Encompass Health (NYSE:EHC) Reaches New 12-Month High – Should You Buy?

Encompass Health Co. (NYSE:EHC)’s stock price reached a new 52-week high during trading on Tuesday . The stock traded as high as $121.44 and last traded at $121.15, with a volume of 543136 shares changing hands. The stock had previously closed at $120.87.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Barclays upped their target price on shares of Encompass Health from $118.00 to $129.00 and gave the company an “overweight” rating in a research note on Friday, April 25th. William Blair reiterated an “outperform” rating on shares of Encompass Health in a research note on Friday, February 7th. StockNews.com upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, May 11th. Truist Financial reiterated a “buy” rating and set a $135.00 target price (up from $116.00) on shares of Encompass Health in a research note on Monday, April 28th. Finally, Royal Bank of Canada increased their price objective on shares of Encompass Health from $110.00 to $125.00 and gave the company an “outperform” rating in a research note on Monday, April 28th. Nine investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $120.86.

Encompass Health Trading Up 0.2%

The company has a market cap of $12.21 billion, a price-to-earnings ratio of 27.16, a PEG ratio of 2.31 and a beta of 0.91. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.04 and a current ratio of 1.05. The business’s 50 day moving average price is $105.97 and its 200-day moving average price is $100.90.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Thursday, April 24th. The company reported $1.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.19 by $0.18. The company had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.43 billion. Encompass Health had a net margin of 8.48% and a return on equity of 17.56%. The business’s revenue was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.12 EPS. On average, research analysts forecast that Encompass Health Co. will post 4.8 EPS for the current year.

Encompass Health Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.56%. The ex-dividend date of this dividend is Tuesday, July 1st. Encompass Health’s dividend payout ratio (DPR) is currently 14.05%.

Insider Buying and Selling

In related news, insider Elissa Joy Charbonneau sold 4,279 shares of the stock in a transaction dated Tuesday, May 6th. The shares were sold at an average price of $116.61, for a total transaction of $498,974.19. Following the completion of the sale, the insider now owns 11,958 shares in the company, valued at $1,394,422.38. This trade represents a 26.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP John Patrick Darby sold 10,000 shares of the stock in a transaction dated Tuesday, April 29th. The stock was sold at an average price of $114.79, for a total transaction of $1,147,900.00. Following the sale, the executive vice president now owns 79,710 shares of the company’s stock, valued at $9,149,910.90. This trade represents a 11.15% decrease in their position. The disclosure for this sale can be found here. 2.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Encompass Health

A number of hedge funds have recently made changes to their positions in EHC. MassMutual Private Wealth & Trust FSB lifted its position in shares of Encompass Health by 87.8% during the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 293 shares of the company’s stock worth $27,000 after purchasing an additional 137 shares in the last quarter. WPG Advisers LLC bought a new stake in shares of Encompass Health during the first quarter valued at approximately $27,000. Colonial Trust Co SC bought a new stake in shares of Encompass Health during the fourth quarter valued at approximately $29,000. Transce3nd LLC bought a new stake in shares of Encompass Health during the fourth quarter valued at approximately $40,000. Finally, CBIZ Investment Advisory Services LLC grew its stake in shares of Encompass Health by 38.7% during the fourth quarter. CBIZ Investment Advisory Services LLC now owns 455 shares of the company’s stock valued at $42,000 after purchasing an additional 127 shares during the last quarter. 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.