Encompass Health (NYSE:EHC) Sets New 12-Month High After Earnings Beat

Encompass Health Corporation (NYSE:EHC)’s share price hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $133.75 and last traded at $128.1350, with a volume of 224,982 shares trading hands. The stock had previously closed at $122.09.

The company reported $1.52 EPS for the quarter, topping analysts’ consensus estimates of $1.36 by $0.16. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%. The business had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same period in the previous year, the firm earned $1.23 earnings per share. The firm’s quarterly revenue was up 8.9% compared to the same quarter last year.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, January 4th. Encompass Health’s dividend payout ratio is presently 13.68%.

Analyst Ratings Changes

Several research analysts have recently weighed in on EHC shares. Barclays reaffirmed an “overweight” rating and set a $151.00 price objective on shares of Encompass Health in a research report on Thursday. Raymond James Financial set a $150.00 price objective on shares of Encompass Health in a research report on Monday, September 28th. UBS Group increased their target price on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a report on Friday, August 7th. TD Cowen increased their price objective on shares of Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. Finally, Weiss Ratings upgraded Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $149.67.

Insider Buying and Selling

In other news, CEO Mark J. Tarr sold 173,148 shares of the 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 sale, the chief executive officer directly owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP John Darby sold 8,906 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the transaction, the executive vice president owned 75,041 shares of the company’s stock, valued at $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 186,912 shares of company stock worth $23,434,845. 1.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Vise Technologies Inc. grew its holdings in shares of Encompass Health by 17.1% during the 3rd quarter. Vise Technologies Inc. now owns 6,524 shares of the company’s stock valued at $793,000 after purchasing an additional 951 shares during the last quarter. State of Wyoming grew its stake in shares of Encompass Health by 262.1% during the third quarter. State of Wyoming now owns 2,506 shares of the company’s stock worth $304,000 after buying an additional 1,814 shares during the last quarter. Choreo LLC bought a new stake in shares of Encompass Health during the third quarter worth $230,000. Childress Capital Advisors LLC increased its holdings in shares of Encompass Health by 5.1% during the third quarter. Childress Capital Advisors LLC now owns 2,189 shares of the company’s stock worth $266,000 after buying an additional 106 shares in the last quarter. Finally, BOKF NA lifted its stake in shares of Encompass Health by 0.7% in the 3rd quarter. BOKF NA now owns 55,437 shares of the company’s stock valued at $6,735,000 after acquiring an additional 400 shares during the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health Stock Up 4.8%

The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. The company has a market capitalization of $12.63 billion, a P/E ratio of 20.92, a PEG ratio of 2.51 and a beta of 0.74. The stock has a 50 day moving average price of $122.39 and a 200 day moving average price of $109.67.

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.