Encompass Health (NYSE:EHC) Hits New 52-Week High - Still a Buy?

Key Points

• Encompass Health hit a 52-week high, trading as high as $139.27 after closing the prior session at $134.79.
• Analysts maintain a consensus Buy rating, with an average price target of $154.25; recent targets range up to $156.
• Quarterly results beat expectations: EPS was $1.52 versus a $1.36 estimate, while revenue rose 8.9% year over year to $1.61 billion.

Encompass Health Corporation (NYSE:EHC - Get Free Report) reached a new 52-week high during trading on Wednesday. The company traded as high as $139.27 and last traded at $139.51, with a volume of 169,810 shares. The stock had previously closed at $134.79.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Raymond James Financial reaffirmed a "strong-buy" rating and set a $155.00 price objective on shares of Encompass Health in a report on Friday. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday. Weiss Ratings upgraded shares of Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. TD Cowen raised their target price on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research note on Friday, October 30th. Finally, Truist Financial reiterated a "buy" rating and issued a $156.00 price target (up from $150.00) on shares of Encompass Health in a report on Friday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of $154.25.

Encompass Health Price Performance

The firm's 50-day moving average price is $123.51 and its 200-day moving average price is $110.34. The company has a current ratio of 1.09, a quick ratio of 1.19 and a debt-to-equity ratio of 0.73. The stock has a market capitalization of $13.87 billion, a PE ratio of 21.97, a PEG ratio of 2.38 and a beta of 0.83.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The company reported $1.52 EPS for the quarter, topping the consensus estimate of $1.36 by $0.16. Encompass Health had a return on equity of 18.35% and a net margin of 10.17%. The company had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same quarter last year, the business posted $1.23 earnings per share. The firm's revenue was up 8.9% on a year-over-year basis. On average, equities analysts forecast that Encompass Health Corporation will post 6.29 EPS for the current fiscal year.

Encompass Health Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Monday, January 4th will be given a dividend of $0.21 per share. The ex-dividend date of this dividend is Monday, January 4th. This represents a $0.84 annualized dividend and a dividend yield of 0.6%. Encompass Health's payout ratio is currently 13.12%.

Insider Buying and Selling at Encompass Health

In related news, EVP John Darby sold 4,858 shares of the firm's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $121.09, for a total value of $588,255.22. Following the completion of the sale, the executive vice president directly owned 75,041 shares in the company, valued at $9,086,714.69. This trade represents a 6.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Mark Tarr sold 173,148 shares of Encompass Health stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the transaction, the chief executive officer directly owned 267,814 shares of the company's stock, valued at $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 186,912 shares of company stock worth $23,434,845 in the last 90 days. 1.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Encompass Health

Several hedge funds have recently added to or reduced their stakes in the company. Kestra Investment Management LLC grew its stake in Encompass Health by 14.3% in the third quarter. Kestra Investment Management LLC now owns 6,517 shares of the company's stock worth $792,000 after purchasing an additional 815 shares in the last quarter. Leuthold Group LLC raised its position in Encompass Health by 9.6% during the 3rd quarter. Leuthold Group LLC now owns 32,828 shares of the company's stock valued at $3,988,000 after purchasing an additional 2,864 shares in the last quarter. Fulcrum Asset Management LLP bought a new stake in Encompass Health during the 3rd quarter valued at $308,000. Allspring Global Investments Holdings LLC raised its position in Encompass Health by 308.5% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,096,357 shares of the company's stock valued at $130,532,000 after purchasing an additional 827,982 shares in the last quarter. Finally, Candriam S.C.A. lifted its holdings in shares of Encompass Health by 26.5% in the 3rd quarter. Candriam S.C.A. now owns 86,035 shares of the company's stock worth $10,491,000 after buying an additional 18,035 shares during the period. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Company Profile

Encompass Health Corporation NYSE: EHC is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company's services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.

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