Encompass Health Corporation (EHC) - What Are Analysts Thinking About This Stock?

Key Points

• Analyst sentiment is broadly positive: Six of eight covering firms rate Encompass Health a buy, one rates it a strong buy and one recommends holding; the average 12-month price target is $154.25.
• Quarterly results beat estimates: Encompass Health reported EPS of $1.52 versus the $1.36 consensus and revenue of $1.61 billion, up 8.9% year over year.
• The company declared a quarterly dividend of $0.21 per share, equivalent to $0.84 annually and a 0.6% yield. Insiders sold about 186,900 shares worth $23.4 million over the past three months.

Shares of Encompass Health Corporation (NYSE:EHC - Get Free Report) have been given an average recommendation of "Buy" by the eight research firms that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a hold recommendation, six have given a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $154.25.

Several analysts have recently weighed in on EHC shares. Barclays boosted their price objective on shares of Encompass Health from $144.00 to $151.00 and gave the stock an "overweight" rating in a research report on Thursday, October 29th. Raymond James Financial restated a "strong-buy" rating and issued a $155.00 price objective on shares of Encompass Health in a research note on Friday, October 30th. KeyCorp raised their price objective on Encompass Health from $147.00 to $150.00 and gave the stock an "overweight" rating in a report on Friday, October 30th. TD Cowen lifted their target price on Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, October 30th. Finally, Wall Street Zen upgraded Encompass Health from a "hold" rating to a "buy" rating in a research note on Saturday, October 31st.

Encompass Health Trading Up 0.3%

Shares of EHC stock opened at $141.43 on Friday. Encompass Health has a fifty-two week low of $92.77 and a fifty-two week high of $143.36. The company has a 50 day moving average price of $124.34 and a 200 day moving average price of $110.74. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.19 and a current ratio of 1.09. The stock has a market capitalization of $13.95 billion, a P/E ratio of 22.10, a price-to-earnings-growth ratio of 2.46 and a beta of 0.83.

Encompass Health (NYSE:EHC - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) 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 business had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same period last year, the firm earned $1.23 earnings per share. The company's revenue for the quarter was up 8.9% compared to the same quarter last year. Equities research analysts predict that Encompass Health will post 6.26 EPS for the current fiscal year.

Encompass Health Dividend Announcement

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

Insider Buying and Selling at Encompass Health

In other news, EVP John Darby sold 8,906 shares of the company's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.95, for a total value of $1,121,710.70. Following the completion of the sale, the executive vice president directly owned 75,041 shares of the company's stock, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Mark J. Tarr sold 173,148 shares of the stock in a transaction dated 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 owned 267,814 shares of the company's stock, valued at $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. Insiders have sold a total of 186,912 shares of company stock worth $23,434,845 over the last three months. 1.80% of the stock is currently owned by insiders.

Institutional Trading of Encompass Health

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Transamerica Financial Advisors LLC acquired a new position in Encompass Health during the second quarter worth $29,000. Toth Financial Advisory Corp purchased a new stake in shares of Encompass Health in the 3rd quarter valued at $38,000. Persistent Asset Partners Ltd purchased a new stake in shares of Encompass Health in the 2nd quarter valued at $36,000. Keating Financial Advisory Services Inc. acquired a new position in Encompass Health during the 2nd quarter worth about $39,000. Finally, Root Financial Partners LLC purchased a new position in Encompass Health during the 3rd quarter valued at about $52,000. 97.25% of the stock is currently owned by hedge funds and other 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.

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