Zacks Investment Research Downgrades Encompass Health (EHC) to Sell

Zacks Investment Research lowered shares of Encompass Health (AMEX:EHC) from a hold rating to a sell rating in a report issued on Tuesday morning.

According to Zacks, “Encompass Health Corporation provides inpatient rehabilitation hospitals and home-based care services. It offers facility-based and home-based patient care through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. Encompass Health Corporation, formerly known as HealthSouth Corporation, is headquartered in Birmingham, Alabama. “

Other equities analysts also recently issued reports about the company. Mizuho restated a buy rating and issued a $82.00 target price on shares of Encompass Health in a research note on Thursday, July 26th. Piper Jaffray Companies raised Encompass Health from a neutral rating to an overweight rating in a report on Thursday, July 26th. Credit Suisse Group lifted their price target on Encompass Health from $66.00 to $80.00 and gave the company an outperform rating in a report on Thursday, July 26th. Finally, SunTrust Banks reaffirmed a buy rating and set a $82.00 price target on shares of Encompass Health in a report on Friday, July 20th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and nine have assigned a buy rating to the stock. Encompass Health presently has an average rating of Buy and an average target price of $71.10.

AMEX:EHC opened at $57.67 on Tuesday. Encompass Health has a one year low of $40.86 and a one year high of $59.29. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.89.

Encompass Health (AMEX:EHC) last issued its earnings results on Wednesday, July 25th. The company reported $0.99 EPS for the quarter, beating the Zacks’ consensus estimate of $0.83 by $0.16. Encompass Health had a return on equity of 23.56% and a net margin of 8.67%. The company had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.03 billion. The firm’s revenue was up 10.5% on a year-over-year basis. On average, research analysts predict that Encompass Health will post 2.72 EPS for the current year.

The firm also recently declared a quarterly dividend, which was paid on Monday, October 15th. Shareholders of record on Monday, October 1st were given a $0.27 dividend. This is a positive change from Encompass Health’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Friday, September 28th. This represents a $1.08 annualized dividend and a yield of 1.87%.

In other Encompass Health news, insider Cheryl B. Levy sold 28,955 shares of Encompass Health stock in a transaction that occurred on Friday, August 3rd. The shares were sold at an average price of $78.00, for a total transaction of $2,258,490.00. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Andrew L. Price sold 9,457 shares of Encompass Health stock in a transaction that occurred on Tuesday, August 14th. The stock was sold at an average price of $80.04, for a total transaction of $756,938.28. The disclosure for this sale can be found here. Insiders own 1.60% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of EHC. Dimensional Fund Advisors LP purchased a new position in Encompass Health during the 1st quarter worth approximately $66,050,000. Stifel Financial Corp purchased a new position in Encompass Health during the 1st quarter worth approximately $1,267,000. OppenheimerFunds Inc. purchased a new position in Encompass Health during the 1st quarter worth approximately $1,150,000. Koch Industries Inc. purchased a new position in Encompass Health during the 1st quarter worth approximately $247,000. Finally, Northwestern Mutual Investment Management Company LLC purchased a new position in Encompass Health during the 1st quarter worth approximately $1,148,000. Hedge funds and other institutional investors own 93.18% of the company’s stock.

Encompass Health Company Profile

Encompass Health Corporation, formerly HealthSouth Corporation, is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in 35 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies.

Recommended Story: Dow Jones Industrial Average (DJIA)

Get a free copy of the Zacks research report on Encompass Health (EHC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Encompass Health (AMEX:EHC)

Receive News & Ratings for Encompass Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encompass Health and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply