Encompass Health Co. (NYSE:EHC) Receives Average Recommendation of “Buy” from Brokerages

29 Sep 2024, 07:42 by Doug Wharley · The Cerbat Gem

Shares of Encompass Health Co. (NYSE:EHC – Get Free Report) have received an average recommendation of “Buy” from the ten brokerages that are presently covering the company, Marketbeat.com reports. Eight investment analysts have rated the stock with a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $102.88.

Several research analysts have recently weighed in on EHC shares. Royal Bank of Canada lifted their price objective on Encompass Health from $95.00 to $105.00 and gave the stock an “outperform” rating in a research report on Thursday. Truist Financial lifted their price objective on Encompass Health from $100.00 to $104.00 and gave the stock a “buy” rating in a research report on Thursday, August 15th. Stephens reissued an “overweight” rating and issued a $105.00 price objective on shares of Encompass Health in a research report on Tuesday, August 6th. Leerink Partners initiated coverage on Encompass Health in a research report on Wednesday, July 10th. They issued an “outperform” rating and a $100.00 price objective for the company. Finally, Barclays reduced their target price on Encompass Health from $113.00 to $109.00 and set an “overweight” rating for the company in a research note on Tuesday, August 6th.

Read Our Latest Analysis on EHC

Encompass Health Stock Down 1.2 %

Shares of NYSE:EHC opened at $96.01 on Friday. The firm has a market cap of $9.67 billion, a P/E ratio of 25.95, a P/E/G ratio of 1.41 and a beta of 0.88. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.08. Encompass Health has a 12-month low of $57.55 and a 12-month high of $97.56. The business has a fifty day simple moving average of $91.00 and a 200 day simple moving average of $85.98.

Encompass Health (NYSE:EHC – Get Free Report) last announced its earnings results on Monday, August 5th. The company reported $1.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.10. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The business had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period last year, the company earned $0.95 EPS. Encompass Health’s revenue for the quarter was up 9.6% compared to the same quarter last year. Analysts predict that Encompass Health will post 4.18 earnings per share for the current year.

Encompass Health Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 15th. Shareholders of record on Tuesday, October 1st will be paid a dividend of $0.17 per share. The ex-dividend date is Tuesday, October 1st. This represents a $0.68 dividend on an annualized basis and a yield of 0.71%. This is an increase from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s payout ratio is 18.38%.

Encompass Health declared that its board has initiated a share repurchase plan on Wednesday, July 24th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to buy up to 5.4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the completion of the transaction, the chief financial officer now owns 136,227 shares in the company, valued at approximately $11,761,839.18. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its position in shares of Encompass Health by 1.7% during the 1st quarter. Vanguard Group Inc. now owns 10,166,147 shares of the company’s stock worth $839,520,000 after buying an additional 169,113 shares in the last quarter. Wellington Management Group LLP lifted its position in shares of Encompass Health by 5.8% during the 4th quarter. Wellington Management Group LLP now owns 8,215,770 shares of the company’s stock worth $548,156,000 after buying an additional 449,230 shares in the last quarter. TD Asset Management Inc lifted its position in shares of Encompass Health by 16.0% during the 1st quarter. TD Asset Management Inc now owns 2,283,674 shares of the company’s stock worth $188,586,000 after buying an additional 314,488 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Encompass Health by 1.2% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,819,345 shares of the company’s stock worth $156,083,000 after purchasing an additional 22,311 shares during the period. Finally, Epoch Investment Partners Inc. raised its holdings in shares of Encompass Health by 14.2% in the 1st quarter. Epoch Investment Partners Inc. now owns 1,598,042 shares of the company’s stock worth $131,966,000 after purchasing an additional 198,701 shares during the period. Institutional investors own 97.25% of the company’s stock.

Encompass Health Company Profile

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