Encompass Health (NYSE:EHC) Releases Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Key Points

• Encompass Health reported quarterly EPS of $1.52, beating analysts’ consensus estimate of $1.36 by $0.16. The company posted a 10.01% net margin and 18.08% return on equity.
• The company declared a quarterly dividend of $0.21 per share, equivalent to $0.84 annually and a 0.7% yield. Shares traded near $122, with a market capitalization of approximately $12.04 billion.
• Analysts maintain a consensus “Buy” rating with an average price target of $148.50, although insiders sold roughly $23.4 million of stock over the past three months.

Encompass Health (NYSE:EHC - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $1.52 EPS for the quarter, topping the consensus estimate of $1.36 by $0.16, Zacks reports. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%.

Encompass Health Price Performance

NYSE:EHC traded up $0.54 during mid-day trading on Wednesday, reaching $122.07. 1,006,554 shares of the stock were exchanged, compared to its average volume of 1,042,763. The business has a fifty day moving average price of $122.39 and a 200 day moving average price of $109.58. The firm has a market capitalization of $12.04 billion, a PE ratio of 19.88, a PEG ratio of 2.51 and a beta of 0.74. Encompass Health has a 1-year low of $92.77 and a 1-year high of $129.96. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76.

Encompass Health Announces Dividend

The company also recently announced 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 of this dividend is Monday, January 4th. This represents a $0.84 annualized dividend and a yield of 0.7%. Encompass Health's dividend payout ratio (DPR) is currently 13.68%.

Analysts Set New Price Targets

EHC has been the subject of several recent analyst reports. Wall Street Zen cut shares of Encompass Health from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. Weiss Ratings raised Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Truist Financial boosted their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Barclays increased their price objective on Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Finally, TD Cowen raised their target price on Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, Encompass Health currently has a consensus rating of "Buy" and an average target price of $148.50.

Insider Transactions at Encompass Health

In related news, CEO Mark J. Tarr sold 173,148 shares of the business's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the sale, the chief executive officer directly owned 267,814 shares in the company, valued at $33,602,622.58. The trade was a 39.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John Darby sold 4,858 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $121.09, for a total transaction of $588,255.22. Following the sale, the executive vice president directly owned 75,041 shares of the company's stock, valued at approximately $9,086,714.69. This represents a 6.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 186,912 shares of company stock valued at $23,434,845 over the last three months. 1.80% of the stock is owned by corporate insiders.

Encompass Health Company Profile

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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