Encompass Health (NYSE:EHC) Trading 6.6% Higher on Strong Earnings

Encompass Health Corporation (NYSE:EHC)’s stock price shot up 6.6% during trading on Friday following a stronger than expected earnings report. The stock traded as high as $107.97 and last traded at $106.5660. 168,392 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 1,143,215 shares. The stock had previously closed at $100.00.

The company reported $1.60 EPS for the quarter, beating analysts’ consensus estimates of $1.51 by $0.09. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The company had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period last year, the business earned $1.37 earnings per share. Encompass Health’s revenue was up 9.0% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS.

Encompass Health Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st were given a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Wednesday, April 1st. Encompass Health’s dividend payout ratio (DPR) is 13.72%.

Analyst Ratings Changes

A number of research firms have recently commented on EHC. Barclays raised their price objective on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Wall Street Zen lowered shares of Encompass Health from a “buy” rating to a “hold” rating in a research report on Saturday, April 11th. Two research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Encompass Health has an average rating of “Buy” and an average target price of $146.33.

Insider Activity at Encompass Health

In other Encompass Health news, Treasurer Edmund Fay sold 11,937 shares of Encompass Health stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the completion of the sale, the treasurer directly owned 89,325 shares in the company, valued at $9,557,775. The trade was a 11.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Mark J. Tarr sold 150,000 shares of Encompass Health stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following the sale, the chief executive officer owned 377,070 shares of the company’s stock, valued at approximately $42,096,094.80. The trade was a 28.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

Hedge funds have recently bought and sold shares of the stock. Thrivent Financial for Lutherans raised its stake in shares of Encompass Health by 57.8% during the third quarter. Thrivent Financial for Lutherans now owns 1,194,859 shares of the company’s stock worth $151,544,000 after acquiring an additional 437,464 shares in the last quarter. Ethic Inc. purchased a new position in shares of Encompass Health during the third quarter worth approximately $1,272,000. Jennison Associates LLC raised its stake in shares of Encompass Health by 12.8% during the third quarter. Jennison Associates LLC now owns 894,511 shares of the company’s stock worth $113,621,000 after acquiring an additional 101,274 shares in the last quarter. Tudor Investment Corp ET AL raised its stake in shares of Encompass Health by 155.3% during the third quarter. Tudor Investment Corp ET AL now owns 210,712 shares of the company’s stock worth $26,765,000 after acquiring an additional 128,191 shares in the last quarter. Finally, AlphaQuest LLC increased its stake in shares of Encompass Health by 170.9% in the third quarter. AlphaQuest LLC now owns 29,916 shares of the company’s stock worth $3,800,000 after buying an additional 18,874 shares during the period. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Trading Up 6.1%

The company has a debt-to-equity ratio of 0.76, a current ratio of 1.08 and a quick ratio of 1.08. The firm’s 50 day moving average is $103.05 and its 200 day moving average is $107.65. The company has a market capitalization of $10.55 billion, a PE ratio of 19.13, a P/E/G ratio of 1.97 and a beta of 0.75.

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.