Encompass Health Corporation (NYSE:EHC) Given Consensus Rating of "Buy" by Brokerages

Key Points

• Encompass Health Corporation has received a consensus rating of "Buy" from seven brokerages, with an average 1-year target price of $134.00.
• The company recently announced an increase in its quarterly dividend from $0.17 to $0.19, resulting in an annualized dividend yield of 0.6%.
• Encompass Health reported earnings of $1.40 per share for the last quarter, exceeding consensus estimates by $0.20, with a revenue increase of 12.0% year-over-year.

Shares of Encompass Health Corporation (NYSE:EHC - Get Free Report) have received an average recommendation of "Buy" from the seven brokerages that are covering the stock, Marketbeat Ratings reports. Six analysts have rated the stock with a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $134.00.

Several research firms have issued reports on EHC. KeyCorp boosted their price objective on Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a report on Tuesday, May 27th. Truist Financial upped their target price on Encompass Health from $135.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 14th. Stephens upgraded Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price on the stock in a report on Thursday, June 5th. UBS Group upped their target price on Encompass Health from $130.00 to $140.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Finally, Wall Street Zen downgraded Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th.

Encompass Health Price Performance

NYSE EHC opened at $125.59 on Friday. The stock's 50-day moving average price is $116.93 and its two-hundred day moving average price is $111.93. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.76. The company has a market cap of $12.65 billion, a PE ratio of 24.58, a PEG ratio of 2.20 and a beta of 0.92. Encompass Health has a 1 year low of $87.85 and a 1 year high of $125.86.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings data on Monday, August 4th. The company reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.20. The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. Encompass Health had a return on equity of 17.83% and a net margin of 9.22%.The business's revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.11 EPS. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. On average, analysts predict that Encompass Health will post 4.8 EPS for the current year.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st will be issued a $0.19 dividend. The ex-dividend date is Wednesday, October 1st. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.6%. This is a positive change from Encompass Health's previous quarterly dividend of $0.17. Encompass Health's dividend payout ratio is currently 13.31%.

Insider Buying and Selling at Encompass Health

In other news, EVP Patrick William Tuer sold 1,020 shares of the company's stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $123.59, for a total value of $126,061.80. Following the transaction, the executive vice president owned 18,846 shares in the company, valued at $2,329,177.14. This represents a 5.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Encompass Health

A number of large investors have recently made changes to their positions in the business. WPG Advisers LLC bought a new stake in shares of Encompass Health in the 1st quarter valued at approximately $27,000. Colonial Trust Co SC bought a new stake in shares of Encompass Health in the 4th quarter valued at approximately $29,000. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of Encompass Health by 749.0% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 416 shares of the company's stock valued at $42,000 after buying an additional 367 shares in the last quarter. Newbridge Financial Services Group Inc. grew its stake in shares of Encompass Health by 112.5% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 425 shares of the company's stock valued at $52,000 after buying an additional 225 shares in the last quarter. Finally, Employees Retirement System of Texas bought a new stake in shares of Encompass Health in the 2nd quarter valued at approximately $57,000. Institutional investors and hedge funds own 97.25% of the company's stock.

About Encompass Health

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.

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