Key Points
- CEO Mark Tarr sold 173,148 shares of Encompass Health at an average price of $125.47, generating $21.72 million and reducing his ownership by 39.27%.
- Encompass Health exceeded quarterly earnings and revenue estimates, reporting $1.55 EPS and $1.60 billion in revenue, with year-over-year revenue growth of 9.6%.
- The company raised its quarterly dividend to $0.21 per share, while analysts maintained a “Moderate Buy” consensus with an average price target of $148.71.
Encompass Health Corporation (NYSE:EHC - Get Free Report) EVP John Patrick Darby sold 8,906 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the sale, the executive vice president owned 75,041 shares of the company's stock, valued at $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website.
Encompass Health Price Performance
NYSE EHC opened at $124.84 on Wednesday. Encompass Health Corporation has a fifty-two week low of $92.77 and a fifty-two week high of $127.99. The stock's 50-day moving average is $107.84 and its two-hundred day moving average is $104.99. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.17. The firm has a market cap of $12.32 billion, a P/E ratio of 20.33, a price-to-earnings-growth ratio of 2.55 and a beta of 0.72.
Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The firm's revenue was up 9.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, analysts anticipate that Encompass Health Corporation will post 6.08 earnings per share for the current fiscal year.
Encompass Health Increases Dividend
The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be given a dividend of $0.21 per share. The ex-dividend date of this dividend is Thursday, October 1st. This is an increase from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. Encompass Health's dividend payout ratio (DPR) is currently 12.38%.
Analyst Ratings Changes
A number of research firms have recently commented on EHC. TD Cowen lifted their price target on shares of Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Monday. Barclays upped their price objective on shares of Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Leerink Partners set a $152.00 target price on shares of Encompass Health in a report on Friday, May 22nd. Wall Street Zen lowered shares of Encompass Health from a "buy" rating to a "hold" rating in a research report on Saturday. Finally, Truist Financial upped their price target on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $148.71.
Get Our Latest Stock Report on Encompass Health
Institutional Inflows and Outflows
A number of large investors have recently modified their holdings of the business. Royal Bank of Canada boosted its position 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 valued at $8,960,000 after acquiring an additional 15,677 shares during the period. Millennium Management LLC increased its position in Encompass Health by 38.4% during the first quarter. Millennium Management LLC now owns 92,197 shares of the company's stock worth $9,338,000 after acquiring an additional 25,574 shares during the period. Caxton Associates LLP acquired a new position in Encompass Health during the 1st quarter valued at $259,000. Walleye Capital LLC raised its stake in Encompass Health by 667.6% during the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company's stock valued at $800,000 after purchasing an additional 7,671 shares during the last quarter. Finally, Gamco Investors INC. ET AL bought a new stake in Encompass Health in the 2nd quarter valued at $588,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.
About Encompass Health
(
Get Free Report)
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.
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