KeyCorp Upgrades Encompass Health (NYSE:EHC) to Strong-Buy

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

Several other research firms have also recently weighed in on EHC. UBS Group increased their price target on Encompass Health from $100.00 to $110.00 and gave the company a buy rating in a report on Wednesday, September 25th. Barclays dropped their target price on Encompass Health from $113.00 to $109.00 and set an overweight rating on the stock in a research report on Tuesday, August 6th. Stephens reaffirmed an overweight rating and set a $105.00 price target on shares of Encompass Health in a research report on Tuesday, August 6th. Truist Financial raised their price objective on shares of Encompass Health from $100.00 to $104.00 and gave the stock a buy rating in a report on Thursday, August 15th. Finally, Royal Bank of Canada increased their price target 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. Eight investment analysts have rated the stock with a buy rating and three have issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of Buy and a consensus target price of $104.22.

Encompass Health Trading Up 2.5 %

Encompass Health stock opened at $95.92 on Thursday. Encompass Health has a one year low of $57.55 and a one year high of $97.56. The business’s fifty day moving average is $91.81 and its 200 day moving average is $87.21. The stock has a market capitalization of $9.65 billion, a PE ratio of 24.47, a price-to-earnings-growth ratio of 1.43 and a beta of 0.88. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.35 and a quick ratio of 1.35.

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

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

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Investors of record on Tuesday, October 1st will be issued a $0.17 dividend. The ex-dividend date is Tuesday, October 1st. This represents a $0.68 annualized dividend and a yield of 0.71%. This is an increase from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s dividend payout ratio is currently 17.35%.

Insider Activity

In related news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction that occurred on Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the sale, the chief financial officer now owns 136,227 shares of the company’s stock, valued at approximately $11,761,839.18. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Several institutional investors have recently bought and sold shares of EHC. Commonwealth Equity Services LLC grew its position in shares of Encompass Health by 1.3% during the second quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company’s stock valued at $845,000 after purchasing an additional 123 shares in the last quarter. Legacy Wealth Asset Management LLC raised its holdings in shares of Encompass Health by 1.5% during the 1st quarter. Legacy Wealth Asset Management LLC now owns 8,619 shares of the company’s stock worth $712,000 after acquiring an additional 130 shares in the last quarter. Smith Group Asset Management LLC raised its holdings in shares of Encompass Health by 1.2% during the 1st quarter. Smith Group Asset Management LLC now owns 12,070 shares of the company’s stock worth $997,000 after acquiring an additional 140 shares in the last quarter. GAMMA Investing LLC grew its holdings in shares of Encompass Health by 31.9% in the first quarter. GAMMA Investing LLC now owns 616 shares of the company’s stock valued at $51,000 after purchasing an additional 149 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC increased its position in Encompass Health by 3.9% in the first 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 during the last quarter. 97.25% of the stock is owned by hedge funds and other 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.