Encompass Health (NYSE:EHC) Reaches New 1-Year High – Should You Buy?

Encompass Health Co. (NYSE:EHC)’s share price reached a new 52-week high during trading on Wednesday . The company traded as high as $98.32 and last traded at $98.27, with a volume of 73699 shares traded. The stock had previously closed at $96.33.

Analyst Ratings Changes

EHC has been the topic of a number of recent research reports. Stephens restated an “overweight” rating and issued a $105.00 target price on shares of Encompass Health in a report on Tuesday, August 6th. Royal Bank of Canada upped their price objective on shares of Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a research note on Thursday, September 26th. Barclays lowered their target price on shares of Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a research note on Tuesday, August 6th. Leerink Partnrs raised Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Finally, UBS Group increased their target price on Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research report on Wednesday, September 25th. Eight investment analysts have rated the stock with a buy rating and three have assigned a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $104.67.

Encompass Health Stock Down 0.5 %

The stock has a fifty day moving average price of $92.62 and a 200-day moving average price of $87.67. The firm has a market cap of $9.76 billion, a PE ratio of 26.19, a PEG ratio of 1.43 and a beta of 0.88. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.35 and a current ratio of 1.35.

Encompass Health (NYSE:EHC) last issued its earnings results on Monday, August 5th. The company reported $1.11 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.10. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The business had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the firm posted $0.95 EPS. The business’s revenue for the quarter was up 9.6% compared to the same quarter last year. Research analysts expect that Encompass Health Co. will post 4.18 EPS for the current year.

Encompass Health Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be paid a $0.17 dividend. The ex-dividend date is Thursday, January 2nd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.70%. Encompass Health’s dividend payout ratio (DPR) is currently 18.38%.

Encompass Health declared that its board has approved a stock repurchase program on Wednesday, July 24th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 5.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In other news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction that occurred on Tuesday, August 13th. The shares were 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 owns 136,227 shares in the company, valued at $11,761,839.18. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.10% of the stock is owned by company insiders.

Institutional Trading of Encompass Health

Several large investors have recently modified their holdings of the business. UMB Bank n.a. lifted its stake in shares of Encompass Health by 387.7% in the third quarter. UMB Bank n.a. now owns 317 shares of the company’s stock worth $31,000 after acquiring an additional 252 shares in the last quarter. V Square Quantitative Management LLC boosted its stake in shares of Encompass Health by 53.0% during the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock valued at $39,000 after buying an additional 140 shares during the last quarter. Oakworth Capital Inc. acquired a new stake in shares of Encompass Health during the second quarter worth approximately $40,000. Benjamin F. Edwards & Company Inc. increased its stake in shares of Encompass Health by 58.9% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock worth $46,000 after buying an additional 198 shares during the last quarter. Finally, GAMMA Investing LLC raised its holdings in Encompass Health by 31.9% in the first quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock valued at $51,000 after acquiring an additional 149 shares in the last quarter. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Encompass Health Company Profile

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.