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

Encompass Health Co. (NYSE:EHC - Get Free Report) 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 changing hands. The stock had previously closed at $96.33.

Analyst Upgrades and Downgrades

EHC has been the subject of a number of recent analyst reports. KeyCorp initiated coverage on shares of Encompass Health in a research report on Friday, October 11th. They set an "overweight" rating and a $115.00 price target for the company. Leerink Partners began coverage on Encompass Health in a research report on Wednesday, July 10th. They issued an "outperform" rating and a $100.00 target price on the stock. Royal Bank of Canada raised their price target on Encompass Health from $95.00 to $105.00 and gave the stock an "outperform" rating in a research report on Thursday, September 26th. Truist Financial increased their target price on Encompass Health from $104.00 to $108.00 and gave the stock a "buy" rating in a research note on Monday. Finally, Leerink Partnrs upgraded Encompass Health to a "strong-buy" rating in a report on Wednesday, July 10th. Eight equities research analysts have rated the stock with a buy rating and three have issued a strong buy rating to the company. According to MarketBeat, Encompass Health currently has a consensus rating of "Buy" and an average price target of $104.67.

Encompass Health Stock Up 1.1 %

The business has a 50-day simple moving average of $92.43 and a 200-day simple moving average of $87.61. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.35 and a current ratio of 1.35. The company has a market cap of $9.81 billion, a price-to-earnings ratio of 26.32, a price-to-earnings-growth ratio of 1.43 and a beta of 0.88.

Encompass Health (NYSE:EHC - Get Free Report) last issued its quarterly 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. 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 during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter in the previous year, the firm earned $0.95 earnings per share. The firm's quarterly revenue was up 9.6% on a year-over-year basis. On average, equities analysts anticipate that Encompass Health Co. will post 4.18 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 15th. Shareholders of record on Tuesday, October 1st were paid a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, October 1st. This is a boost from Encompass Health's previous quarterly dividend of $0.15. This represents a $0.68 dividend on an annualized basis and a yield of 0.70%. Encompass Health's dividend payout ratio (DPR) is currently 18.38%.

Encompass Health declared that its board has approved a share repurchase plan on Wednesday, July 24th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 5.4% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its stock is undervalued.

Insider Transactions at Encompass Health

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the business's 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 completion of the sale, the chief financial officer now 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 2.10% of the company's stock.

Hedge Funds Weigh In On Encompass Health

Several hedge funds have recently made changes to their positions in EHC. UMB Bank n.a. grew its position in shares of Encompass Health by 387.7% during 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 during the last quarter. Oakworth Capital Inc. acquired a new position in Encompass Health in the second quarter valued at $40,000. Benjamin F. Edwards & Company Inc. increased its stake in Encompass Health by 58.9% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company's stock valued at $46,000 after purchasing an additional 198 shares during the period. GAMMA Investing LLC raised its holdings in shares of 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 buying an additional 149 shares during the last quarter. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of Encompass Health during the second quarter worth about $58,000. Hedge funds and other institutional investors 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.