Encompass Health (NYSE:EHC) Posts Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Key Points

• Encompass Health reported quarterly earnings of $1.40 per share, surpassing the analysts' estimate of $1.20 by $0.20 and updated its full-year 2025 guidance to 5.120-5.340 EPS.
• The company declared a quarterly dividend of $0.19 per share, an increase from the previous $0.17, with an annualized yield of 0.7%.
• Several analysts have revised their price targets for Encompass Health, with Barclays raising its target from $118.00 to $129.00 and Truist Financial increasing its target to $135.00, maintaining a "buy" rating.

Encompass Health (NYSE:EHC - Get Free Report) posted its quarterly earnings data on Monday. The company reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.20, Zacks reports. Encompass Health had a return on equity of 17.63% and a net margin of 8.97%. Encompass Health updated its FY 2025 guidance to 5.120-5.340 EPS.

Encompass Health Price Performance

NYSE EHC traded up $0.93 during trading hours on Monday, reaching $109.46. 1,772,385 shares of the company's stock were exchanged, compared to its average volume of 815,345. The stock has a market cap of $11.03 billion, a PE ratio of 22.62, a price-to-earnings-growth ratio of 2.20 and a beta of 0.86. Encompass Health has a one year low of $82.74 and a one year high of $123.13. The firm has a fifty day moving average of $116.88 and a 200-day moving average of $108.16. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.81.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Wednesday, October 1st will be given a dividend of $0.19 per share. This is a boost from Encompass Health's previous quarterly dividend of $0.17. The ex-dividend date is Wednesday, October 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.7%. Encompass Health's dividend payout ratio is currently 15.70%.

Analysts Set New Price Targets

Several equities analysts have commented on EHC shares. Wall Street Zen cut Encompass Health from a "strong-buy" rating to a "buy" rating in a report on Friday, June 6th. Barclays upped their price target on Encompass Health from $118.00 to $129.00 and gave the company an "overweight" rating in a report on Friday, April 25th. Truist Financial reaffirmed a "buy" rating and issued a $135.00 price target (up previously from $116.00) on shares of Encompass Health in a report on Monday, April 28th. Royal Bank Of Canada upped their price objective on Encompass Health from $110.00 to $125.00 and gave the company an "outperform" rating in a research note on Monday, April 28th. Finally, KeyCorp upped their price objective on Encompass Health from $122.00 to $135.00 and gave the company an "overweight" rating in a research note on Tuesday, May 27th. Seven equities research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Buy" and an average price target of $131.50.

Insider Buying and Selling

In other Encompass Health news, insider Elissa Joy Charbonneau sold 4,279 shares of the company's stock in a transaction on Tuesday, May 6th. The stock was sold at an average price of $116.61, for a total transaction of $498,974.19. Following the transaction, the insider owned 11,958 shares of the company's stock, valued at approximately $1,394,422.38. This represents a 26.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Mark J. Tarr sold 118,384 shares of the company's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $121.53, for a total value of $14,387,207.52. Following the transaction, the chief executive officer directly owned 527,070 shares in the company, valued at approximately $64,054,817.10. This represents a 18.34% decrease in their position. The disclosure for this sale can be found here. 2.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Millennium Management LLC raised its stake in Encompass Health by 38.4% during the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company's stock worth $9,338,000 after buying an additional 25,574 shares during the period. Royal Bank of Canada raised its stake in Encompass Health by 21.5% during the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company's stock worth $8,960,000 after buying an additional 15,677 shares during the period. Finally, Caxton Associates LLP acquired a new stake in Encompass Health during the 1st quarter worth $259,000. 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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