Encompass Health (NYSE:EHC) Shares Gap Up Following Strong Earnings

Encompass Health Co. (NYSE:EHC)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $98.60, but opened at $102.36. Encompass Health shares last traded at $99.32, with a volume of 510,238 shares traded.

The company reported $1.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.12. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on EHC shares. StockNews.com cut Encompass Health from a “buy” rating to a “hold” rating in a report on Friday. Royal Bank of Canada lifted their target price on Encompass Health from $105.00 to $110.00 and gave the stock an “outperform” rating in a report on Wednesday, October 30th. William Blair restated an “outperform” rating on shares of Encompass Health in a report on Friday. Truist Financial restated a “buy” rating and set a $116.00 price objective (up previously from $108.00) on shares of Encompass Health in a report on Wednesday, October 30th. Finally, Barclays boosted their price objective on Encompass Health from $116.00 to $118.00 and gave the company an “overweight” rating in a report on Friday. One equities research analyst has rated the stock with a hold rating, nine have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $107.33.

Institutional Investors Weigh In On Encompass Health

Several hedge funds and other institutional investors have recently added to or reduced their stakes in EHC. CIBC Asset Management Inc lifted its holdings in shares of Encompass Health by 3.5% in the 3rd quarter. CIBC Asset Management Inc now owns 2,957 shares of the company’s stock valued at $286,000 after purchasing an additional 100 shares during the last quarter. Miracle Mile Advisors LLC grew its holdings in shares of Encompass Health by 3.0% in the 4th quarter. Miracle Mile Advisors LLC now owns 3,835 shares of the company’s stock worth $354,000 after acquiring an additional 112 shares during the period. US Bancorp DE lifted its stake in Encompass Health by 9.6% in the 4th quarter. US Bancorp DE now owns 1,380 shares of the company’s stock valued at $127,000 after buying an additional 121 shares in the last quarter. MassMutual Private Wealth & Trust FSB lifted its stake in shares of Encompass Health by 87.8% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 293 shares of the company’s stock worth $27,000 after purchasing an additional 137 shares during the period. Finally, V Square Quantitative Management LLC lifted its stake in shares of Encompass Health by 53.0% during the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock worth $39,000 after purchasing an additional 140 shares during the period. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health Trading Up 1.3 %

The company has a market cap of $10.06 billion, a PE ratio of 24.12, a price-to-earnings-growth ratio of 1.18 and a beta of 0.90. The business has a 50 day simple moving average of $96.28 and a two-hundred day simple moving average of $95.19. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.88.

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.