Encompass Health Corporation (NYSE:EHC) Short Interest Update

Key Points

• Encompass Health Corporation experienced a 25.2% increase in short interest in August, bringing the total to 1,290,000 shares short sold with a days-to-cover ratio of 1.5 days.
• Insider trading shows EVP Patrick William Tuer sold 1,020 shares for approximately $126,061, marking a 5.13% decrease in his ownership of the stock.
• The company increased its quarterly dividend to $0.19, with a yield of 0.6%, reflecting positive performance and shareholder returns.

Encompass Health Corporation (NYSE:EHC - Get Free Report) saw a significant increase in short interest in the month of August. As of August 31st, there was short interest totaling 1,290,000 shares, an increase of 25.2% from the August 15th total of 1,030,000 shares. Currently, 1.3% of the shares of the stock are short sold. Based on an average trading volume of 853,800 shares, the days-to-cover ratio is presently 1.5 days. Based on an average trading volume of 853,800 shares, the days-to-cover ratio is presently 1.5 days. Currently, 1.3% of the shares of the stock are short sold.

Insider Buying and Selling

In other news, EVP Patrick William Tuer sold 1,020 shares of the firm's stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $123.59, for a total transaction of $126,061.80. Following the completion of the transaction, the executive vice president directly owned 18,846 shares of the company's stock, valued at $2,329,177.14. This trade represents a 5.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 2.00% of the company's stock.

Institutional Trading of Encompass Health

A number of hedge funds have recently bought and sold shares of the business. Invesco Ltd. increased its holdings in shares of Encompass Health by 5.1% in the 1st quarter. Invesco Ltd. now owns 5,818,783 shares of the company's stock worth $589,326,000 after buying an additional 282,532 shares during the last quarter. T. Rowe Price Investment Management Inc. increased its stake in shares of Encompass Health by 25.6% during the first quarter. T. Rowe Price Investment Management Inc. now owns 2,080,918 shares of the company's stock valued at $210,756,000 after purchasing an additional 424,691 shares in the last quarter. Alliancebernstein L.P. increased its holdings in shares of Encompass Health by 6.8% during the second quarter. Alliancebernstein L.P. now owns 2,039,314 shares of the company's stock valued at $250,081,000 after acquiring an additional 129,276 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Encompass Health by 5.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,871,581 shares of the company's stock worth $189,549,000 after purchasing an additional 93,992 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its position in Encompass Health by 13.1% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 1,822,376 shares of the company's stock valued at $184,571,000 after purchasing an additional 211,707 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Price Performance

EHC traded down $1.39 during trading on Friday, hitting $123.94. 1,428,682 shares of the stock traded hands, compared to its average volume of 602,788. Encompass Health has a twelve month low of $87.85 and a twelve month high of $127.15. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.06 and a quick ratio of 1.06. The company has a market cap of $12.48 billion, a price-to-earnings ratio of 24.25, a PEG ratio of 2.17 and a beta of 0.92. The business has a 50 day moving average price of $118.12 and a 200 day moving average price of $113.71.

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

Encompass Health Increases Dividend

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

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. UBS Group increased their price target on shares of Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Truist Financial upped their price objective on shares of Encompass Health from $135.00 to $140.00 and gave the company a "buy" rating in a research report on Thursday, August 14th. Bank of America increased their price objective on shares of Encompass Health from $145.00 to $160.00 and gave the company a "buy" rating in a research note on Wednesday, September 10th. Wall Street Zen downgraded shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. Finally, KeyCorp increased their target price on shares of Encompass Health from $135.00 to $140.00 and gave the stock an "overweight" rating in a research report on Tuesday, September 16th. One research analyst has rated the stock with a Strong Buy rating and seven have issued a Buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average price target of $138.43.

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.