Encompass Health (NYSE:EHC) Receives New Coverage from Analysts at KeyCorp

KeyCorp started coverage on shares of Encompass Health (NYSE:EHC) in a research report released on Friday, MarketBeat.com reports. The firm issued an overweight rating and a $115.00 price target on the stock. KeyCorp also issued estimates for Encompass Health’s FY2024 earnings at $4.18 EPS, FY2025 earnings at $4.71 EPS and FY2026 earnings at $5.30 EPS.

Other equities research analysts have also issued research reports about the company. Royal Bank of Canada increased their price target on Encompass Health from $95.00 to $105.00 and gave the stock an outperform rating in a research note on Thursday, September 26th. Stephens reissued an overweight rating and issued a $105.00 price target on shares of Encompass Health in a report on Tuesday, August 6th. Truist Financial lifted their price objective on shares of Encompass Health from $100.00 to $104.00 and gave the company a buy rating in a research report on Thursday, August 15th. Leerink Partners began coverage on shares of Encompass Health in a research report on Wednesday, July 10th. They set an outperform rating and a $100.00 price objective on the stock. Finally, Barclays reduced their price objective on shares of Encompass Health from $113.00 to $109.00 and set an overweight rating on the stock in a research report on Tuesday, August 6th. Eight investment analysts have rated the stock with a buy rating and three have assigned a strong buy rating to the company. Based on data from MarketBeat.com, Encompass Health presently has a consensus rating of Buy and an average price target of $104.67.

Encompass Health Stock Up 0.3 %

Shares of Encompass Health stock opened at $96.26 on Friday. The company has a market cap of $9.69 billion, a price-to-earnings ratio of 26.02, a price-to-earnings-growth ratio of 1.43 and a beta of 0.88. The company’s 50 day moving average is $91.95 and its 200 day moving average is $87.44. Encompass Health has a twelve month low of $57.55 and a twelve month high of $97.56. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.08.

Encompass Health (NYSE:EHC) last released its quarterly earnings results on Monday, August 5th. The company reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.10. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The business had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same period last year, the firm earned $0.95 earnings per share. The company’s quarterly revenue was up 9.6% on a year-over-year basis. Research analysts anticipate that Encompass Health will post 4.18 EPS for the current year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st will be issued a dividend of $0.17 per share. The ex-dividend date of this dividend is Tuesday, October 1st. This represents a $0.68 annualized dividend and a dividend yield of 0.71%. This is an increase from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s dividend payout ratio is 18.38%.

Encompass Health announced that its Board of Directors has approved a share buyback plan on Wednesday, July 24th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the company to buy up to 5.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the company’s stock in a transaction that occurred on 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 in the company, valued at $11,761,839.18. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Encompass Health

Hedge funds have recently bought and sold shares of the stock. American Trust raised its stake in shares of Encompass Health by 101.9% during the 4th quarter. American Trust now owns 7,408 shares of the company’s stock worth $494,000 after buying an additional 3,738 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Encompass Health by 379.7% during the 4th quarter. Goldman Sachs Group Inc. now owns 578,349 shares of the company’s stock worth $38,587,000 after buying an additional 457,796 shares during the period. Wellington Management Group LLP raised its stake in shares of Encompass Health by 5.8% during the 4th quarter. Wellington Management Group LLP now owns 8,215,770 shares of the company’s stock worth $548,156,000 after buying an additional 449,230 shares during the period. Vanguard Group Inc. raised its stake in shares of Encompass Health by 4.7% during the 4th quarter. Vanguard Group Inc. now owns 9,997,034 shares of the company’s stock worth $667,002,000 after buying an additional 450,081 shares during the period. Finally, Reinhart Partners LLC. raised its stake in Encompass Health by 0.6% in the 1st quarter. Reinhart Partners LLC. now owns 736,804 shares of the company’s stock valued at $60,845,000 after purchasing an additional 4,409 shares during the last quarter. Hedge funds and other institutional investors own 97.25% of the company’s stock.

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.