Encompass Health (NYSE:EHC) Sets New 1-Year High After Insider Buying Activity

Encompass Health Co. (NYSE:EHC)’s share price reached a new 52-week high during mid-day trading on Tuesday after an insider bought additional shares in the company. The stock traded as high as $85.97 and last traded at $85.73, with a volume of 105271 shares traded. The stock had previously closed at $84.51.

Specifically, CEO Mark J. Tarr sold 44,976 shares of the company’s stock in a transaction dated Tuesday, April 30th. The stock was sold at an average price of $83.27, for a total value of $3,745,151.52. Following the completion of the sale, the chief executive officer now owns 554,098 shares of the company’s stock, valued at $46,139,740.46. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In related news, EVP John Patrick Darby sold 14,543 shares of the business’s stock in a transaction dated Monday, May 6th. The stock was sold at an average price of $83.94, for a total value of $1,220,739.42. Following the transaction, the executive vice president now owns 84,773 shares in the company, valued at $7,115,845.62. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Mark J. Tarr sold 44,976 shares of the business’s stock in a transaction dated Tuesday, April 30th. The stock was sold at an average price of $83.27, for a total value of $3,745,151.52. Following the completion of the transaction, the chief executive officer now owns 554,098 shares in the company, valued at approximately $46,139,740.46. The disclosure for this sale can be found here. 2.10% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms recently commented on EHC. William Blair reiterated an “outperform” rating on shares of Encompass Health in a research note on Wednesday, February 7th. Stephens reiterated an “overweight” rating and issued a $85.00 price target on shares of Encompass Health in a research note on Tuesday, January 16th. Royal Bank of Canada restated an “outperform” rating and set a $83.00 price objective on shares of Encompass Health in a research note on Friday, February 9th. Mizuho upped their price objective on Encompass Health from $93.00 to $95.00 and gave the company a “buy” rating in a research note on Thursday, April 25th. Finally, Raymond James restated a “strong-buy” rating and set a $95.00 price objective (up previously from $85.00) on shares of Encompass Health in a research note on Friday, April 26th. Eight investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Encompass Health presently has a consensus rating of “Buy” and a consensus target price of $90.29.

Encompass Health Price Performance

The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 1.14. The stock has a market capitalization of $8.65 billion, a price-to-earnings ratio of 23.36, a P/E/G ratio of 1.30 and a beta of 0.92. The company’s 50-day simple moving average is $79.33 and its 200 day simple moving average is $71.79.

Encompass Health (NYSE:EHC) last posted its earnings results on Wednesday, April 24th. The company reported $1.12 EPS for the quarter, topping the consensus estimate of $0.93 by $0.19. The firm had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.27 billion. Encompass Health had a net margin of 7.60% and a return on equity of 18.01%. The business’s quarterly revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.88 earnings per share. Equities research analysts forecast that Encompass Health Co. will post 4.1 EPS for the current year.

Encompass Health Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, July 15th. Stockholders of record on Monday, July 1st will be given a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 0.70%. The ex-dividend date is Friday, June 28th. Encompass Health’s dividend payout ratio is currently 16.22%.

Hedge Funds Weigh In On Encompass Health

A number of institutional investors have recently made changes to their positions in EHC. TD Asset Management Inc increased its stake in shares of Encompass Health by 239.6% in the fourth quarter. TD Asset Management Inc now owns 1,969,186 shares of the company’s stock worth $131,384,000 after purchasing an additional 1,389,275 shares during the period. 8 Knots Management LLC bought a new position in shares of Encompass Health in the fourth quarter worth about $75,424,000. Norges Bank bought a new position in shares of Encompass Health in the fourth quarter worth about $69,178,000. Invesco Ltd. increased its stake in shares of Encompass Health by 22.3% in the third quarter. Invesco Ltd. now owns 3,974,306 shares of the company’s stock worth $266,914,000 after purchasing an additional 724,544 shares during the period. Finally, Epoch Investment Partners Inc. increased its stake in shares of Encompass Health by 102.9% in the fourth quarter. Epoch Investment Partners Inc. now owns 1,399,341 shares of the company’s stock worth $93,364,000 after purchasing an additional 709,593 shares during the period. 97.25% of the stock is currently owned by 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.