Encompass Health Corporation (NYSE:EHC) Receives Average Recommendation of "Buy" from Brokerages

Key Points

• Encompass Health Corporation has received an average recommendation of "Buy" from eight brokerages, with a consensus 1-year price target of $138.43.
• The company recently increased its quarterly dividend to $0.19 per share, representing a 0.6% yield, up from the previous $0.17.
• Encompass Health reported a 12% year-over-year revenue increase for the latest quarter, achieving an EPS of $1.40, exceeding analyst expectations.

Shares of Encompass Health Corporation (NYSE:EHC - Get Free Report) have been assigned a consensus recommendation of "Buy" from the eight brokerages that are covering the company, Marketbeat Ratings reports. Seven investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $138.4286.

A number of research analysts have recently commented on the company. Wall Street Zen cut Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. Stephens raised Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price objective on the stock in a research note on Thursday, June 5th. KeyCorp increased their price objective on Encompass Health from $135.00 to $140.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 16th. Bank of America increased their price objective on Encompass Health from $145.00 to $160.00 and gave the stock a "buy" rating in a research note on Wednesday, September 10th. Finally, Truist Financial increased their price objective on Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th.

Insider Transactions at Encompass Health

In related news, EVP Patrick William Tuer sold 1,020 shares of the stock in a transaction that occurred on 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 of the company's stock, valued at $2,329,177.14. This represents a 5.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 2.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in EHC. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Encompass Health by 46.0% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 19,204 shares of the company's stock valued at $1,774,000 after acquiring an additional 6,053 shares during the period. GAMMA Investing LLC increased its holdings in shares of Encompass Health by 12,207.6% in the 1st quarter. GAMMA Investing LLC now owns 239,628 shares of the company's stock valued at $24,270,000 after acquiring an additional 237,681 shares during the period. Parallel Advisors LLC increased its holdings in shares of Encompass Health by 25.0% in the 1st quarter. Parallel Advisors LLC now owns 2,319 shares of the company's stock valued at $235,000 after acquiring an additional 464 shares during the period. NBC Securities Inc. increased its holdings in shares of Encompass Health by 140,033.3% in the 1st quarter. NBC Securities Inc. now owns 4,204 shares of the company's stock valued at $425,000 after acquiring an additional 4,201 shares during the period. Finally, Merit Financial Group LLC increased its holdings in shares of Encompass Health by 4.1% in the 1st quarter. Merit Financial Group LLC now owns 4,220 shares of the company's stock valued at $427,000 after acquiring an additional 166 shares during the period. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Trading Down 1.9%

EHC opened at $124.59 on Thursday. The stock has a market cap of $12.55 billion, a price-to-earnings ratio of 24.38, a P/E/G ratio of 2.22 and a beta of 0.93. The stock's 50 day moving average price is $120.61 and its 200-day moving average price is $115.19. Encompass Health has a one year low of $87.85 and a one year high of $127.86. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.06 and a current ratio of 1.06.

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

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.6%. This is an increase from Encompass Health's previous quarterly dividend of $0.17. The ex-dividend date of this dividend is Wednesday, October 1st. Encompass Health's payout ratio is currently 13.31%.

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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