Encompass Health Co. (NYSE:EHC) Short Interest Up 8.5% in May

Encompass Health Co. (NYSE:EHC) was the recipient of a significant increase in short interest in the month of May. As of May 31st, there was short interest totalling 1,790,000 shares, an increase of 8.5% from the May 15th total of 1,650,000 shares. Based on an average daily trading volume, of 644,500 shares, the days-to-cover ratio is currently 2.8 days. Currently, 1.8% of the company’s shares are sold short.

Insider Transactions at Encompass Health

In other news, insider Elissa Joy Charbonneau sold 10,000 shares of Encompass Health stock in a transaction on Friday, May 24th. The stock was sold at an average price of $85.02, for a total transaction of $850,200.00. Following the completion of the sale, the insider now directly owns 18,594 shares in the company, valued at $1,580,861.88. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. In other Encompass Health news, insider Elissa Joy Charbonneau sold 10,000 shares of the company’s stock in a transaction dated Friday, May 24th. The shares were sold at an average price of $85.02, for a total value of $850,200.00. Following the transaction, the insider now directly owns 18,594 shares in the company, valued at approximately $1,580,861.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Greg D. Carmichael purchased 2,000 shares of the firm’s stock in a transaction dated Friday, May 3rd. The shares were bought at an average cost of $83.73 per share, with a total value of $167,460.00. Following the purchase, the director now directly owns 17,050 shares of the company’s stock, valued at approximately $1,427,596.50. The disclosure for this purchase can be found here. Over the last three months, insiders have sold 69,519 shares of company stock worth $5,816,091. 2.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Encompass Health

Institutional investors and hedge funds have recently made changes to their positions in the stock. Principal Securities Inc. acquired a new stake in shares of Encompass Health during the fourth quarter worth about $25,000. Benjamin F. Edwards & Company Inc. grew its holdings in Encompass Health by 360.2% during the fourth quarter. Benjamin F. Edwards & Company Inc. now owns 405 shares of the company’s stock worth $27,000 after acquiring an additional 317 shares during the period. McGlone Suttner Wealth Management Inc. purchased a new position in Encompass Health during the fourth quarter valued at approximately $30,000. GAMMA Investing LLC acquired a new position in Encompass Health in the fourth quarter valued at approximately $33,000. Finally, C M Bidwell & Associates Ltd. purchased a new stake in Encompass Health in the 3rd quarter worth approximately $35,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have recently issued reports on EHC. Royal Bank of Canada increased their price target on Encompass Health from $83.00 to $95.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 22nd. Barclays raised their target price on shares of Encompass Health from $101.00 to $108.00 and gave the company an “overweight” rating in a research report on Thursday, April 25th. Stephens reaffirmed an “overweight” rating and issued a $94.00 price target on shares of Encompass Health in a research report on Wednesday, June 5th. Mizuho lifted their price objective on shares of Encompass Health from $93.00 to $95.00 and gave the company a “buy” rating in a report on Thursday, April 25th. Finally, Raymond James reaffirmed a “strong-buy” rating and set a $95.00 target price (up previously from $85.00) on shares of Encompass Health in a research report on Friday, April 26th. Eight equities research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $93.29.

Encompass Health Price Performance

NYSE EHC opened at $85.36 on Wednesday. The firm’s fifty day simple moving average is $83.92 and its two-hundred day simple moving average is $76.36. The firm has a market capitalization of $8.59 billion, a P/E ratio of 23.07, a P/E/G ratio of 1.31 and a beta of 0.90. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.14. Encompass Health has a 12-month low of $57.55 and a 12-month high of $87.94.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data on Wednesday, April 24th. The company reported $1.12 earnings per share for the quarter, topping analysts’ consensus estimates of $0.93 by $0.19. Encompass Health had a return on equity of 18.01% and a net margin of 7.60%. The firm had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter last year, the firm earned $0.88 EPS. The business’s quarterly revenue was up 13.4% on a year-over-year basis. Analysts forecast that Encompass Health will post 4.1 EPS for the current fiscal year.

Encompass Health Dividend Announcement

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

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.