Encompass Health (NYSE:EHC) Sets New 52-Week High – Still a Buy?

Encompass Health Corporation (NYSE:EHC)’s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $127.78 and last traded at $127.53, with a volume of 31189 shares traded. The stock had previously closed at $126.04.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on EHC shares. Wall Street Zen lowered shares of Encompass Health from a “strong-buy” rating to a “buy” rating in a research note on Friday, June 6th. UBS Group lifted their target price on shares of Encompass Health from $130.00 to $140.00 and gave the company a “buy” rating in a research report on Wednesday, August 6th. Bank of America increased their target price on Encompass Health from $145.00 to $160.00 and gave the stock a “buy” rating in a report on Wednesday, September 10th. Truist Financial boosted their price target on shares of Encompass Health from $135.00 to $140.00 and gave the company a “buy” rating in a research report on Thursday, August 14th. Finally, KeyCorp increased their price objective on shares of Encompass Health from $135.00 to $140.00 and gave the stock an “overweight” rating in a report on Tuesday, September 16th. One investment analyst has rated the stock with a Strong Buy rating and seven have assigned a Buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $138.43.

Encompass Health Price Performance

The business has a fifty day moving average of $118.25 and a two-hundred day moving average of $113.99. The firm has a market capitalization of $12.77 billion, a price-to-earnings ratio of 24.81, a price-to-earnings-growth ratio of 2.17 and a beta of 0.92. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.06 and a current ratio of 1.06.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Monday, August 4th. The company reported $1.40 EPS for the quarter, beating the consensus estimate of $1.20 by $0.20. The firm had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.43 billion. Encompass Health had a net margin of 9.22% and a return on equity of 17.83%. The company’s quarterly revenue was up 12.0% on a year-over-year basis. During the same period in the previous year, the company earned $1.11 earnings per share. Encompass Health has set its FY 2025 guidance at 5.120-5.340 EPS. As a group, research analysts predict that Encompass Health Corporation will post 4.8 EPS for the current fiscal year.

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Wednesday, October 1st will be given a $0.19 dividend. The ex-dividend date of this dividend is Wednesday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.17. This represents a $0.76 annualized dividend and a dividend yield of 0.6%. Encompass Health’s dividend payout ratio (DPR) is currently 13.31%.

Insider Buying and Selling at Encompass Health

In other news, EVP Patrick William Tuer sold 1,020 shares of the company’s stock in a transaction on Wednesday, August 27th. The stock was sold at an average price of $123.59, for a total transaction of $126,061.80. Following the completion of the sale, the executive vice president directly owned 18,846 shares in the company, valued at approximately $2,329,177.14. This represents a 5.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

Several hedge funds and other institutional investors have recently made changes to their positions in EHC. Osaic Holdings Inc. raised its position in shares of Encompass Health by 7.2% in the 2nd quarter. Osaic Holdings Inc. now owns 13,721 shares of the company’s stock worth $1,682,000 after acquiring an additional 919 shares in the last quarter. Newbridge Financial Services Group Inc. lifted its holdings in shares of Encompass Health by 112.5% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 425 shares of the company’s stock worth $52,000 after purchasing an additional 225 shares in the last quarter. FORA Capital LLC bought a new stake in shares of Encompass Health during the second quarter worth about $1,640,000. Evergreen Capital Management LLC purchased a new stake in shares of Encompass Health in the second quarter worth approximately $239,000. Finally, Headlands Technologies LLC lifted its stake in Encompass Health by 5,474.1% during the 2nd quarter. Headlands Technologies LLC now owns 1,505 shares of the company’s stock valued at $185,000 after acquiring an additional 1,478 shares in the last quarter. 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.