Encompass Health (NYSE:EHC) Shares Gap Up Following Dividend Announcement

Shares of Encompass Health Corporation (NYSE:EHC) gapped up before the market opened on Friday following a dividend announcement from the company. The stock had previously closed at $111.06, but opened at $115.00. Encompass Health shares last traded at $115.2860, with a volume of 61,176 shares.

The newly announced dividend which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health’s payout ratio is 12.69%.

Analysts Set New Price Targets

EHC has been the topic of several research reports. Barclays reduced their price target on shares of Encompass Health from $153.00 to $140.00 and set an “overweight” rating on the stock in a research report on Tuesday, May 5th. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. Weiss Ratings downgraded shares of Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, June 26th. Leerink Partners set a $152.00 target price on shares of Encompass Health in a research report on Friday, May 22nd. Finally, TD Cowen started coverage on shares of Encompass Health in a report on Thursday, May 28th. They issued a “buy” rating and a $125.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $143.86.

Encompass Health Stock Up 4.1%

The company has a market cap of $11.47 billion, a PE ratio of 19.32, a price-to-earnings-growth ratio of 2.42 and a beta of 0.74. The company has a fifty day moving average of $104.85 and a two-hundred day moving average of $103.74. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.60 EPS for the quarter, topping the consensus estimate of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The company had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. Encompass Health’s quarterly revenue was up 9.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, analysts anticipate that Encompass Health Corporation will post 5.96 earnings per share for the current fiscal year.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $104.56, for a total value of $71,309.92. Following the sale, the executive vice president owned 24,755 shares in the company, valued at $2,588,382.80. This trade represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada grew its stake in Encompass Health by 21.5% in the first quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock worth $8,960,000 after purchasing an additional 15,677 shares in the last quarter. Millennium Management LLC raised its position in Encompass Health by 38.4% during the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock valued at $9,338,000 after purchasing an additional 25,574 shares in the last quarter. Caxton Associates LLP purchased a new stake in shares of Encompass Health in the 1st quarter worth $259,000. Walleye Capital LLC grew its position in shares of Encompass Health by 667.6% during the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock worth $800,000 after buying an additional 7,671 shares in the last quarter. Finally, Gamco Investors INC. ET AL bought a new position in shares of Encompass Health during the 2nd quarter worth $588,000. Institutional investors own 97.25% of the company’s stock.

Encompass Health Company Profile

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.