Encompass Health (NYSE:EHC) Upgraded to “Strong-Buy” at KeyCorp

KeyCorp upgraded shares of Encompass Health (NYSE:EHC) to a strong-buy rating in a report issued on Thursday, Zacks.com reports.

A number of other research firms have also recently issued reports on EHC. Leerink Partners began coverage on Encompass Health in a report on Wednesday, July 10th. They issued an outperform rating and a $100.00 price objective for the company. Stephens reiterated an overweight rating and set a $105.00 price target on shares of Encompass Health in a research report on Tuesday, August 6th. Truist Financial upped their price target on shares of Encompass Health from $100.00 to $104.00 and gave the company a buy rating in a research report on Thursday, August 15th. Barclays lowered their target price on Encompass Health from $113.00 to $109.00 and set an overweight rating for the company in a research note on Tuesday, August 6th. Finally, Royal Bank of Canada raised their price target on Encompass Health from $95.00 to $105.00 and gave the stock an outperform rating in a research report on Thursday, September 26th. Eight research analysts have rated the stock with a buy rating and three have given a strong buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of Buy and an average price target of $104.22.

Encompass Health Price Performance

EHC stock opened at $95.92 on Thursday. Encompass Health has a 12 month low of $57.55 and a 12 month high of $97.56. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08. The firm has a market capitalization of $9.65 billion, a P/E ratio of 24.47, a price-to-earnings-growth ratio of 1.43 and a beta of 0.88. The firm has a 50 day moving average of $91.81 and a 200-day moving average of $87.21.

Encompass Health (NYSE:EHC) last issued its quarterly earnings data on Monday, August 5th. The company reported $1.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.01 by $0.10. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The company 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 business posted $0.95 earnings per share. The firm’s revenue was up 9.6% compared to the same quarter last year. As a group, sell-side analysts predict that Encompass Health will post 4.18 earnings per share for the current fiscal year.

Encompass Health declared that its board has initiated a share buyback program on Wednesday, July 24th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 5.4% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st will be paid a dividend of $0.17 per share. This is a positive change from Encompass Health’s previous quarterly dividend of $0.15. The ex-dividend date of this dividend is Tuesday, October 1st. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.71%. Encompass Health’s payout ratio is presently 17.35%.

Insiders Place Their Bets

In other news, CFO Douglas E. Coltharp sold 12,260 shares of the stock in a transaction that occurred on 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 completion of the transaction, the chief financial officer now owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Encompass Health

Several large investors have recently made changes to their positions in the business. Creative Planning increased its position in Encompass Health by 4.1% during the 3rd quarter. Creative Planning now owns 19,086 shares of the company’s stock valued at $1,844,000 after buying an additional 743 shares in the last quarter. Oliver Luxxe Assets LLC increased its holdings in shares of Encompass Health by 43.7% during the third quarter. Oliver Luxxe Assets LLC now owns 60,553 shares of the company’s stock valued at $5,852,000 after acquiring an additional 18,407 shares in the last quarter. CHICAGO TRUST Co NA purchased a new position in shares of Encompass Health in the 3rd quarter worth about $221,000. Reinhart Partners LLC. boosted its stake in Encompass Health by 2.4% in the 3rd quarter. Reinhart Partners LLC. now owns 673,040 shares of the company’s stock worth $65,043,000 after purchasing an additional 15,550 shares in the last quarter. Finally, West Coast Financial LLC grew its position in Encompass Health by 1.5% during the 3rd quarter. West Coast Financial LLC now owns 47,671 shares of the company’s stock valued at $4,607,000 after purchasing an additional 697 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

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.