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

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

A number of other equities analysts have also recently issued reports on EHC. UBS Group upped their price objective on shares of Encompass Health from $100.00 to $110.00 and gave the stock a buy rating in a research report on Wednesday, September 25th. Leerink Partners began coverage on shares of Encompass Health in a research report on Wednesday, July 10th. They set an outperform rating and a $100.00 price objective for the company. Leerink Partnrs upgraded shares of Encompass Health to a strong-buy rating in a research report on Wednesday, July 10th. Royal Bank of Canada upped their price objective on shares of Encompass Health from $95.00 to $105.00 and gave the stock an outperform rating in a research report on Thursday, September 26th. Finally, Barclays lowered their price objective on shares of Encompass Health from $113.00 to $109.00 and set an overweight rating for the company in a research report on Tuesday, August 6th. Eight investment analysts have rated the stock with a buy rating and three have given a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of Buy and a consensus price target of $104.22.

Encompass Health Stock Up 2.6 %

Encompass Health stock opened at $95.97 on Thursday. The company has a market cap of $9.66 billion, a P/E ratio of 25.94, a price-to-earnings-growth ratio of 1.43 and a beta of 0.88. Encompass Health has a 1-year low of $57.55 and a 1-year high of $97.56. The company has a fifty day simple moving average of $91.81 and a 200 day simple moving average of $87.35. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Monday, August 5th. The company reported $1.11 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.10. The firm had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.30 billion. Encompass Health had a net margin of 7.88% and a return on equity of 17.83%. The company’s revenue for the quarter was up 9.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.95 earnings per share. Research analysts anticipate that Encompass Health will post 4.18 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 15th. Shareholders of record on Tuesday, October 1st will be paid a dividend of $0.17 per share. The ex-dividend date is Tuesday, October 1st. This is an increase from Encompass Health’s previous quarterly dividend of $0.15. This represents a $0.68 annualized dividend and a dividend yield of 0.71%. Encompass Health’s dividend payout ratio (DPR) is 18.38%.

Encompass Health declared that its board has approved a stock repurchase program on Wednesday, July 24th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 5.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In related news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction on Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total value of $1,058,528.40. Following the transaction, the chief financial officer now directly owns 136,227 shares of the company’s stock, valued at $11,761,839.18. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 2.10% of the company’s stock.

Institutional Trading of Encompass Health

Large investors have recently added to or reduced their stakes in the stock. Commonwealth Equity Services LLC boosted its stake in Encompass Health by 1.3% in the 2nd quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company’s stock worth $845,000 after purchasing an additional 123 shares in the last quarter. Legacy Wealth Asset Management LLC boosted its stake in Encompass Health by 1.5% in the 1st quarter. Legacy Wealth Asset Management LLC now owns 8,619 shares of the company’s stock worth $712,000 after purchasing an additional 130 shares in the last quarter. Smith Group Asset Management LLC boosted its stake in Encompass Health by 1.2% in the 1st quarter. Smith Group Asset Management LLC now owns 12,070 shares of the company’s stock worth $997,000 after purchasing an additional 140 shares in the last quarter. GAMMA Investing LLC boosted its stake in Encompass Health by 31.9% in the 1st quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock worth $51,000 after purchasing an additional 149 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC boosted its stake in Encompass Health by 3.9% in the 1st quarter. O Shaughnessy Asset Management LLC now owns 4,246 shares of the company’s stock worth $351,000 after purchasing an additional 160 shares in the last quarter. Institutional investors own 97.25% of the company’s stock.

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.