Encompass Health (NYSE:EHC) Shares Gap Up – Here’s What Happened

Encompass Health Corporation (NYSE:EHC)’s stock price gapped up prior to trading on Monday . The stock had previously closed at $97.39, but opened at $102.08. Encompass Health shares last traded at $103.5710, with a volume of 234,230 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on EHC. Barclays upped their price objective on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research note on Friday, February 6th. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $143.29.

Encompass Health Stock Performance

The company’s fifty day moving average price is $102.74 and its 200 day moving average price is $109.86. The company has a market cap of $10.51 billion, a PE ratio of 19.08, a P/E/G ratio of 1.87 and a beta of 0.75. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.08 and a quick ratio of 1.08.

Encompass Health (NYSE:EHC) last announced its earnings results on Thursday, February 5th. The company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.29 by $0.17. The company had revenue of $3.09 billion during the quarter, compared to the consensus estimate of $1.54 billion. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The firm’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.17 earnings per share. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. On average, equities research analysts predict that Encompass Health Corporation will post 4.8 earnings per share for the current year.

Encompass Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st will be issued a $0.19 dividend. The ex-dividend date is Wednesday, April 1st. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. Encompass Health’s dividend payout ratio is currently 13.72%.

Insider Activity

In other news, CEO Mark J. Tarr sold 150,000 shares of the stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total value of $16,746,000.00. Following the completion of the sale, the chief executive officer owned 377,070 shares in the company, valued at $42,096,094.80. This represents a 28.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Treasurer Edmund Fay sold 11,937 shares of the firm’s stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the sale, the treasurer owned 89,325 shares of the company’s stock, valued at $9,557,775. This trade represents a 11.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 2.00% of the company’s stock.

Institutional Trading of Encompass Health

Several hedge funds have recently added to or reduced their stakes in EHC. Northwestern Mutual Wealth Management Co. raised its position in Encompass Health by 3,059,159.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after acquiring an additional 3,793,358 shares during the period. Norges Bank bought a new stake in Encompass Health in the fourth quarter worth about $133,221,000. Price T Rowe Associates Inc. MD raised its position in Encompass Health by 24.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock worth $510,047,000 after acquiring an additional 948,202 shares during the period. Millennium Management LLC raised its position in Encompass Health by 140.0% in the third quarter. Millennium Management LLC now owns 1,223,665 shares of the company’s stock worth $155,430,000 after acquiring an additional 713,738 shares during the period. Finally, 8 Knots Management LLC bought a new stake in Encompass Health in the second quarter worth about $78,644,000. Institutional investors own 97.25% of the company’s stock.

About Encompass Health

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.