Royal Bank of Canada Issues Positive Forecast for Encompass Health (NYSE:EHC) Stock Price

Encompass Health (NYSE:EHC) had its price objective lifted by Royal Bank of Canada from $105.00 to $110.00 in a research report report published on Wednesday morning, Benzinga reports. Royal Bank of Canada currently has an outperform rating on the stock.

Several other brokerages also recently weighed in on EHC. Barclays upped their target price on shares of Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a research note on Tuesday. KeyCorp raised 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. Truist Financial reissued a “buy” rating and issued a $116.00 price target (up previously from $108.00) on shares of Encompass Health in a report on Wednesday. Leerink Partnrs upgraded Encompass Health to a “strong-buy” rating in a report on Wednesday, July 10th. Finally, Stephens reiterated an “overweight” rating and set a $105.00 target price on shares of Encompass Health in a research note on Tuesday, August 6th. Nine investment analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $107.11.

Encompass Health Stock Performance

Shares of NYSE:EHC opened at $101.35 on Wednesday. The firm has a market capitalization of $10.20 billion, a PE ratio of 24.48, a P/E/G ratio of 1.45 and a beta of 0.88. Encompass Health has a 12 month low of $61.08 and a 12 month high of $102.36. 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 business has a 50-day moving average of $94.14 and a two-hundred day moving average of $88.61.

Encompass Health (NYSE:EHC) last posted its earnings results on Monday, October 28th. The company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.09. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. During the same quarter in the previous year, the business posted $0.86 EPS. The business’s quarterly revenue was up 11.9% on a year-over-year basis. As a group, research analysts forecast that Encompass Health will post 4.18 earnings per share for the current year.

Encompass Health Dividend Announcement

The firm 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 $0.17 dividend. 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 0.67%. Encompass Health’s payout ratio is currently 16.43%.

Encompass Health announced that its board has authorized a stock repurchase program on Wednesday, July 24th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to buy up to 5.4% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the company’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 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 approximately $11,761,839.18. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Encompass Health

Several institutional investors have recently modified their holdings of EHC. UMB Bank n.a. boosted its stake in Encompass Health by 387.7% during the 3rd quarter. UMB Bank n.a. now owns 317 shares of the company’s stock valued at $31,000 after purchasing an additional 252 shares during the period. V Square Quantitative Management LLC grew its holdings in Encompass Health by 53.0% in the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock worth $39,000 after buying an additional 140 shares in the last quarter. Oakworth Capital Inc. acquired a new stake in Encompass Health in the 2nd quarter valued at approximately $40,000. Benjamin F. Edwards & Company Inc. raised its stake in Encompass Health by 58.9% during the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock valued at $46,000 after acquiring an additional 198 shares in the last quarter. Finally, Point72 Asia Singapore Pte. Ltd. acquired a new position in Encompass Health during the 2nd quarter worth $58,000. 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.