Encompass Health (NYSE:EHC) Sets New 52-Week High - Should You Buy?

Encompass Health Co. (NYSE:EHC - Get Free Report) shares reached a new 52-week high during trading on Thursday . The company traded as high as $123.13 and last traded at $121.26, with a volume of 573478 shares traded. The stock had previously closed at $121.51.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on EHC shares. Truist Financial reaffirmed a "buy" rating and set a $135.00 target price (up previously from $116.00) on shares of Encompass Health in a research note on Monday, April 28th. William Blair restated an "outperform" rating on shares of Encompass Health in a research report on Friday, February 7th. KeyCorp lifted their price objective on shares of Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Stephens reissued an "overweight" rating and set a $135.00 target price on shares of Encompass Health in a research note on Thursday. Finally, Barclays lifted their price target on shares of Encompass Health from $118.00 to $129.00 and gave the stock an "overweight" rating in a research report on Friday, April 25th. Eight analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $127.00.

Encompass Health Stock Performance

The firm's 50-day moving average price is $111.55 and its two-hundred day moving average price is $102.58. The company has a quick ratio of 1.04, a current ratio of 1.05 and a debt-to-equity ratio of 0.84. The firm has a market capitalization of $12.25 billion, a PE ratio of 27.26, a P/E/G ratio of 2.31 and a beta of 0.89.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results on Thursday, April 24th. The company reported $1.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.19 by $0.18. Encompass Health had a return on equity of 17.56% and a net margin of 8.48%. The company had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the prior year, the company earned $1.12 earnings per share. The company's revenue for the quarter was up 10.6% on a year-over-year basis. As a group, research analysts predict that Encompass Health Co. will post 4.8 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 0.56%. The ex-dividend date of this dividend is Tuesday, July 1st. Encompass Health's dividend payout ratio is currently 14.05%.

Insider Activity at Encompass Health

In other news, CEO Mark J. Tarr sold 118,384 shares of the business's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $121.53, for a total transaction of $14,387,207.52. Following the transaction, the chief executive officer now directly owns 527,070 shares in the company, valued at $64,054,817.10. The trade was a 18.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Elissa Joy Charbonneau sold 4,279 shares of the stock in a transaction on Tuesday, May 6th. The stock was sold at an average price of $116.61, for a total value of $498,974.19. Following the sale, the insider now owns 11,958 shares of the company's stock, valued at approximately $1,394,422.38. This represents a 26.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 132,663 shares of company stock valued at $16,034,082. Corporate insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Encompass Health

Institutional investors have recently made changes to their positions in the company. WPG Advisers LLC bought a new position in Encompass Health during the first quarter valued at approximately $27,000. Colonial Trust Co SC acquired a new position in shares of Encompass Health during the 4th quarter worth $29,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of Encompass Health by 749.0% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 416 shares of the company's stock valued at $42,000 after purchasing an additional 367 shares in the last quarter. Transce3nd LLC acquired a new stake in shares of Encompass Health in the 4th quarter valued at $40,000. Finally, CBIZ Investment Advisory Services LLC boosted its holdings in Encompass Health by 38.7% in the fourth quarter. CBIZ Investment Advisory Services LLC now owns 455 shares of the company's stock worth $42,000 after purchasing an additional 127 shares in the last quarter. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Encompass Health Company Profile

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.