Encompass Health (NYSE:EHC) Sets New 52-Week High After Strong Earnings

Encompass Health Co. (NYSE:EHC - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $102.36 and last traded at $99.93, with a volume of 41616 shares trading hands. The stock had previously closed at $93.09.

The company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.09. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same period last year, the firm earned $0.86 earnings per share. Encompass Health's revenue was up 11.9% compared to the same quarter last year.

Encompass Health Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Thursday, January 2nd will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Thursday, January 2nd. This represents a $0.68 dividend on an annualized basis and a yield of 0.68%. Encompass Health's dividend payout ratio is presently 16.43%.

Encompass Health declared that its board has authorized a share repurchase plan on Wednesday, July 24th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to buy up to 5.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. Truist Financial boosted their target price on shares of Encompass Health from $104.00 to $108.00 and gave the stock a "buy" rating in a research note on Monday, October 14th. Barclays boosted their target price on shares of Encompass Health from $109.00 to $116.00 and gave the company an "overweight" rating in a report on Tuesday. KeyCorp upped their price objective on shares of Encompass Health from $115.00 to $117.00 and gave the stock an "overweight" rating in a report on Tuesday. UBS Group upped their price objective on shares of Encompass Health from $100.00 to $110.00 and gave the stock a "buy" rating in a report on Wednesday, September 25th. Finally, Leerink Partnrs raised shares of Encompass Health to a "strong-buy" rating in a research note on Wednesday, July 10th. Nine research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, Encompass Health currently has a consensus rating of "Buy" and a consensus target price of $105.67.

Insider Buying and Selling at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction on Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total value 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 2.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Encompass Health

Several institutional investors have recently modified their holdings of the company. Commonwealth Equity Services LLC lifted its holdings in Encompass Health by 1.3% in the second quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company's stock worth $845,000 after purchasing an additional 123 shares during the period. Legacy Wealth Asset Management LLC increased its holdings in shares of Encompass Health by 1.5% in the 1st quarter. Legacy Wealth Asset Management LLC now owns 8,619 shares of the company's stock valued at $712,000 after purchasing an additional 130 shares during the period. Smith Group Asset Management LLC increased its holdings in Encompass Health by 1.2% in the first quarter. Smith Group Asset Management LLC now owns 12,070 shares of the company's stock worth $997,000 after buying an additional 140 shares during the last quarter. V Square Quantitative Management LLC increased its holdings in Encompass Health by 53.0% in the third quarter. V Square Quantitative Management LLC now owns 404 shares of the company's stock worth $39,000 after buying an additional 140 shares during the last quarter. Finally, O Shaughnessy Asset Management LLC increased its holdings in Encompass Health by 3.9% in the first quarter. O Shaughnessy Asset Management LLC now owns 4,246 shares of the company's stock worth $351,000 after buying an additional 160 shares during the last quarter. Institutional investors own 97.25% of the company's stock.

Encompass Health Stock Up 7.4 %

The stock has a market cap of $10.06 billion, a price-to-earnings ratio of 24.14, a P/E/G ratio of 1.45 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 business has a fifty day moving average of $93.90 and a 200 day moving average of $88.52.

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.