Encompass Health Co. (NYSE:EHC) Increases Dividend to $0.17 Per Share

Encompass Health Co. (NYSE:EHC) declared a quarterly dividend on Wednesday, July 24th, Zacks reports. Investors of record on Tuesday, October 1st will be paid a dividend of 0.17 per share on Tuesday, October 15th. This represents a $0.68 dividend on an annualized basis and a yield of 0.76%. The ex-dividend date of this dividend is Tuesday, October 1st. This is an increase from Encompass Health’s previous quarterly dividend of $0.15.

Encompass Health has decreased its dividend by an average of 18.8% annually over the last three years. Encompass Health has a payout ratio of 13.1% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Encompass Health to earn $4.55 per share next year, which means the company should continue to be able to cover its $0.60 annual dividend with an expected future payout ratio of 13.2%.

Encompass Health Price Performance

Shares of NYSE EHC opened at $88.92 on Thursday. The stock has a market cap of $8.95 billion, a P/E ratio of 24.03, a P/E/G ratio of 1.35 and a beta of 0.89. The firm’s 50-day simple moving average is $85.36 and its 200 day simple moving average is $79.90. Encompass Health has a fifty-two week low of $57.55 and a fifty-two week high of $89.80. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 1.14.

Encompass Health (NYSE:EHC) last issued its quarterly earnings results 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 net margin of 7.60% and a return on equity of 18.01%. The company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period in the prior year, the business posted $0.88 EPS. The business’s revenue for the quarter was up 13.4% compared to the same quarter last year. Equities analysts expect that Encompass Health will post 4.09 EPS for the current year.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, insider Elissa Joy Charbonneau sold 10,000 shares of Encompass Health stock in a transaction on Friday, May 24th. The shares were 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 owns 18,594 shares of the company’s stock, valued at approximately $1,580,861.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other news, insider Elissa Joy Charbonneau sold 10,000 shares of Encompass Health stock in a transaction dated 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 approximately $1,580,861.88. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Mark J. Tarr sold 44,976 shares of the firm’s stock in a transaction that occurred on Tuesday, April 30th. The shares were sold at an average price of $83.27, for a total transaction of $3,745,151.52. Following the transaction, the chief executive officer now directly owns 554,098 shares in the company, valued at approximately $46,139,740.46. The disclosure for this sale can be found here. In the last quarter, insiders have sold 69,519 shares of company stock worth $5,816,091. 2.10% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on EHC shares. SVB Leerink started coverage on shares of Encompass Health in a research report on Wednesday, July 10th. They issued an “outperform” rating and a $100.00 price target on the stock. Leerink Partnrs upgraded Encompass Health to a “strong-buy” rating in a report on Wednesday, July 10th. Mizuho raised their target price on shares of Encompass Health from $93.00 to $95.00 and gave the stock a “buy” rating in a report on Thursday, April 25th. Barclays boosted their price target on shares of Encompass Health from $108.00 to $113.00 and gave the company an “overweight” rating in a report on Wednesday, July 10th. Finally, Royal Bank of Canada raised their price objective on shares of Encompass Health from $83.00 to $95.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 22nd. Nine equities research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the company has an average rating of “Buy” and an average target price of $96.50.

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.