Encompass Health (NYSE:EHC) Sets New 12-Month High Following Analyst Upgrade

Key Points

• Encompass Health's stock hit a new 52-week high at $126.70 after Bank of America upgraded its price target from $145 to $160, maintaining a buy rating.
• The company recently announced a dividend increase, raising it from $0.17 to $0.19 per share, which will be paid on October 15th, resulting in an annualized yield of 0.6%.
• Several analysts have provided positive ratings and price targets for Encompass Health, with an average target price of $137.71 and multiple upgrades from firms like Stephens and UBS Group.

Encompass Health Corporation (NYSE:EHC - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Thursday after Bank of America raised their price target on the stock from $145.00 to $160.00. Bank of America currently has a buy rating on the stock. Encompass Health traded as high as $126.65 and last traded at $126.70, with a volume of 256496 shares traded. The stock had previously closed at $124.60.

Several other research firms have also recently weighed in on EHC. Stephens raised shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price for the company in a research note on Thursday, June 5th. Wall Street Zen downgraded Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. UBS Group upped their price objective on Encompass Health from $130.00 to $140.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. KeyCorp boosted their target price on shares of Encompass Health from $122.00 to $135.00 and gave the stock an "overweight" rating in a report on Tuesday, May 27th. Finally, Truist Financial increased their price target on shares of Encompass Health from $135.00 to $140.00 and gave the company a "buy" rating in a report on Thursday, August 14th. One analyst has rated the stock with a Strong Buy rating and seven have assigned a Buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and an average target price of $137.71.

Insider Buying and Selling at Encompass Health

In other news, EVP Patrick William Tuer sold 1,020 shares of the firm's stock in a transaction dated Wednesday, August 27th. The shares were sold at an average price of $123.59, for a total value of $126,061.80. Following the completion of the sale, the executive vice president owned 18,846 shares in the company, valued at approximately $2,329,177.14. This trade represents a 5.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 2.00% of the company's stock.

Institutional Trading of Encompass Health

Several institutional investors have recently added to or reduced their stakes in the company. OneDigital Investment Advisors LLC bought a new position in shares of Encompass Health during the first quarter valued at approximately $263,000. GAMMA Investing LLC grew its position in Encompass Health by 21.5% in the 1st quarter. GAMMA Investing LLC now owns 2,366 shares of the company's stock valued at $240,000 after acquiring an additional 419 shares during the last quarter. Sequoia Financial Advisors LLC increased its stake in Encompass Health by 6.7% in the first quarter. Sequoia Financial Advisors LLC now owns 2,727 shares of the company's stock worth $276,000 after purchasing an additional 172 shares during the period. Cambridge Investment Research Advisors Inc. lifted its position in shares of Encompass Health by 30.1% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 9,597 shares of the company's stock worth $972,000 after purchasing an additional 2,218 shares during the last quarter. Finally, Fifth Third Bancorp boosted its stake in shares of Encompass Health by 88.7% during the first quarter. Fifth Third Bancorp now owns 4,290 shares of the company's stock valued at $434,000 after purchasing an additional 2,017 shares during the period. Institutional investors own 97.25% of the company's stock.

Encompass Health Trading Up 1.8%

The stock has a market capitalization of $12.77 billion, a P/E ratio of 24.79, a PEG ratio of 2.19 and a beta of 0.92. The stock's fifty day moving average price is $117.21 and its 200 day moving average price is $112.39. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.06 and a quick ratio of 1.06.

Encompass Health (NYSE:EHC - Get Free Report) last issued its earnings results on Monday, August 4th. The company reported $1.40 EPS for the quarter, topping analysts' consensus estimates of $1.20 by $0.20. 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 9.22% and a return on equity of 17.83%. The company's revenue for the quarter was up 12.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.11 EPS. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. Research analysts forecast that Encompass Health Corporation will post 4.8 earnings per share for the current year.

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders 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 of this dividend is Wednesday, October 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.6%. Encompass Health's dividend payout ratio is presently 13.31%.

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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