Encompass Health (NYSE:EHC) Reaches New 1-Year High - Here's What Happened

Key Points

• Encompass Health's stock reached a new 52-week high of $127.78 during trading, closing at $127.53 with a trading volume of 31,189 shares.
• Several analysts have raised their price targets for Encompass Health, with a consensus average price target of $138.43 and the majority rating the stock as a "Buy" or "Strong Buy."
• The company reported strong earnings with a quarterly EPS of $1.40, exceeding expectations, and recently increased its dividend to $0.19 per share.

Encompass Health Corporation (NYSE:EHC - Get Free Report) shares hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $127.78 and last traded at $127.53, with a volume of 31189 shares. The stock had previously closed at $126.04.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on EHC. Truist Financial upped their price objective on Encompass Health from $135.00 to $140.00 and gave the stock a "buy" rating in a report on Thursday, August 14th. UBS Group lifted their target price on shares of Encompass Health from $130.00 to $140.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Stephens upgraded Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 price target for the company in a report on Thursday, June 5th. KeyCorp raised their price objective on Encompass Health from $135.00 to $140.00 and gave the company an "overweight" rating in a research report on Tuesday, September 16th. Finally, Wall Street Zen downgraded Encompass Health from a "strong-buy" rating to a "buy" rating in a research report on Friday, June 6th. One analyst has rated the stock with a Strong Buy rating and seven have issued a Buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $138.43.

Encompass Health Stock Up 0.6%

The firm has a market cap of $12.77 billion, a price-to-earnings ratio of 24.81, a price-to-earnings-growth ratio of 2.17 and a beta of 0.92. The stock has a 50-day moving average of $118.25 and a 200-day moving average of $113.99. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC - Get Free Report) last posted its earnings results 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 net margin of 9.22% and a return on equity of 17.83%. The firm had revenue of $1.46 billion during the quarter, compared to analysts' expectations of $1.43 billion. During the same quarter in the prior year, the firm earned $1.11 EPS. Encompass Health's quarterly revenue was up 12.0% on a year-over-year basis. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. As a group, sell-side analysts forecast that Encompass Health Corporation will post 4.8 EPS 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. Stockholders of record on Wednesday, October 1st will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 0.6%. This is a positive change from Encompass Health's previous quarterly dividend of $0.17. The ex-dividend date is Wednesday, October 1st. Encompass Health's payout ratio is currently 13.31%.

Insiders Place Their Bets

In related news, EVP Patrick William Tuer sold 1,020 shares of the 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 sale, the executive vice president directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Deutsche Bank AG grew its stake in Encompass Health by 9.9% during the 4th quarter. Deutsche Bank AG now owns 9,814 shares of the company's stock valued at $906,000 after acquiring an additional 883 shares in the last quarter. ProShare Advisors LLC lifted its position in shares of Encompass Health by 7.5% in the fourth quarter. ProShare Advisors LLC now owns 4,713 shares of the company's stock worth $435,000 after purchasing an additional 327 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Encompass Health by 18.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 367,598 shares of the company's stock worth $33,948,000 after purchasing an additional 57,130 shares during the period. ABLE Financial Group LLC grew its position in Encompass Health by 20.1% during the fourth quarter. ABLE Financial Group LLC now owns 12,528 shares of the company's stock valued at $1,157,000 after purchasing an additional 2,100 shares in the last quarter. Finally, Centaurus Financial Inc. increased its stake in Encompass Health by 43.5% in the 4th quarter. Centaurus Financial Inc. now owns 1,600 shares of the company's stock valued at $148,000 after buying an additional 485 shares during the period. 97.25% of the stock is owned by hedge funds and other institutional investors.

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.

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