Encompass Health (NYSE:EHC) Upgraded by Wall Street Zen to Buy Rating

Wall Street Zen upgraded shares of Encompass Health (NYSE:EHC) from a hold rating to a buy rating in a research report released on Sunday morning.

A number of other research firms have also recently issued reports on EHC. Weiss Ratings reiterated a “buy (b+)” rating on shares of Encompass Health in a research note on Wednesday, October 8th. UBS Group lifted their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Thursday, October 2nd. Barclays boosted their target price on shares of Encompass Health from $141.00 to $150.00 and gave the company an “overweight” rating in a research note on Thursday, October 30th. Zacks Research lowered shares of Encompass Health from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th. Finally, Raymond James Financial raised Encompass Health to a “strong-buy” rating in a report on Friday, October 31st. Two investment analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $142.86.

Encompass Health Stock Performance

Shares of EHC stock opened at $100.49 on Friday. The company has a market cap of $10.11 billion, a P/E ratio of 19.00, a PEG ratio of 1.62 and a beta of 0.74. The business has a 50 day moving average of $109.34 and a two-hundred day moving average of $116.27. Encompass Health has a 52 week low of $92.53 and a 52 week high of $127.99. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Wednesday, October 29th. The company reported $1.23 earnings per share for the quarter, topping analysts’ consensus estimates of $1.19 by $0.04. The business had revenue of $1.48 billion for the quarter, compared to analysts’ expectations of $1.48 billion. Encompass Health had a return on equity of 17.84% and a net margin of 9.33%.The business’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the firm earned $1.03 EPS. As a group, analysts anticipate that Encompass Health will post 4.8 EPS for the current year.

Encompass Health Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, January 15th. Shareholders of record on Friday, January 2nd were given a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Friday, January 2nd. Encompass Health’s dividend payout ratio is 14.37%.

Institutional Trading of Encompass Health

A number of hedge funds and other institutional investors have recently modified their holdings of EHC. Citizens National Bank Trust Department bought a new position in Encompass Health during the third quarter valued at about $26,000. First Horizon Corp bought a new position in shares of Encompass Health during the 3rd quarter valued at about $34,000. Westside Investment Management Inc. grew its stake in shares of Encompass Health by 56.7% in the 3rd quarter. Westside Investment Management Inc. now owns 279 shares of the company’s stock worth $35,000 after purchasing an additional 101 shares during the last quarter. Assetmark Inc. raised its holdings in shares of Encompass Health by 88.1% in the 3rd quarter. Assetmark Inc. now owns 299 shares of the company’s stock worth $38,000 after purchasing an additional 140 shares in the last quarter. Finally, Root Financial Partners LLC acquired a new stake in Encompass Health during the third quarter valued at approximately $39,000. Institutional investors own 97.25% of the company’s stock.

About Encompass Health

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.