Encompass Health (NYSE:EHC) Reaches New 12-Month High - Should You Buy?

Encompass Health Co. (NYSE:EHC - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $121.44 and last traded at $121.15, with a volume of 543136 shares. The stock had previously closed at $120.87.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on EHC shares. UBS Group increased their target price on shares of Encompass Health from $117.00 to $130.00 and gave the company a "buy" rating in a research report on Monday, April 28th. Royal Bank of Canada raised their price objective on shares of Encompass Health from $110.00 to $125.00 and gave the company an "outperform" rating in a research report on Monday, April 28th. StockNews.com upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a research report on Sunday, May 11th. KeyCorp raised their price objective on shares of Encompass Health from $120.00 to $122.00 and gave the company an "overweight" rating in a research report on Friday, April 25th. Finally, William Blair restated an "outperform" rating on shares of Encompass Health in a research report on Friday, February 7th. Nine research analysts have rated the stock with a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus target price of $120.86.

Encompass Health Stock Performance

The firm's 50-day moving average price is $105.97 and its two-hundred day moving average price is $100.90. The firm has a market capitalization of $12.21 billion, a PE ratio of 27.16, a P/E/G ratio of 2.31 and a beta of 0.91. The company has a quick ratio of 1.04, a current ratio of 1.05 and a debt-to-equity ratio of 0.84.

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

Encompass Health Announces Dividend

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

Insider Activity at Encompass Health

In related news, EVP John Patrick Darby sold 10,000 shares of the business's stock in a transaction that occurred on Tuesday, April 29th. The shares were sold at an average price of $114.79, for a total transaction of $1,147,900.00. Following the transaction, the executive vice president now directly owns 79,710 shares of the company's stock, valued at approximately $9,149,910.90. The trade was a 11.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Elissa Joy Charbonneau sold 4,279 shares of the business's stock in a transaction that occurred on Tuesday, May 6th. The shares were sold at an average price of $116.61, for a total transaction of $498,974.19. Following the transaction, the insider now directly owns 11,958 shares in the company, valued at $1,394,422.38. The trade was a 26.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.00% of the stock is currently owned by insiders.

Institutional Trading of Encompass Health

A number of institutional investors have recently added to or reduced their stakes in EHC. T. Rowe Price Investment Management Inc. acquired a new stake in Encompass Health in the fourth quarter valued at approximately $152,953,000. Norges Bank acquired a new stake in Encompass Health in the fourth quarter valued at approximately $100,637,000. Raymond James Financial Inc. acquired a new stake in shares of Encompass Health in the fourth quarter worth $77,944,000. Jennison Associates LLC acquired a new stake in shares of Encompass Health in the fourth quarter worth $52,094,000. Finally, Nuveen LLC acquired a new stake in shares of Encompass Health in the first quarter worth $50,665,000. 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.

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