Encompass Health (NYSE:EHC) Share Price Breaks Above 200-Day Moving Average – What’s Next?

Encompass Health Corporation (NYSE:EHC) passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $109.95 and traded as high as $122.66. Encompass Health shares last traded at $121.14, with a volume of 1,061,636 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on EHC shares. Truist Financial increased their target price on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Friday, August 7th. UBS Group lifted their price target on shares of Encompass Health from $150.00 to $155.00 and gave the company 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. Barclays raised their price objective on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Finally, Raymond James Financial set a $150.00 target price on shares of Encompass Health in a report on Monday, September 28th. 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. According to data from MarketBeat, Encompass Health currently has an average rating of “Buy” and an average price target of $148.50.

Encompass Health Stock Performance

The company has a market capitalization of $12.08 billion, a P/E ratio of 19.94, a P/E/G ratio of 2.45 and a beta of 0.74. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. The business’s fifty day simple moving average is $120.92 and its 200-day simple moving average is $110.12.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter in the prior year, the firm earned $1.40 EPS. The business’s revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, equities analysts anticipate that Encompass Health Corporation will post 6.08 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be issued a dividend of $0.21 per share. The ex-dividend date is Thursday, October 1st. This represents a $0.84 annualized dividend and a yield of 0.7%. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio (DPR) is 13.68%.

Insider Buying and Selling

In other news, EVP John Darby sold 4,858 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $121.09, for a total transaction of $588,255.22. Following the completion of the transaction, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,086,714.69. This represents a 6.08% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the completion of the transaction, the chief executive officer directly owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 186,912 shares of company stock worth $23,434,845. Corporate insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Transamerica Financial Advisors LLC purchased a new stake in shares of Encompass Health during the 2nd quarter valued at about $29,000. Persistent Asset Partners Ltd bought a new stake in Encompass Health during the second quarter worth approximately $36,000. Keating Financial Advisory Services Inc. purchased a new stake in Encompass Health during the second quarter valued at approximately $39,000. Assetmark Inc. raised its position in Encompass Health by 89.6% during the first quarter. Assetmark Inc. now owns 455 shares of the company’s stock valued at $44,000 after purchasing an additional 215 shares during the period. Finally, Harbor Investment Advisory LLC bought a new stake in shares of Encompass Health in the 2nd quarter valued at approximately $56,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

Encompass Health Company Profile

Encompass Health Corporation (NYSE:EHC) is a healthcare services company focused on inpatient rehabilitation. Through its network of rehabilitation hospitals, the company provides intensive medical and therapeutic care to patients recovering from conditions such as strokes, brain and spinal cord injuries, hip fractures, amputations, neurological disorders, and other disabling illnesses or injuries.

Its rehabilitation hospitals offer coordinated care from physicians, nurses, therapists, and other healthcare professionals.