Encompass Health Co. Announces Quarterly Dividend of $0.17 (NYSE:EHC)

by · The Markets Daily

Encompass Health Co. (NYSE:EHC – Get Free Report) declared a quarterly dividend on Thursday, October 17th, Zacks reports. Investors of record on Thursday, January 2nd will be paid a dividend of 0.17 per share on Wednesday, January 15th. This represents a $0.68 annualized dividend and a yield of 0.70%. The ex-dividend date of this dividend is Thursday, January 2nd.

Encompass Health has decreased its dividend by an average of 18.8% annually over the last three years. Encompass Health has a dividend payout ratio of 14.6% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Encompass Health to earn $4.63 per share next year, which means the company should continue to be able to cover its $0.68 annual dividend with an expected future payout ratio of 14.7%.

Encompass Health Price Performance

Shares of EHC stock opened at $96.90 on Friday. The stock has a market capitalization of $9.76 billion, a price-to-earnings ratio of 26.19, a P/E/G ratio of 1.43 and a beta of 0.88. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08. Encompass Health has a twelve month low of $57.55 and a twelve month high of $98.74. The stock has a fifty day simple moving average of $92.62 and a two-hundred day simple moving average of $87.67.

Encompass Health (NYSE:EHC – Get Free Report) last posted its earnings results on Monday, August 5th. The company reported $1.11 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.10. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The business had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the firm posted $0.95 EPS. The company’s revenue for the quarter was up 9.6% on a year-over-year basis. On average, analysts predict that Encompass Health will post 4.18 EPS for the current fiscal year.

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

Analysts Set New Price Targets

EHC has been the subject of several analyst reports. Stephens reissued an “overweight” rating and set a $105.00 price target on shares of Encompass Health in a research report on Tuesday, August 6th. UBS Group increased their target price on shares of Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research report on Wednesday, September 25th. Truist Financial lifted their price target on shares of Encompass Health from $104.00 to $108.00 and gave the stock a “buy” rating in a report on Monday. Barclays reduced their price target on Encompass Health from $113.00 to $109.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 6th. Finally, Leerink Partners started coverage on Encompass Health in a research note on Wednesday, July 10th. They set an “outperform” rating and a $100.00 target price on the stock. Eight research analysts have rated the stock with a buy rating and three have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Encompass Health has a consensus rating of “Buy” and an average target price of $104.67.

Check Out Our Latest Research Report on Encompass Health

Insider Buying and Selling

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value of $1,058,528.40. Following the transaction, the chief financial officer now directly owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 2.10% of the stock is currently owned by company insiders.

Encompass Health Company Profile

(Get Free Report)

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.

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