Encompass Health (NYSE:EHC) Shares Gap Up Following Better-Than-Expected Earnings

Encompass Health Co. (NYSE:EHC) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $98.60, but opened at $102.36. Encompass Health shares last traded at $99.32, with a volume of 510,238 shares trading hands.

The company reported $1.17 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.12. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on EHC shares. Barclays increased their price objective on shares of Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a report on Tuesday, October 29th. Royal Bank of Canada lifted their target price on shares of Encompass Health from $105.00 to $110.00 and gave the company an “outperform” rating in a report on Wednesday, October 30th. KeyCorp raised their target price on Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a report on Tuesday, October 29th. William Blair reaffirmed an “outperform” rating on shares of Encompass Health in a research report on Friday. Finally, Truist Financial reaffirmed a “buy” rating and set a $116.00 price target (up from $108.00) on shares of Encompass Health in a report on Wednesday, October 30th. Nine equities research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Encompass Health currently has an average rating of “Buy” and an average target price of $107.11.

Hedge Funds Weigh In On Encompass Health

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. MassMutual Private Wealth & Trust FSB increased its stake in Encompass Health by 87.8% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 293 shares of the company’s stock valued at $27,000 after buying an additional 137 shares during the period. UMB Bank n.a. raised its position in Encompass Health by 387.7% in the third quarter. UMB Bank n.a. now owns 317 shares of the company’s stock worth $31,000 after acquiring an additional 252 shares in the last quarter. V Square Quantitative Management LLC raised its holdings in shares of Encompass Health by 53.0% in the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock worth $39,000 after purchasing an additional 140 shares in the last quarter. Avior Wealth Management LLC bought a new stake in Encompass Health during the third quarter worth approximately $40,000. Finally, Tompkins Financial Corp bought a new position in shares of Encompass Health in the fourth quarter valued at $46,000. 97.25% of the stock is owned by institutional investors.

Encompass Health Stock Performance

The firm has a fifty day moving average price of $96.34 and a 200 day moving average price of $95.10. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.04 and a quick ratio of 1.04. The firm has a market capitalization of $10.03 billion, a PE ratio of 24.05, a P/E/G ratio of 1.18 and a beta of 0.90.

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.