Encompass Health (NYSE:EHC) Hits New 52-Week High – What’s Next?

Encompass Health Co. (NYSE:EHC)’s share price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $103.26 and last traded at $103.03, with a volume of 2219 shares traded. The stock had previously closed at $101.34.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on EHC shares. KeyCorp upped their target price on Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. Royal Bank of Canada raised their price target on shares of Encompass Health from $105.00 to $110.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 30th. Truist Financial reissued a “buy” rating and issued a $116.00 price objective (up previously from $108.00) on shares of Encompass Health in a research report on Wednesday, October 30th. Leerink Partnrs raised shares of Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Finally, Leerink Partners began coverage on Encompass Health in a report on Wednesday, July 10th. They issued an “outperform” rating and a $100.00 price target for the company. Nine analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $107.11.

Encompass Health Stock Up 0.9 %

The firm has a 50-day simple moving average of $94.86 and a 200 day simple moving average of $89.25. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.04 and a quick ratio of 1.35. The company has a market capitalization of $10.29 billion, a PE ratio of 24.74, a price-to-earnings-growth ratio of 1.31 and a beta of 0.88.

Encompass Health (NYSE:EHC) last issued its quarterly earnings data on Monday, October 28th. The company reported $1.03 earnings per share (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 company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter last year, the company earned $0.86 earnings per share. Encompass Health’s revenue for the quarter was up 11.9% on a year-over-year basis. On average, research analysts predict that Encompass Health Co. will post 4.28 EPS for the current fiscal year.

Encompass Health Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be paid 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 yield of 0.66%. Encompass Health’s dividend payout ratio (DPR) is presently 16.43%.

Encompass Health announced that its board has authorized a share repurchase program on Wednesday, July 24th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to buy up to 5.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of the firm’s stock in a transaction 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 completion of the transaction, the chief financial officer now directly owns 136,227 shares of the company’s stock, valued at $11,761,839.18. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 2.10% of the company’s stock.

Institutional Trading of Encompass Health

Institutional investors and hedge funds have recently modified their holdings of the business. UMB Bank n.a. lifted 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 acquiring an additional 252 shares during the last quarter. V Square Quantitative Management LLC boosted its position in Encompass Health by 53.0% during 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. acquired a new stake in Encompass Health in the second quarter worth $40,000. Benjamin F. Edwards & Company Inc. lifted its position in Encompass Health by 58.9% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock worth $46,000 after purchasing an additional 198 shares during the period. Finally, Point72 Asia Singapore Pte. Ltd. bought a new stake in shares of Encompass Health in the 2nd quarter worth $58,000. 97.25% of the stock is owned by institutional investors and hedge funds.

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.