UBS Group Increases Encompass Health (NYSE:EHC) Price Target to $140.00

Key Points

• UBS Group has raised Encompass Health's target price to $140.00, indicating a potential upside of 21.25% from its current price, while maintaining a "buy" rating.
• Other firms have also increased their target prices for Encompass Health, with consensus estimates reaching around $133.17 and a general sentiment rating of "buy" from several analysts.
• Encompass Health reported a 12.0% increase in year-over-year revenue, with earnings per share of $1.40 for the last quarter, surpassing expectations.

Encompass Health (NYSE:EHC - Get Free Report) had its price objective raised by equities research analysts at UBS Group from $130.00 to $140.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the stock. UBS Group's target price would suggest a potential upside of 19.26% from the company's previous close.

EHC has been the subject of a number of other research reports. Wall Street Zen lowered Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. KeyCorp increased their price objective on shares of Encompass Health from $122.00 to $135.00 and gave the company an "overweight" rating in a report on Tuesday, May 27th. Truist Financial reissued a "buy" rating and issued a $135.00 target price (up previously from $116.00) on shares of Encompass Health in a report on Monday, April 28th. Royal Bank Of Canada raised their target price on shares of Encompass Health from $110.00 to $125.00 and gave the company an "outperform" rating in a research note on Monday, April 28th. Finally, Stephens raised shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price objective for the company in a report on Thursday, June 5th. Seven research analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Buy" and an average target price of $133.17.

Encompass Health Stock Performance

Encompass Health stock traded up $0.88 during trading on Wednesday, reaching $117.39. The company had a trading volume of 98,473 shares, compared to its average volume of 823,060. The firm has a market capitalization of $11.83 billion, a price-to-earnings ratio of 22.93, a price-to-earnings-growth ratio of 2.19 and a beta of 0.86. 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 firm's 50-day simple moving average is $116.43 and its 200 day simple moving average is $108.51. Encompass Health has a 52 week low of $85.55 and a 52 week high of $123.13.

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

Insider Activity

In related news, CEO Mark J. Tarr sold 118,384 shares of Encompass Health stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 527,070 shares in the company, valued at approximately $64,054,817.10. This trade represents a 18.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Encompass Health

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Pinnacle Wealth Planning Services Inc. increased its position in Encompass Health by 4.0% during the first quarter. Pinnacle Wealth Planning Services Inc. now owns 2,597 shares of the company's stock valued at $263,000 after acquiring an additional 99 shares during the last quarter. Securian Asset Management Inc. boosted its stake in shares of Encompass Health by 1.3% during the 2nd quarter. Securian Asset Management Inc. now owns 7,716 shares of the company's stock worth $946,000 after purchasing an additional 100 shares during the period. State of Michigan Retirement System grew its holdings in Encompass Health by 0.4% during the 2nd quarter. State of Michigan Retirement System now owns 24,245 shares of the company's stock valued at $2,973,000 after purchasing an additional 100 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in Encompass Health by 19.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 720 shares of the company's stock worth $73,000 after purchasing an additional 115 shares during the period. Finally, UMB Bank n.a. lifted its stake in Encompass Health by 10.9% in the second quarter. UMB Bank n.a. now owns 1,187 shares of the company's stock worth $146,000 after purchasing an additional 117 shares during the last quarter. Hedge funds and other institutional investors own 97.25% of the company's stock.

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.