Encompass Health Co. (NYSE:EHC) Sees Significant Drop in Short Interest

Encompass Health Co. (NYSE:EHC) was the recipient of a significant decrease in short interest in August. As of August 31st, there was short interest totalling 1,290,000 shares, a decrease of 15.7% from the August 15th total of 1,530,000 shares. Based on an average daily trading volume, of 645,700 shares, the short-interest ratio is currently 2.0 days. Approximately 1.3% of the company’s stock are sold short.

Encompass Health Stock Performance

EHC stock traded up $0.53 during midday trading on Monday, hitting $93.78. 137,433 shares of the stock traded hands, compared to its average volume of 630,309. The firm has a market cap of $9.44 billion, a P/E ratio of 25.36, a PEG ratio of 1.39 and a beta of 0.88. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.35 and a quick ratio of 1.35. The stock’s fifty day simple moving average is $89.30 and its 200-day simple moving average is $84.77. Encompass Health has a 1-year low of $57.55 and a 1-year high of $94.59.

Encompass Health (NYSE:EHC) last released its earnings results on Monday, August 5th. The company reported $1.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.01 by $0.10. The business had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.30 billion. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The company’s revenue for the quarter was up 9.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.95 earnings per share. On average, analysts expect that Encompass Health will post 4.18 earnings per share for the current year.

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st will be issued a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, October 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.73%. This is a positive change from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s payout ratio is presently 18.38%.

Analyst Upgrades and Downgrades

EHC has been the topic of a number of research reports. Royal Bank of Canada raised their price target on Encompass Health from $83.00 to $95.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 22nd. UBS Group raised their price target on Encompass Health from $96.00 to $100.00 and gave the stock a “buy” rating in a research note on Thursday, August 8th. Leerink Partnrs upgraded Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Leerink Partners initiated coverage on Encompass Health in a report on Wednesday, July 10th. They issued an “outperform” rating and a $100.00 target price on the stock. Finally, Barclays dropped their price target on Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a research report on Tuesday, August 6th. Nine analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Encompass Health currently has a consensus rating of “Buy” and a consensus price target of $100.38.

Insider Transactions at Encompass Health

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of the stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the sale, the chief financial officer now directly owns 136,227 shares in the company, valued at approximately $11,761,839.18. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Heritage Wealth Management Inc. acquired a new position in shares of Encompass Health in the second quarter valued at approximately $1,290,000. Sanctuary Advisors LLC purchased a new stake in shares of Encompass Health in the second quarter valued at approximately $1,384,000. Cetera Investment Advisers boosted its stake in shares of Encompass Health by 5.7% in the second quarter. Cetera Investment Advisers now owns 12,353 shares of the company’s stock valued at $1,060,000 after buying an additional 664 shares in the last quarter. Truist Financial Corp boosted its stake in shares of Encompass Health by 1.1% in the second quarter. Truist Financial Corp now owns 19,338 shares of the company’s stock valued at $1,659,000 after buying an additional 205 shares in the last quarter. Finally, Point72 Asset Management L.P. purchased a new stake in shares of Encompass Health in the second quarter valued at approximately $2,914,000. Institutional investors and hedge funds own 97.25% of the company’s stock.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.