Encompass Health (NYSE:EHC) Hits New 12-Month High After Earnings Beat

Encompass Health Co. (NYSE:EHC)’s stock price hit a new 52-week high during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $102.36 and last traded at $99.93, with a volume of 41616 shares traded. The stock had previously closed at $93.09.

The company reported $1.03 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.09. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. Encompass Health’s revenue was up 11.9% compared to the same quarter last year. During the same period last year, the business posted $0.86 EPS.

Encompass Health Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Thursday, January 2nd will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 0.68%. The ex-dividend date of this dividend is Thursday, January 2nd. Encompass Health’s dividend payout ratio (DPR) is currently 16.43%.

Encompass Health declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, July 24th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 5.4% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on EHC shares. Royal Bank of Canada upped their target price on Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a research note on Thursday, September 26th. Stephens reaffirmed an “overweight” rating and set a $105.00 price target on shares of Encompass Health in a report on Tuesday, August 6th. Leerink Partnrs raised shares of Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Barclays upped their price target on Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a research note on Tuesday. Finally, UBS Group raised their price objective on shares of Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research note on Wednesday, September 25th. Nine equities research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $105.67.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value of $1,058,528.40. Following the sale, the chief financial officer now owns 136,227 shares of the company’s stock, valued at $11,761,839.18. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 2.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in shares of Encompass Health by 1.7% during the 1st quarter. Vanguard Group Inc. now owns 10,166,147 shares of the company’s stock worth $839,520,000 after purchasing an additional 169,113 shares in the last quarter. TD Asset Management Inc lifted its stake in shares of Encompass Health by 16.0% during the 1st quarter. TD Asset Management Inc now owns 2,283,674 shares of the company’s stock worth $188,586,000 after buying an additional 314,488 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Encompass Health by 1.2% during the second quarter. Dimensional Fund Advisors LP now owns 1,819,345 shares of the company’s stock worth $156,083,000 after acquiring an additional 22,311 shares during the period. Epoch Investment Partners Inc. grew its stake in shares of Encompass Health by 14.2% in the first quarter. Epoch Investment Partners Inc. now owns 1,598,042 shares of the company’s stock valued at $131,966,000 after acquiring an additional 198,701 shares in the last quarter. Finally, 8 Knots Management LLC increased its holdings in shares of Encompass Health by 14.0% during the first quarter. 8 Knots Management LLC now owns 1,288,815 shares of the company’s stock worth $106,430,000 after purchasing an additional 158,356 shares during the period. Institutional investors own 97.25% of the company’s stock.

Encompass Health Stock Performance

The stock has a market cap of $10.06 billion, a P/E ratio of 24.14, a price-to-earnings-growth ratio of 1.45 and a beta of 0.88. The stock has a 50 day simple moving average of $93.90 and a 200 day simple moving average of $88.52. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08.

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.