Encompass Health (NYSE:EHC) Hits New 1-Year High After Analyst Upgrade

Encompass Health Corporation (NYSE:EHC)’s stock price reached a new 52-week high during mid-day trading on Thursday after Bank of America raised their price target on the stock from $145.00 to $160.00. Bank of America currently has a buy rating on the stock. Encompass Health traded as high as $126.65 and last traded at $126.70, with a volume of 256496 shares trading hands. The stock had previously closed at $124.60.

A number of other research firms have also issued reports on EHC. KeyCorp boosted their target price on Encompass Health from $122.00 to $135.00 and gave the company an “overweight” rating in a report on Tuesday, May 27th. UBS Group lifted their price target on Encompass Health from $130.00 to $140.00 and gave the company a “buy” rating in a research note on Wednesday, August 6th. Wall Street Zen downgraded Encompass Health from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 6th. Stephens upgraded Encompass Health from an “overweight” rating to a “strong-buy” rating and set a $135.00 price target on the stock in a research note on Thursday, June 5th. Finally, Truist Financial lifted their price target on Encompass Health from $135.00 to $140.00 and gave the company a “buy” rating in a research note on Thursday, August 14th. One analyst has rated the stock with a Strong Buy rating and seven have issued a Buy rating to the company’s stock. According to MarketBeat, Encompass Health presently has an average rating of “Buy” and an average target price of $137.71.

Insider Buying and Selling

In other Encompass Health news, EVP Patrick William Tuer sold 1,020 shares of the business’s stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $123.59, for a total transaction of $126,061.80. Following the sale, the executive vice president directly owned 18,846 shares in the company, valued at approximately $2,329,177.14. The trade was a 5.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Institutional investors have recently made changes to their positions in the stock. EP Wealth Advisors LLC increased its stake in Encompass Health by 2.4% in the second quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company’s stock valued at $453,000 after purchasing an additional 88 shares during the last quarter. Pinnacle Wealth Planning Services Inc. increased its stake in Encompass Health by 4.0% in the first quarter. Pinnacle Wealth Planning Services Inc. now owns 2,597 shares of the company’s stock valued at $263,000 after purchasing an additional 99 shares during the last quarter. Securian Asset Management Inc. increased its stake in Encompass Health by 1.3% in the second quarter. Securian Asset Management Inc. now owns 7,716 shares of the company’s stock valued at $946,000 after purchasing an additional 100 shares during the last quarter. State of Michigan Retirement System increased its stake in Encompass Health by 0.4% in the second quarter. State of Michigan Retirement System now owns 24,245 shares of the company’s stock valued at $2,973,000 after purchasing an additional 100 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its stake in Encompass Health by 19.0% in the first quarter. Caitong International Asset Management Co. Ltd now owns 720 shares of the company’s stock valued at $73,000 after purchasing an additional 115 shares during the last quarter. 97.25% of the stock is owned by institutional investors and hedge funds.

Encompass Health Price Performance

The company has a market capitalization of $12.78 billion, a price-to-earnings ratio of 24.83, a price-to-earnings-growth ratio of 2.18 and a beta of 0.92. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.76. The company has a 50 day simple moving average of $117.36 and a 200 day simple moving average of $112.58.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Monday, August 4th. The company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.20 by $0.20. The company had revenue of $1.46 billion during the quarter, compared to analyst estimates of $1.43 billion. Encompass Health had a return on equity of 17.83% and a net margin of 9.22%.The firm’s revenue was up 12.0% on a year-over-year basis. During the same period in the prior year, the firm posted $1.11 earnings per share. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. As a group, research analysts predict that Encompass Health Corporation will post 4.8 EPS for the current year.

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st will be given a $0.19 dividend. The ex-dividend date of this dividend is Wednesday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.17. This represents a $0.76 annualized dividend and a dividend yield of 0.6%. Encompass Health’s dividend payout ratio (DPR) is currently 13.31%.

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.