Encompass Health (NYSE:EHC) Earns Buy Rating from Truist Financial

Truist Financial reaffirmed their buy rating on shares of Encompass Health (NYSE:EHC) in a research note published on Wednesday, Benzinga reports. The firm currently has a $116.00 price target on the stock, up from their previous price target of $108.00.

Other equities research analysts have also recently issued reports about the stock. Leerink Partnrs raised shares of Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Royal Bank of Canada increased their price objective on shares of Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a research note on Thursday, September 26th. UBS Group raised their price target on shares of Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Wednesday, September 25th. KeyCorp raised their price target on shares of Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 29th. Finally, Barclays increased their price objective on shares of Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a report on Tuesday, October 29th. Nine equities research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $107.11.

Encompass Health Stock Performance

NYSE:EHC opened at $98.91 on Wednesday. The company has a quick ratio of 1.35, a current ratio of 1.04 and a debt-to-equity ratio of 0.88. Encompass Health has a fifty-two week low of $62.58 and a fifty-two week high of $102.36. The stock has a market cap of $9.95 billion, a PE ratio of 23.89, a price-to-earnings-growth ratio of 1.32 and a beta of 0.88. The firm’s fifty day simple moving average is $94.47 and its 200-day simple moving average is $88.88.

Encompass Health (NYSE:EHC) last posted its quarterly earnings results on Monday, October 28th. The company reported $1.03 earnings per share for the quarter, topping analysts’ consensus estimates 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 company posted $0.86 EPS. The business’s revenue for the quarter was up 11.9% on a year-over-year basis. Analysts expect that Encompass Health will post 4.28 earnings per share for the current fiscal year.

Encompass Health Announces Dividend

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

Encompass Health announced that its board has initiated a share 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 reacquire up to 5.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction that occurred on Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total transaction 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 trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 2.10% of the company’s stock.

Institutional Trading of Encompass Health

A number of hedge funds have recently made changes to their positions in EHC. UMB Bank n.a. boosted its holdings in Encompass Health by 387.7% in the third quarter. UMB Bank n.a. now owns 317 shares of the company’s stock worth $31,000 after purchasing an additional 252 shares during the period. V Square Quantitative Management LLC boosted its holdings in Encompass Health by 53.0% in the third quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock worth $39,000 after purchasing an additional 140 shares during the period. Oakworth Capital Inc. bought a new stake in Encompass Health in the second quarter valued at $40,000. Benjamin F. Edwards & Company Inc. lifted its stake in Encompass Health by 58.9% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock valued at $46,000 after buying an additional 198 shares during the last quarter. Finally, Point72 Asia Singapore Pte. Ltd. bought a new stake in Encompass Health in the second quarter valued at $58,000. Institutional investors and hedge funds 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.