Encompass Health Co. (NYSE:EHC) Receives Average Recommendation of "Buy" from Brokerages

Encompass Health Co. (NYSE:EHC - Get Free Report) has received an average recommendation of "Buy" from the eleven research firms that are currently covering the company, MarketBeat Ratings reports. Eight analysts have rated the stock with a buy recommendation and three have issued a strong buy recommendation on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $104.67.

Several research analysts have recently weighed in on EHC shares. Leerink Partnrs raised shares of Encompass Health to a "strong-buy" rating in a report on Wednesday, July 10th. KeyCorp started coverage on shares of Encompass Health in a report on Friday, October 11th. They issued an "overweight" rating and a $115.00 price target on the stock. UBS Group upped their price target 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. Royal Bank of Canada upped their price target on shares of Encompass Health from $95.00 to $105.00 and gave the stock an "outperform" rating in a report on Thursday, September 26th. Finally, Leerink Partners started coverage on shares of Encompass Health in a report on Wednesday, July 10th. They issued an "outperform" rating and a $100.00 price target on the stock.

Insider Activity 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 transaction of $1,058,528.40. Following the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 2.10% of the stock is owned by corporate insiders.

Institutional Trading of Encompass Health

Several hedge funds have recently bought and sold shares of the stock. Commonwealth Equity Services LLC lifted its stake in Encompass Health by 1.3% in the 2nd quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company's stock worth $845,000 after purchasing an additional 123 shares in the last quarter. Legacy Wealth Asset Management LLC lifted its stake in Encompass Health by 1.5% in the 1st quarter. Legacy Wealth Asset Management LLC now owns 8,619 shares of the company's stock worth $712,000 after purchasing an additional 130 shares in the last quarter. Smith Group Asset Management LLC increased its holdings in shares of Encompass Health by 1.2% in the 1st 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 shares of Encompass Health by 53.0% in the 3rd 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, GAMMA Investing LLC increased its holdings in shares of Encompass Health by 31.9% in the 1st quarter. GAMMA Investing LLC now owns 616 shares of the company's stock worth $51,000 after buying an additional 149 shares during the last quarter. Hedge funds and other institutional investors own 97.25% of the company's stock.

Encompass Health Stock Performance

Shares of NYSE:EHC traded down $0.47 during trading on Thursday, hitting $96.90. 343,936 shares of the company were exchanged, compared to its average volume of 626,470. The company has a market cap of $9.76 billion, a PE ratio of 26.19, a P/E/G ratio of 1.43 and a beta of 0.88. The stock has a 50 day moving average of $92.62 and a 200 day moving average of $87.67. Encompass Health has a 52-week low of $57.55 and a 52-week high of $98.74. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.35 and a quick ratio of 1.35.

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

Encompass Health declared that its Board of Directors has authorized a stock buyback program on Wednesday, July 24th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board of directors believes its stock is undervalued.

Encompass Health Increases Dividend

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

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.