Encompass Health (NYSE:EHC) Shares Gap Up – Here’s Why

Encompass Health Corporation (NYSE:EHC) shares gapped up prior to trading on Monday . The stock had previously closed at $97.39, but opened at $102.08. Encompass Health shares last traded at $103.5710, with a volume of 234,230 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Barclays boosted their target price on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a report on Friday, February 6th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, Encompass Health currently has a consensus rating of “Buy” and a consensus target price of $143.29.

Encompass Health Stock Performance

The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.08 and a current ratio of 1.08. The stock has a market capitalization of $10.26 billion, a P/E ratio of 18.65, a PEG ratio of 1.87 and a beta of 0.75. The business has a 50-day moving average price of $102.36 and a 200 day moving average price of $110.13.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data on Thursday, February 5th. The company reported $1.46 earnings per share for the quarter, beating analysts’ consensus estimates of $1.29 by $0.17. The company had revenue of $3.09 billion during the quarter, compared to analyst estimates of $1.54 billion. Encompass Health had a return on equity of 18.20% and a net margin of 9.54%.The firm’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter last year, the company earned $1.17 EPS. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. As a group, sell-side analysts forecast that Encompass Health Corporation will post 4.8 EPS for the current fiscal year.

Encompass Health Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st will be given a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, April 1st. Encompass Health’s payout ratio is currently 13.72%.

Insider Transactions at Encompass Health

In related news, CEO Mark J. Tarr sold 150,000 shares of the company’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total value of $16,746,000.00. Following the transaction, the chief executive officer owned 377,070 shares in the company, valued at $42,096,094.80. The trade was a 28.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Treasurer Edmund Fay sold 11,937 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the sale, the treasurer directly owned 89,325 shares in the company, valued at $9,557,775. This trade represents a 11.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

A number of hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada raised its position in Encompass Health by 21.5% in the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock worth $8,960,000 after buying an additional 15,677 shares during the last quarter. Millennium Management LLC lifted 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 valued at $9,338,000 after purchasing an additional 25,574 shares during the period. Caxton Associates LLP bought a new position in Encompass Health during the first quarter valued at approximately $259,000. Walleye Trading LLC purchased a new stake in Encompass Health in the second quarter worth approximately $318,000. Finally, EverSource Wealth Advisors LLC grew its position in Encompass Health by 13.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,454 shares of the company’s stock worth $546,000 after purchasing an additional 528 shares during the period. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Company Profile

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.