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

Shares of Encompass Health Corporation (NYSE:EHC) have earned an average recommendation of “Buy” from the nine research firms that are presently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a hold recommendation, seven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $143.8571.

EHC has been the topic of several recent research reports. Barclays dropped their price objective on shares of 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 report on Thursday, May 28th. They set a “buy” rating and a $125.00 price objective on the stock. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Finally, Leerink Partners set a $152.00 price objective on shares of Encompass Health in a report on Friday, May 22nd.

Encompass Health Price Performance

NYSE EHC opened at $101.18 on Tuesday. The company has a market cap of $10.04 billion, a PE ratio of 16.89, a price-to-earnings-growth ratio of 2.27 and a beta of 0.72. Encompass Health has a 52 week low of $92.77 and a 52 week high of $127.99. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.76. The firm’s 50-day simple moving average is $103.86 and its two-hundred day simple moving average is $104.88.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.60 EPS for the quarter, beating the consensus estimate of $1.51 by $0.09. The business had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The company’s revenue was up 9.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Research analysts predict that Encompass Health will post 5.97 earnings per share for the current year.

Encompass Health Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be issued a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Wednesday, July 1st. Encompass Health’s dividend payout ratio is presently 12.69%.

Insider Activity

In other news, EVP Patrick William Tuer sold 682 shares of the stock in a transaction dated Monday, May 11th. The shares were 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 represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

A number of institutional investors and hedge funds have recently modified their holdings of EHC. Royal Bank of Canada lifted its holdings in shares of Encompass Health by 21.5% in the first quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock worth $8,960,000 after buying an additional 15,677 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of Encompass Health by 38.4% in the first quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock worth $9,338,000 after buying an additional 25,574 shares in the last quarter. Caxton Associates LLP purchased a new stake in shares of Encompass Health in the first quarter worth about $259,000. Walleye Capital LLC lifted its holdings in shares of Encompass Health by 667.6% in the second quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock worth $800,000 after buying an additional 7,671 shares in the last quarter. Finally, Gamco Investors INC. ET AL purchased a new stake in shares of Encompass Health in the second quarter worth about $588,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

About Encompass Health

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.