Encompass Health (NYSE:EHC) Downgraded to “Buy” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Encompass Health (NYSE:EHC) from a strong-buy rating to a buy rating in a research note issued to investors on Friday morning.

EHC has been the topic of several other research reports. Barclays increased their price target on shares of Encompass Health from $118.00 to $129.00 and gave the stock an “overweight” rating in a research note on Friday, April 25th. Truist Financial restated a “buy” rating and set a $135.00 price target (up previously from $116.00) on shares of Encompass Health in a research note on Monday, April 28th. UBS Group increased their price target on shares of Encompass Health from $117.00 to $130.00 and gave the stock a “buy” rating in a research note on Monday, April 28th. Royal Bank of Canada increased their price target on shares of Encompass Health from $110.00 to $125.00 and gave the stock an “outperform” rating in a research note on Monday, April 28th. Finally, Stephens restated an “overweight” rating and set a $135.00 price target on shares of Encompass Health in a research note on Thursday. Nine research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $127.00.

Encompass Health Stock Up 0.2%

EHC stock opened at $121.57 on Friday. Encompass Health has a 12-month low of $82.74 and a 12-month high of $123.13. The company has a quick ratio of 1.04, a current ratio of 1.05 and a debt-to-equity ratio of 0.84. The company has a market cap of $12.25 billion, a price-to-earnings ratio of 27.26, a PEG ratio of 2.31 and a beta of 0.89. The company has a 50 day moving average of $111.96 and a two-hundred day moving average of $102.74.

Encompass Health (NYSE:EHC) last released its earnings results on Thursday, April 24th. The company reported $1.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.19 by $0.18. Encompass Health had a net margin of 8.48% and a return on equity of 17.56%. The company had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.43 billion. During the same quarter in the prior year, the firm earned $1.12 EPS. The company’s revenue was up 10.6% compared to the same quarter last year. On average, equities analysts anticipate that Encompass Health will post 4.8 earnings per share for the current fiscal 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 paid a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, July 1st. This represents a $0.68 dividend on an annualized basis and a yield of 0.56%. Encompass Health’s payout ratio is presently 14.05%.

Insider Activity at Encompass Health

In related news, insider Elissa Joy Charbonneau sold 4,279 shares of the firm’s stock in a transaction on Tuesday, May 6th. The shares were sold at an average price of $116.61, for a total value of $498,974.19. Following the transaction, the insider now directly owns 11,958 shares in the company, valued at approximately $1,394,422.38. This trade represents a 26.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Mark J. Tarr sold 118,384 shares of the stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $121.53, for a total transaction of $14,387,207.52. Following the completion of the sale, the chief executive officer now directly owns 527,070 shares of the company’s stock, valued at approximately $64,054,817.10. This trade represents a 18.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 132,663 shares of company stock worth $16,034,082. 2.10% of the stock is owned by insiders.

Institutional Trading of Encompass Health

A number of hedge funds have recently bought and sold shares of EHC. WPG Advisers LLC bought a new stake in Encompass Health in the 1st quarter valued at $27,000. Colonial Trust Co SC bought a new stake in Encompass Health in the 4th quarter valued at $29,000. Transce3nd LLC bought a new stake in Encompass Health in the 4th quarter valued at $40,000. CBIZ Investment Advisory Services LLC boosted its holdings in Encompass Health by 38.7% in the 4th 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 period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in Encompass Health by 749.0% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 416 shares of the company’s stock valued at $42,000 after purchasing an additional 367 shares during the period. 97.25% of the stock is owned by institutional investors.

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.