Encompass Health (NYSE:EHC) Reaches New 1-Year High – Here’s Why

Shares of Encompass Health Corporation (NYSE:EHC) reached a new 52-week high on Wednesday. The stock traded as high as $139.27 and last traded at $139.51, with a volume of 169,810 shares trading hands. The stock had previously closed at $134.79.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. TD Cowen upped their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday, October 30th. Weiss Ratings upgraded shares of Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Barclays upped their price target on shares of Encompass Health from $144.00 to $151.00 and gave the stock an “overweight” rating in a research report on Thursday, October 29th. Truist Financial reiterated a “buy” rating and set a $156.00 price objective (up from $150.00) on shares of Encompass Health in a research note on Friday, October 30th. Finally, Mizuho set a $155.00 price objective on shares of Encompass Health in a report on Monday. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average price target of $154.25.

Encompass Health Trading Up 4.3%

The company’s 50 day simple moving average is $123.51 and its two-hundred day simple moving average is $110.34. The company has a quick ratio of 1.19, a current ratio of 1.09 and a debt-to-equity ratio of 0.73. The company has a market capitalization of $13.87 billion, a price-to-earnings ratio of 21.97, a P/E/G ratio of 2.38 and a beta of 0.83.

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

Encompass Health Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be issued a dividend of $0.21 per share. This represents a $0.84 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Monday, January 4th. Encompass Health’s dividend payout ratio (DPR) is 13.12%.

Insider Activity at Encompass Health

In other Encompass Health news, EVP John Darby sold 8,906 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.95, for a total value of $1,121,710.70. Following the completion of the transaction, the executive vice president owned 75,041 shares in the company, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Mark Tarr sold 173,148 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.47, for a total value of $21,724,879.56. Following the transaction, the chief executive officer owned 267,814 shares in the company, valued at $33,602,622.58. This represents a 39.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 186,912 shares of company stock valued at $23,434,845. Insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in Encompass Health in the 2nd quarter valued at $1,059,762,000. William Blair Investment Management LLC acquired a new stake in Encompass Health during the 2nd quarter worth $116,352,000. Allspring Global Investments Holdings LLC boosted its stake in Encompass Health by 308.5% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,096,357 shares of the company’s stock worth $130,532,000 after purchasing an additional 827,982 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in Encompass Health during the 2nd quarter worth $81,676,000. Finally, Bank of America Corp DE purchased a new stake in shares of Encompass Health during the second quarter worth $79,660,000. Hedge funds and other institutional investors own 97.25% of the company’s stock.

About Encompass Health

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.