Encompass Health (NYSE:EHC) Reaches New 1-Year High After Better-Than-Expected Earnings

Encompass Health Co. (NYSE:EHC) shares reached a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $85.01 and last traded at $85.01, with a volume of 434 shares trading hands. The stock had previously closed at $82.80.

The company reported $1.12 EPS for the quarter, topping analysts’ consensus estimates of $0.93 by $0.19. Encompass Health had a net margin of 7.60% and a return on equity of 18.48%. The company had revenue of $1.32 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter last year, the business earned $0.88 EPS. The firm’s revenue was up 13.4% compared to the same quarter last year.

Encompass Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 15th. Shareholders of record on Monday, April 1st were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 0.73%. The ex-dividend date was Thursday, March 28th. Encompass Health’s dividend payout ratio (DPR) is currently 16.22%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on EHC shares. William Blair reaffirmed an “outperform” rating on shares of Encompass Health in a report on Wednesday, February 7th. Truist Financial increased their price objective on shares of Encompass Health from $82.00 to $86.00 and gave the company a “buy” rating in a report on Friday, February 9th. Royal Bank of Canada reaffirmed an “outperform” rating and set a $83.00 price objective on shares of Encompass Health in a report on Friday, February 9th. Raymond James reissued a “strong-buy” rating and issued a $95.00 target price (up from $85.00) on shares of Encompass Health in a report on Friday. Finally, Barclays raised their target price on shares of Encompass Health from $101.00 to $108.00 and gave the company an “overweight” rating in a report on Thursday. Eight research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Encompass Health presently has a consensus rating of “Buy” and a consensus target price of $86.56.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of EHC. AE Wealth Management LLC boosted its stake in Encompass Health by 26.8% during the third quarter. AE Wealth Management LLC now owns 6,381 shares of the company’s stock worth $429,000 after buying an additional 1,350 shares during the period. Oak Thistle LLC purchased a new position in Encompass Health during the third quarter worth $814,000. Linden Thomas Advisory Services LLC lifted its position in shares of Encompass Health by 22.1% during the third quarter. Linden Thomas Advisory Services LLC now owns 15,220 shares of the company’s stock worth $1,022,000 after purchasing an additional 2,754 shares during the last quarter. Copeland Capital Management LLC lifted its position in shares of Encompass Health by 0.5% during the third quarter. Copeland Capital Management LLC now owns 1,277,690 shares of the company’s stock worth $85,810,000 after purchasing an additional 6,009 shares during the last quarter. Finally, Tectonic Advisors LLC bought a new stake in shares of Encompass Health during the third quarter worth $343,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

Encompass Health Stock Performance

The firm has a market capitalization of $8.26 billion, a P/E ratio of 22.29, a P/E/G ratio of 1.53 and a beta of 0.94. The firm has a 50-day moving average price of $78.25 and a two-hundred day moving average price of $70.87. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.28 and a quick ratio of 1.28.

About Encompass Health

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.