Encompass Health (NYSE:EHC) Hits New 12-Month High - Still a Buy?

Encompass Health Co. (NYSE:EHC - Get Free Report)'s share price reached a new 52-week high on Friday . The company traded as high as $122.09 and last traded at $121.62, with a volume of 277875 shares traded. The stock had previously closed at $120.01.

Analyst Upgrades and Downgrades

EHC has been the topic of a number of recent analyst reports. Royal Bank of Canada increased their price objective on shares of Encompass Health from $110.00 to $125.00 and gave the stock an "outperform" rating in a research report on Monday, April 28th. Truist Financial restated a "buy" rating and issued a $135.00 target price (up from $116.00) on shares of Encompass Health in a research note on Monday, April 28th. William Blair restated an "outperform" rating on shares of Encompass Health in a research note on Friday, February 7th. Wall Street Zen upgraded shares of Encompass Health from a "buy" rating to a "strong-buy" rating in a research note on Saturday, May 24th. Finally, UBS Group upped their target price on shares of Encompass Health from $117.00 to $130.00 and gave the stock a "buy" rating in a research note on Monday, April 28th. Eight investment analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and an average price target of $122.71.

Encompass Health Trading Up 0.8%

The company's 50-day moving average price is $109.93 and its 200-day moving average price is $102.01. The firm has a market cap of $12.20 billion, a price-to-earnings ratio of 27.13, a price-to-earnings-growth 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 posted its quarterly earnings results on Thursday, April 24th. The company reported $1.37 earnings per share for the quarter, topping analysts' consensus estimates of $1.19 by $0.18. The firm had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.43 billion. Encompass Health had a net margin of 8.48% and a return on equity of 17.56%. Encompass Health's quarterly revenue was up 10.6% on a year-over-year basis. During the same period in the previous year, the business posted $1.12 earnings per share. Equities analysts expect that Encompass Health Co. will post 4.8 EPS for the current fiscal year.

Encompass Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 15th. Shareholders of record on Tuesday, July 1st will be paid 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 dividend payout ratio (DPR) is presently 14.05%.

Insiders Place Their Bets

In other news, CEO Mark J. Tarr sold 118,384 shares of the business's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $121.53, for a total value of $14,387,207.52. Following the sale, the chief executive officer now directly owns 527,070 shares of the company's stock, valued at approximately $64,054,817.10. The trade was a 18.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 completion of the sale, the executive vice president now directly owns 79,710 shares in the company, valued at $9,149,910.90. This trade represents a 11.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 132,663 shares of company stock valued at $16,034,082 over the last ninety days. Company insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Encompass Health

A number of institutional investors and hedge funds have recently made changes to their positions in EHC. T. Rowe Price Investment Management Inc. acquired a new stake in Encompass Health during the 4th quarter worth approximately $152,953,000. Norges Bank acquired a new stake in Encompass Health during the 4th quarter worth approximately $100,637,000. Raymond James Financial Inc. acquired a new stake in Encompass Health during the 4th quarter worth approximately $77,944,000. Jennison Associates LLC acquired a new stake in Encompass Health during the 4th quarter worth approximately $52,094,000. Finally, Nuveen LLC acquired a new stake in Encompass Health during the 1st quarter worth approximately $50,665,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

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.