Encompass Health Co. (NYSE:EHC) Receives $100.38 Average Price Target from Analysts

Shares of Encompass Health Co. (NYSE:EHC) have received a consensus rating of “Buy” from the ten analysts that are currently covering the company, MarketBeat Ratings reports. Eight research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $102.88.

EHC has been the subject of several research analyst reports. Leerink Partners started coverage on Encompass Health in a research note on Wednesday, July 10th. They issued an “outperform” rating and a $100.00 price objective for the company. Barclays decreased their price target on shares of Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a report on Tuesday, August 6th. Leerink Partnrs upgraded shares of Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Royal Bank of Canada lifted their target price on shares of Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a research note on Thursday. Finally, Stephens reaffirmed an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a research note on Tuesday, August 6th.

Insider Transactions at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the firm’s stock in a transaction that occurred on Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value of $1,058,528.40. Following the transaction, the chief financial officer now directly owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Principal Securities Inc. bought a new position in shares of Encompass Health in the fourth quarter worth about $25,000. Parallel Advisors LLC grew its holdings in Encompass Health by 192.3% in the 4th quarter. Parallel Advisors LLC now owns 573 shares of the company’s stock valued at $38,000 after buying an additional 377 shares during the last quarter. Oakworth Capital Inc. bought a new position in Encompass Health in the 2nd quarter worth approximately $40,000. Benjamin F. Edwards & Company Inc. lifted 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 during the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of Encompass Health by 31.9% in the first quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock valued at $51,000 after acquiring an additional 149 shares during the period. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health Stock Up 0.4 %

EHC stock opened at $97.14 on Friday. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.35 and a quick ratio of 1.35. The firm has a market capitalization of $9.77 billion, a P/E ratio of 26.25, a P/E/G ratio of 1.41 and a beta of 0.88. Encompass Health has a 52-week low of $57.55 and a 52-week high of $97.56. The company’s 50 day simple moving average is $90.79 and its 200-day simple moving average is $85.78.

Encompass Health (NYSE:EHC) last announced its earnings results on Monday, August 5th. The company reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.10. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The company’s revenue was up 9.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.95 EPS. As a group, equities research analysts anticipate that Encompass Health will post 4.18 EPS for the current year.

Encompass Health Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Shareholders of record on Tuesday, October 1st will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 0.70%. This is an increase from Encompass Health’s previous quarterly dividend of $0.15. The ex-dividend date is Tuesday, October 1st. Encompass Health’s dividend payout ratio is presently 16.22%.

Encompass Health announced that its board has initiated a stock 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 stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its stock is undervalued.

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.