Encompass Health (NYSE:EHC) Hits New 52-Week High – What’s Next?

Encompass Health Corporation (NYSE:EHC)’s stock price reached a new 52-week high on Wednesday. The stock traded as high as $143.61 and last traded at $140.88, with a volume of 23,959 shares changing hands. The stock had previously closed at $142.51.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on EHC shares. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday, October 31st. KeyCorp raised their target price on shares of Encompass Health from $147.00 to $150.00 and gave the stock an “overweight” rating in a report on Friday, October 30th. Weiss Ratings raised shares of Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Raymond James Financial reiterated a “strong-buy” rating and set a $155.00 price target on shares of Encompass Health in a report on Friday, October 30th. Finally, UBS Group increased their price target on shares of Encompass Health from $155.00 to $165.00 and gave the company a “buy” rating in a research report on Friday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Encompass Health currently has a consensus rating of “Buy” and a consensus target price of $154.25.

Encompass Health Price Performance

The company has a market cap of $13.77 billion, a PE ratio of 21.95, a price-to-earnings-growth ratio of 2.45 and a beta of 0.83. The business has a 50 day moving average of $125.54 and a 200 day moving average of $111.36. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.09 and a quick ratio of 1.09.

Encompass Health (NYSE:EHC) last issued its quarterly earnings data on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.16. Encompass Health had a net margin of 10.17% and a return on equity of 18.35%. The business had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the previous year, the firm earned $1.23 EPS. The company’s quarterly revenue was up 8.9% compared to the same quarter last year. As a group, research analysts predict that Encompass Health Corporation will post 6.29 EPS for the current year.

Encompass Health Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be given a dividend of $0.21 per share. The ex-dividend date 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 Transactions at Encompass Health

In related news, EVP John Darby sold 4,858 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $121.09, for a total value of $588,255.22. Following the completion of the transaction, the executive vice president directly owned 75,041 shares of the company’s stock, valued at $9,086,714.69. This represents a 6.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 1.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in EHC. BlackRock Inc. purchased a new position in shares of Encompass Health in the 2nd quarter valued at approximately $1,059,762,000. Dimensional Fund Advisors LP grew its stake in Encompass Health by 3.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,674,784 shares of the company’s stock worth $162,013,000 after purchasing an additional 50,647 shares during the period. Boston Partners bought a new position in Encompass Health in the third quarter worth $158,053,000. William Blair Investment Management LLC raised its holdings in Encompass Health by 1.3% in the third quarter. William Blair Investment Management LLC now owns 1,166,552 shares of the company’s stock worth $141,724,000 after purchasing an additional 15,467 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC lifted its position in Encompass Health by 308.5% during the third quarter. Allspring Global Investments Holdings LLC now owns 1,096,357 shares of the company’s stock valued at $130,532,000 after buying an additional 827,982 shares during the period. Hedge funds and other institutional investors own 97.25% of the company’s stock.

About Encompass Health

Encompass Health Corporation is a U.S. healthcare provider focused on inpatient rehabilitation. The company operates rehabilitation hospitals that offer specialized care for people recovering from conditions such as strokes, brain and spinal cord injuries, orthopedic conditions, and other illnesses or injuries. Its hospitals provide coordinated rehabilitation services, including physical, occupational, and speech therapy, alongside medical care. Encompass Health serves patients through facilities across the United States.