Encompass Health (NYSE:EHC) Shares Gap Up After Dividend Announcement

Shares of Encompass Health Corporation (NYSE:EHC) gapped up prior to trading on Friday following a dividend announcement from the company. The stock had previously closed at $111.06, but opened at $115.00. Encompass Health shares last traded at $115.2860, with a volume of 61,176 shares traded.

The newly announced dividend which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be issued a $0.21 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s payout ratio is currently 12.69%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Barclays lowered their price objective on Encompass Health from $153.00 to $140.00 and set an “overweight” rating on the stock in a research report on Tuesday, May 5th. Weiss Ratings cut shares of Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research note on Friday, May 22nd. TD Cowen began coverage on shares of Encompass Health in a research report on Thursday, May 28th. They set a “buy” rating and a $125.00 price target on the stock. Finally, Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $143.86.

Encompass Health Stock Up 1.4%

The stock has a 50-day moving average of $104.97 and a 200-day moving average of $103.80. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.17 and a quick ratio of 1.17. The firm has a market cap of $11.18 billion, a price-to-earnings ratio of 18.81, a P/E/G ratio of 2.46 and a beta of 0.74.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.09. The firm had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.57 billion. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The company’s quarterly revenue was up 9.0% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.37 EPS. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Sell-side analysts predict that Encompass Health Corporation will post 5.96 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Patrick William Tuer sold 682 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $104.56, for a total transaction of $71,309.92. Following the completion of the sale, the executive vice president owned 24,755 shares of the company’s stock, valued at $2,588,382.80. This represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 1.80% of the stock is owned by corporate insiders.

Institutional Trading of Encompass Health

Institutional investors and hedge funds have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. boosted its position in shares of Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after acquiring an additional 3,793,358 shares in the last quarter. Norges Bank bought a new stake in Encompass Health during the fourth quarter worth $133,221,000. Price T Rowe Associates Inc. MD boosted its holdings in shares of 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 in the last quarter. Millennium Management LLC boosted its holdings in shares of 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 in the last quarter. Finally, 8 Knots Management LLC bought a new position in shares of Encompass Health in the 2nd quarter valued at $78,644,000. Institutional investors own 97.25% of the company’s stock.

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.