Encompass Health (NYSE:EHC) Trading 4.4% Higher – Here’s What Happened

Encompass Health Corporation (NYSE:EHC)’s share price was up 4.4% during mid-day trading on Friday . The stock traded as high as $104.78 and last traded at $104.2150. Approximately 290,254 shares changed hands during trading, a decline of 73% from the average daily volume of 1,087,874 shares. The stock had previously closed at $99.84.

Wall Street Analyst Weigh In

A number of research firms recently commented on EHC. Barclays dropped their price objective on Encompass Health from $153.00 to $140.00 and set an “overweight” rating on the stock in a report on Tuesday, May 5th. TD Cowen initiated coverage on shares of Encompass Health in a research report on Thursday, May 28th. They issued a “buy” rating and a $125.00 target price for the company. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. Finally, Leerink Partners set a $152.00 price target on shares of Encompass Health in a report on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus target price of $143.86.

Encompass Health Stock Performance

The firm has a 50 day moving average price of $103.68 and a 200-day moving average price of $105.01. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.17 and a current ratio of 1.17. The company has a market cap of $10.36 billion, a P/E ratio of 17.43, a P/E/G ratio of 2.25 and a beta of 0.72.

Encompass Health (NYSE:EHC) last posted its earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.09. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The firm had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period in the previous year, the company earned $1.37 EPS. The company’s revenue for the quarter was up 9.0% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, research analysts predict that Encompass Health Corporation will post 5.97 EPS for the current year.

Encompass Health Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st will be issued a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, July 1st. Encompass Health’s dividend payout ratio is currently 12.69%.

Insiders Place Their Bets

In other news, EVP Patrick William Tuer sold 682 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $104.56, for a total value of $71,309.92. Following the sale, the executive vice president directly owned 24,755 shares of the company’s stock, valued at approximately $2,588,382.80. This trade represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Treasurer Edmund Fay sold 11,937 shares of Encompass Health stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $107.00, for a total value of $1,277,259.00. Following the completion of the transaction, the treasurer owned 89,325 shares in the company, valued at $9,557,775. The trade was a 11.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.80% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. boosted its position in shares of Encompass Health by 3,059,159.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock valued at $402,640,000 after acquiring an additional 3,793,358 shares during the period. Norges Bank acquired a new position in Encompass Health during the 4th quarter valued at $133,221,000. Price T Rowe Associates Inc. MD boosted its holdings in Encompass Health by 24.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock valued at $510,047,000 after purchasing an additional 948,202 shares during the period. Millennium Management LLC boosted its holdings in Encompass Health by 140.0% in the 3rd quarter. Millennium Management LLC now owns 1,223,665 shares of the company’s stock valued at $155,430,000 after purchasing an additional 713,738 shares during the period. Finally, 8 Knots Management LLC acquired a new stake in Encompass Health in the 2nd quarter worth $78,644,000. 97.25% of the stock is owned by institutional investors.

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.