Encompass Health (NYSE:EHC) Sets New 12-Month High After Insider Buying Activity

Encompass Health Co. (NYSE:EHC)’s share price reached a new 52-week high during mid-day trading on Tuesday after an insider bought additional shares in the company. The company traded as high as $85.97 and last traded at $85.73, with a volume of 105271 shares. The stock had previously closed at $84.51.

Specifically, Director Greg D. Carmichael acquired 2,000 shares of Encompass Health stock in a transaction dated Friday, May 3rd. The stock was bought at an average cost of $83.73 per share, with a total value of $167,460.00. Following the acquisition, the director now owns 17,050 shares of the company’s stock, valued at $1,427,596.50. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In related news, Director Greg D. Carmichael acquired 2,000 shares of the company’s stock in a transaction on Friday, May 3rd. The stock was purchased at an average cost of $83.73 per share, for a total transaction of $167,460.00. Following the completion of the purchase, the director now directly owns 17,050 shares of the company’s stock, valued at approximately $1,427,596.50. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP John Patrick Darby sold 14,543 shares of the business’s stock in a transaction on Monday, May 6th. The shares were sold at an average price of $83.94, for a total transaction of $1,220,739.42. Following the completion of the sale, the executive vice president now owns 84,773 shares in the company, valued at approximately $7,115,845.62. The disclosure for this sale can be found here. 2.10% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on EHC. Barclays increased their price target on Encompass Health from $101.00 to $108.00 and gave the stock an “overweight” rating in a research report on Thursday, April 25th. William Blair restated an “outperform” rating on shares of Encompass Health in a research note on Wednesday, February 7th. Stephens reiterated an “overweight” rating and set a $85.00 price target on shares of Encompass Health in a research report on Tuesday, January 16th. Royal Bank of Canada restated an “outperform” rating and issued a $83.00 price objective on shares of Encompass Health in a research report on Friday, February 9th. Finally, Truist Financial upped their target price on shares of Encompass Health from $82.00 to $86.00 and gave the stock a “buy” rating in a research report on Friday, February 9th. Eight equities research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus target price of $90.29.

Encompass Health Stock Performance

The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.37 and a current ratio of 1.37. The company has a market cap of $8.65 billion, a price-to-earnings ratio of 23.22, a PEG ratio of 1.30 and a beta of 0.92. The firm’s 50-day moving average price is $79.33 and its 200 day moving average price is $71.79.

Encompass Health (NYSE:EHC) last issued its earnings results on Wednesday, April 24th. The company reported $1.12 EPS for the quarter, beating the consensus estimate of $0.93 by $0.19. Encompass Health had a net margin of 7.60% and a return on equity of 18.01%. The company had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter in the previous year, the company posted $0.88 EPS. The business’s revenue for the quarter was up 13.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Encompass Health Co. will post 4.1 EPS for the current year.

Encompass Health Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, July 15th. Stockholders of record on Monday, July 1st will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, June 28th. This represents a $0.60 annualized dividend and a dividend yield of 0.70%. Encompass Health’s payout ratio is currently 16.22%.

Institutional Trading of Encompass Health

A number of hedge funds have recently modified their holdings of the company. Principal Securities Inc. bought a new stake in shares of Encompass Health in the fourth quarter worth about $25,000. Benjamin F. Edwards & Company Inc. grew its position in shares of Encompass Health by 360.2% in the 4th quarter. Benjamin F. Edwards & Company Inc. now owns 405 shares of the company’s stock valued at $27,000 after purchasing an additional 317 shares during the period. McGlone Suttner Wealth Management Inc. acquired a new stake in Encompass Health during the 4th quarter worth approximately $30,000. GAMMA Investing LLC acquired a new stake in Encompass Health during the 4th quarter worth approximately $33,000. Finally, C M Bidwell & Associates Ltd. acquired a new position in shares of Encompass Health in the third quarter valued at approximately $35,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

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.