Encompass Health (NYSE:EHC) Raised to “Strong-Buy” at KeyCorp

Encompass Health (NYSE:EHC) was upgraded by stock analysts at KeyCorp to a “strong-buy” rating in a note issued to investors on Thursday, Zacks.com reports.

Several other research firms have also commented on EHC. Royal Bank of Canada upped their price target on shares of Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a report on Thursday, September 26th. UBS Group upped their price target on shares of Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a report on Wednesday, September 25th. Leerink Partners initiated coverage on shares of Encompass Health in a research note on Wednesday, July 10th. They set an “outperform” rating and a $100.00 target price on the stock. Leerink Partnrs raised shares of Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Finally, Stephens reissued an “overweight” rating and set a $105.00 target price on shares of Encompass Health in a research note on Tuesday, August 6th. Eight analysts have rated the stock with a buy rating and three have issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, Encompass Health presently has an average rating of “Buy” and an average target price of $104.22.

Encompass Health Price Performance

NYSE EHC opened at $95.92 on Thursday. Encompass Health has a 1 year low of $57.55 and a 1 year high of $97.56. 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 company has a market cap of $9.65 billion, a price-to-earnings ratio of 24.47, a PEG ratio of 1.43 and a beta of 0.88. The stock’s fifty day moving average price is $91.81 and its 200 day moving average price is $87.21.

Encompass Health (NYSE:EHC) last posted its quarterly earnings results on Monday, August 5th. The company reported $1.11 EPS for the quarter, beating the consensus estimate of $1.01 by $0.10. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The company had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.30 billion. During the same period in the prior year, the company earned $0.95 earnings per share. The firm’s revenue was up 9.6% on a year-over-year basis. As a group, equities research analysts forecast that Encompass Health will post 4.18 earnings per share for the current year.

Encompass Health announced that its board has initiated a stock buyback program on Wednesday, July 24th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value 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 trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 2.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. UMB Bank n.a. lifted its stake in Encompass Health by 387.7% in the 3rd quarter. UMB Bank n.a. now owns 317 shares of the company’s stock worth $31,000 after purchasing an additional 252 shares in the last quarter. Oakworth Capital Inc. purchased a new stake in shares of Encompass Health during the 2nd quarter valued at approximately $40,000. Benjamin F. Edwards & Company Inc. raised its position in shares of Encompass Health by 58.9% during the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock valued at $46,000 after buying an additional 198 shares during the period. GAMMA Investing LLC raised its position in shares of Encompass Health by 31.9% during the 1st quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock valued at $51,000 after buying an additional 149 shares during the period. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of Encompass Health during the 2nd quarter valued at approximately $58,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

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.