Encompass Health (NYSE:EHC) Updates FY 2025 Earnings Guidance

Key Points

• Encompass Health has updated its FY 2025 earnings guidance, projecting an EPS of 5.120-5.340 and revenue between $5.9 billion-$6.0 billion, surpassing the consensus estimates.
• The company recently declared a quarterly dividend increase to $0.19 per share, up from $0.17, with a dividend yield of 0.7% and a payout ratio of 15.70%.
• Analysts are optimistic about the stock, with a consensus rating of "Buy" and a target price average of $131.50, indicating strong investor confidence moving forward.

Encompass Health (NYSE:EHC - Get Free Report) issued an update on its FY 2025 earnings guidance on Monday morning. The company provided EPS guidance of 5.120-5.340 for the period, compared to the consensus EPS estimate of 5.007. The company issued revenue guidance of $5.9 billion-$6.0 billion, compared to the consensus revenue estimate of $5.9 billion.

Encompass Health Stock Up 0.9%

Shares of Encompass Health stock traded up $0.93 during trading on Monday, hitting $109.46. The company's stock had a trading volume of 1,772,385 shares, compared to its average volume of 815,345. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.06. The company has a fifty day simple moving average of $116.88 and a two-hundred day simple moving average of $108.16. The company has a market capitalization of $11.03 billion, a PE ratio of 22.62, a P/E/G ratio of 2.20 and a beta of 0.86. Encompass Health has a 52 week low of $82.74 and a 52 week high of $123.13.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings data on Monday, August 4th. The company reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.20. Encompass Health had a net margin of 8.97% and a return on equity of 17.63%. Equities research analysts predict that Encompass Health will post 4.8 earnings per share for the current year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st will be paid a $0.19 dividend. This is a positive change from Encompass Health's previous quarterly dividend of $0.17. The ex-dividend date is Wednesday, October 1st. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. Encompass Health's dividend payout ratio (DPR) is currently 15.70%.

Analysts Set New Price Targets

EHC has been the topic of several recent analyst reports. Truist Financial reissued a "buy" rating and set a $135.00 target price (up previously from $116.00) on shares of Encompass Health in a research note on Monday, April 28th. 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. 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 cut shares of Encompass Health from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. Finally, Barclays increased their price objective on shares of Encompass Health from $118.00 to $129.00 and gave the company an "overweight" rating in a report on Friday, April 25th. Seven equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Encompass Health has a consensus rating of "Buy" and a consensus target price of $131.50.

Insider Transactions at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 118,384 shares of the firm's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $121.53, for a total transaction of $14,387,207.52. Following the completion of the transaction, the chief executive officer owned 527,070 shares of the company's stock, 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 filing with the SEC, which is accessible through this link. Also, insider Elissa Joy Charbonneau sold 4,279 shares of Encompass Health stock in a transaction on Tuesday, May 6th. The shares were sold at an average price of $116.61, for a total value of $498,974.19. Following the completion of the sale, the insider directly owned 11,958 shares of the company's stock, valued at approximately $1,394,422.38. This represents a 26.35% decrease in their position. The disclosure for this sale can be found here. Company insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Encompass Health

A number of large investors have recently modified their holdings of the stock. Caxton Associates LLP bought a new stake in shares of Encompass Health in the 1st quarter worth approximately $259,000. Royal Bank of Canada increased its position in shares of Encompass Health by 21.5% during the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company's stock valued at $8,960,000 after purchasing an additional 15,677 shares during the period. Finally, Millennium Management LLC increased its position in shares of Encompass Health by 38.4% during the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company's stock valued at $9,338,000 after purchasing an additional 25,574 shares during the period. Institutional investors and hedge funds 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.

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