FY2024 EPS Estimate for Encompass Health Lifted by Analyst

Encompass Health Co. (NYSE:EHC) – Stock analysts at William Blair lifted their FY2024 earnings per share (EPS) estimates for shares of Encompass Health in a research note issued to investors on Tuesday, October 29th. William Blair analyst J. Haase now expects that the company will post earnings per share of $4.24 for the year, up from their prior estimate of $4.10. The consensus estimate for Encompass Health’s current full-year earnings is $4.18 per share. William Blair also issued estimates for Encompass Health’s Q4 2025 earnings at $1.09 EPS and FY2025 earnings at $4.87 EPS.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Monday, October 28th. The company reported $1.03 EPS for the quarter, beating analysts’ consensus estimates of $0.94 by $0.09. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The business’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same period last year, the company earned $0.86 EPS.

A number of other research firms also recently weighed in on EHC. Barclays increased 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. Leerink Partnrs raised Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. KeyCorp increased their price target on Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research note on Tuesday. Truist Financial reissued a “buy” rating and issued a $116.00 price target (up previously from $108.00) on shares of Encompass Health in a research note on Wednesday. Finally, Leerink Partners started coverage on Encompass Health in a research note on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective on the stock. Nine research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $107.11.

Encompass Health Stock Performance

EHC stock opened at $101.35 on Wednesday. The business’s fifty day moving average is $94.14 and its 200-day moving average is $88.61. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.08. The company has a market cap of $10.20 billion, a P/E ratio of 24.48, a price-to-earnings-growth ratio of 1.45 and a beta of 0.88. Encompass Health has a twelve month low of $61.08 and a twelve month high of $102.36.

Encompass Health declared that its board has approved a share repurchase program on Wednesday, July 24th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.

Encompass Health Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 0.67%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s dividend payout ratio (DPR) is presently 16.43%.

Insiders Place Their Bets

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of the stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the completion of the transaction, the chief financial officer now owns 136,227 shares in the company, valued at approximately $11,761,839.18. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

A number of large investors have recently added to or reduced their stakes in the company. Magnetar Financial LLC grew its holdings in shares of Encompass Health by 1,176.6% in the 2nd quarter. Magnetar Financial LLC now owns 744,836 shares of the company’s stock valued at $63,899,000 after acquiring an additional 814,018 shares in the last quarter. Thrivent Financial for Lutherans grew its holdings in shares of Encompass Health by 2,302.7% in the 2nd quarter. Thrivent Financial for Lutherans now owns 603,558 shares of the company’s stock valued at $51,780,000 after acquiring an additional 578,438 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Encompass Health by 614.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 540,519 shares of the company’s stock valued at $44,637,000 after acquiring an additional 464,897 shares in the last quarter. Scout Investments Inc. bought a new position in shares of Encompass Health in the 1st quarter valued at about $29,356,000. Finally, TD Asset Management Inc grew its holdings in shares of Encompass Health by 16.0% in the 1st quarter. TD Asset Management Inc now owns 2,283,674 shares of the company’s stock valued at $188,586,000 after acquiring an additional 314,488 shares in the last quarter. 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.