Encompass Health (NYSE:EHC) Shares Gap Up Following Dividend Announcement

Encompass Health Corporation (NYSE:EHC)’s stock price gapped up prior to trading on Friday after the company announced a dividend. The stock had previously closed at $111.06, but opened at $115.00. Encompass Health shares last traded at $115.2860, with a volume of 61,176 shares traded.

The newly announced dividend which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be given a dividend of $0.21 per share. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 annualized dividend and a yield of 0.7%. Encompass Health’s payout ratio is currently 12.69%.

Analysts Set New Price Targets

Several brokerages have issued reports on EHC. Leerink Partners set a $152.00 target price on shares of Encompass Health in a report on Friday, May 22nd. Weiss Ratings downgraded shares of Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Barclays lowered their price objective on Encompass Health from $153.00 to $140.00 and set an “overweight” rating on the stock in a research report on Tuesday, May 5th. Finally, TD Cowen started coverage on Encompass Health in a research note on Thursday, May 28th. They set a “buy” rating and a $125.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Encompass Health presently has a consensus rating of “Moderate Buy” and a consensus target price of $143.86.

Encompass Health Stock Performance

The firm has a market cap of $11.18 billion, a P/E ratio of 18.81, a P/E/G ratio of 2.42 and a beta of 0.74. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17. The business’s 50-day simple moving average is $104.97 and its 200 day simple moving average is $103.80.

Encompass Health (NYSE:EHC) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.51 by $0.09. The firm had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The company’s revenue for the quarter was up 9.0% on a year-over-year basis. During the same period last year, the business posted $1.37 EPS. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, equities analysts predict that Encompass Health Corporation will post 5.96 earnings per share for the current year.

Insider Buying and Selling at Encompass Health

In related news, EVP Patrick William Tuer sold 682 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $104.56, for a total value of $71,309.92. Following the transaction, the executive vice president owned 24,755 shares of the company’s stock, valued at approximately $2,588,382.80. This trade represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 1.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of EHC. Northwestern Mutual Wealth Management Co. increased its stake in shares of Encompass Health by 3,059,159.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after purchasing an additional 3,793,358 shares in the last quarter. Norges Bank purchased a new position in Encompass Health during the fourth quarter valued at $133,221,000. Price T Rowe Associates Inc. MD grew its holdings in Encompass Health by 24.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock valued at $510,047,000 after purchasing an additional 948,202 shares during the period. Millennium Management LLC lifted its position in shares of Encompass Health by 140.0% during the 3rd quarter. Millennium Management LLC now owns 1,223,665 shares of the company’s stock valued at $155,430,000 after buying an additional 713,738 shares in the last quarter. Finally, 8 Knots Management LLC purchased a new stake in Encompass Health in the 2nd quarter worth approximately $78,644,000. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.