of the company’s stock worth $38,000 after acquiring an additional 377 shares during the period. Oakworth Capital Inc. bought a new position in shares of Encompass Health in the second quarter worth about $40,000. Benjamin F. Edwards & Company Inc. boosted its stake in shares of Encompass Health by 58.9% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock worth $46,000 after acquiring an additional 198 shares during the period. Finally, GAMMA Investing LLC boosted its stake in shares of Encompass Health by 31.9% in the first quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock worth $51,000 after acquiring an additional 149 shares during the period. Institutional investors own 97.25% of the company’s stock.

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.