Encompass Health (NYSE:EHC) Shares Gap Down Following Analyst Downgrade

Encompass Health Co. (NYSE:EHCGet Rating) gapped down before the market opened on Tuesday after Truist Financial lowered their price target on the stock from $85.00 to $75.00. The stock had previously closed at $56.41, but opened at $54.50. Encompass Health shares last traded at $53.78, with a volume of 6,865 shares.

Several other equities analysts have also recently commented on the stock. TheStreet upgraded shares of Encompass Health from a “c+” rating to a “b-” rating in a research note on Tuesday, March 15th. Royal Bank of Canada cut their target price on shares of Encompass Health from $85.00 to $82.00 in a research note on Wednesday, June 8th. StockNews.com cut shares of Encompass Health from a “buy” rating to a “hold” rating in a research note on Friday, June 10th. Stephens cut their target price on shares of Encompass Health from $78.00 to $74.00 in a research note on Tuesday. Finally, Raymond James cut their target price on shares of Encompass Health from $85.00 to $70.00 in a research note on Friday. One investment analyst has rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $79.56.

In related news, Director Kevin J. O’connor acquired 1,000 shares of the firm’s stock in a transaction on Friday, May 6th. The shares were purchased at an average price of $66.48 per share, with a total value of $66,480.00. Following the acquisition, the director now directly owns 3,436 shares in the company, valued at $228,425.28. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 2.70% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of EHC. Morgan Stanley boosted its stake in shares of Encompass Health by 27.5% in the 2nd quarter. Morgan Stanley now owns 670,104 shares of the company’s stock valued at $52,288,000 after purchasing an additional 144,463 shares during the last quarter. HighTower Advisors LLC boosted its stake in Encompass Health by 18.6% during the 3rd quarter. HighTower Advisors LLC now owns 3,857 shares of the company’s stock worth $290,000 after acquiring an additional 605 shares during the last quarter. Franklin Resources Inc. boosted its stake in Encompass Health by 74.6% during the 3rd quarter. Franklin Resources Inc. now owns 4,661 shares of the company’s stock worth $350,000 after acquiring an additional 1,992 shares during the last quarter. Royal Bank of Canada boosted its stake in Encompass Health by 13.4% during the 3rd quarter. Royal Bank of Canada now owns 326,081 shares of the company’s stock worth $24,469,000 after acquiring an additional 38,517 shares during the last quarter. Finally, Gotham Asset Management LLC bought a new position in Encompass Health during the 3rd quarter worth approximately $279,000. 91.70% of the stock is currently owned by institutional investors.

The firm’s 50 day moving average is $64.98 and its two-hundred day moving average is $65.41. The firm has a market cap of $5.43 billion, a P/E ratio of 14.43, a price-to-earnings-growth ratio of 1.88 and a beta of 0.96. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 1.32.

Encompass Health (NYSE:EHCGet Rating) last announced its earnings results on Wednesday, April 27th. The company reported $0.97 EPS for the quarter, topping the consensus estimate of $0.93 by $0.04. The firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.32 billion. Encompass Health had a net margin of 7.51% and a return on equity of 17.99%. The business’s quarterly revenue was up 8.4% on a year-over-year basis. During the same period last year, the company posted $1.05 EPS. Analysts predict that Encompass Health Co. will post 4.09 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 20th. Shareholders of record on Wednesday, July 13th will be issued a dividend of $0.28 per share. The ex-dividend date of this dividend is Tuesday, July 12th. This represents a $1.12 annualized dividend and a yield of 2.06%. Encompass Health’s dividend payout ratio (DPR) is currently 28.64%.

Encompass Health Company Profile (NYSE:EHC)

Encompass Health Corporation provides facility-based and home-based post-acute healthcare services in the United States. The company operates in two segments, Inpatient Rehabilitation, and Home Health and Hospice. The Inpatient Rehabilitation segment provides specialized rehabilitative treatment on an inpatient and outpatient basis to patients who are recovering from conditions, such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations.

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