Encompass Health Co. (NYSE:EHC) Given Consensus Rating of “Buy” by Brokerages

Encompass Health Co. (NYSE:EHC) has received an average rating of “Buy” from the eleven brokerages that are covering the firm, MarketBeat.com reports. Nine equities research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $107.11.

A number of equities research analysts have recently weighed in on the company. Truist Financial restated a “buy” rating and set a $116.00 target price (up previously from $108.00) on shares of Encompass Health in a research report on Wednesday, October 30th. UBS Group upped their target price on shares of Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research report on Wednesday, September 25th. KeyCorp raised their target price on shares of Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. Barclays boosted their price target on shares of Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 29th. Finally, Royal Bank of Canada raised their price objective on shares of Encompass Health from $105.00 to $110.00 and gave the company an “outperform” rating in a research note on Wednesday, October 30th.

Encompass Health Stock Performance

Encompass Health stock opened at $98.84 on Monday. Encompass Health has a 12-month low of $63.59 and a 12-month high of $104.55. The stock has a 50-day simple moving average of $96.38 and a 200 day simple moving average of $90.25. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.88. The stock has a market capitalization of $9.96 billion, a price-to-earnings ratio of 23.87, a P/E/G ratio of 1.36 and a beta of 0.88.

Encompass Health (NYSE:EHC) last released its quarterly earnings results on Monday, October 28th. The company reported $1.03 EPS for the quarter, beating the consensus estimate of $0.94 by $0.09. Encompass Health had a net margin of 8.10% and a return on equity of 17.60%. The business had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.33 billion. During the same period in the prior year, the firm earned $0.86 earnings per share. Encompass Health’s revenue was up 11.9% compared to the same quarter last year. On average, research analysts anticipate that Encompass Health will post 4.29 earnings per share for the current fiscal year.

Encompass Health announced that its board has approved a share buyback program on Wednesday, July 24th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Encompass Health Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Thursday, January 2nd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.69%. Encompass Health’s dividend payout ratio is 16.43%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. UMB Bank n.a. raised its holdings in shares of Encompass Health by 387.7% during the third quarter. UMB Bank n.a. now owns 317 shares of the company’s stock worth $31,000 after acquiring an additional 252 shares during the period. V Square Quantitative Management LLC raised its stake in shares of Encompass Health by 53.0% in the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock valued at $39,000 after purchasing an additional 140 shares during the period. Oakworth Capital Inc. bought a new stake in shares of Encompass Health in the second quarter valued at about $40,000. Avior Wealth Management LLC acquired a new position in shares of Encompass Health during the third quarter worth about $40,000. Finally, Benjamin F. Edwards & Company Inc. grew its holdings in shares of Encompass Health by 58.9% during the second quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock worth $46,000 after buying an additional 198 shares in the last quarter. Institutional investors own 97.25% of the company’s stock.

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.