Encompass Health Co. (EHC), a leading provider of post-acute healthcare services, has received a positive rating of “Strong Buy” from seven analysts covering the company, according to STA Research. Out of the analysts, one has assigned a hold rating, five have given a buy rating, and one has issued a strong buy rating for the company. Additionally, the average one-year target price suggested by analysts who have released reports on the stock in the past year is $71.94.
Analyst Stock Forecast & Price Targets
Encompass Health Corp, according to a forecast by 11 analysts, has an average analyst target price of USD 71.94 for the next 12 months. The overall analyst rating for Encompass Health Corp is Strong Buy. However, Stock Target Advisor’s analysis of the company suggests a Neutral stance, considering 7 positive signals and 7 negative signals. As of the latest closing, Encompass Health Corp’s stock price stood at USD 67.17. Over the past week, the stock price has shown a positive change of +2.28%, while over the past month, it has increased by +5.43%. Looking back over the last year, Encompass Health Corp’s stock price has experienced a significant rise of +39.07%. StockNews.com, in a research note on May 18th, initiated coverage on Encompass Health with a “buy” rating. Lastly, Mizuho raised their price target on the stock from $69.00 to $74.00 on May 1st.
Institutional Investors Show Confidence in EHC Stock
Significant institutional investors have recently made changes to their positions in Encompass Health. Baupost Group LLC MA increased its holdings in the company by 318.9% during the first quarter, now owning 3,000,000 shares valued at $213,330,000 after acquiring an additional 2,283,900 shares. Norges Bank also purchased a new position in Encompass Health in the fourth quarter, with a value of approximately $58,988,000. William Blair Investment Management LLC raised its holdings in the company by 20.0% in the first quarter, now owning 5,307,518 shares worth $287,137,000 after adding an additional 883,930 shares. Lastly, Point72 Asset Management L.P. increased its holdings in the company by 54.9% during the fourth quarter, now owning 1,770,377 shares valued at $105,886,000 after purchasing an additional 627,500 shares. Currently, institutional investors own approximately 92.78% of Encompass Health’s stock.
Encompass Health Price Performance and Financials
On Friday, Encompass Health’s shares opened at $67.20. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.29, and a quick ratio of 1.29. Over the past year, Encompass Health’s stock has ranged from a low of $45.11 to a high of $67.90. As of the latest data, the stock has a 50-day moving average of $63.67 and a 200-day moving average of $60.84. With a market capitalization of $6.74 billion, Encompass Health has a price-to-earnings (P/E) ratio of 24.89 and a price-to-earnings growth (P/E/G) ratio of 1.79. The company’s beta is 1.07, indicating moderate volatility.
In terms of financial performance, Encompass Health announced its earnings results on April 28th. The company reported earnings per share (EPS) of $0.88 for the quarter, surpassing the consensus estimate of $0.70 by $0.18. Encompass Health generated $1.16 billion in revenue during the quarter, slightly higher than analyst estimates of $1.14 billion. The company’s return on equity stood at 16.80%, while the net margin was 5.75%. However, the company experienced a 13.0% decline in revenue compared to the same quarter in the previous year. In the prior year’s corresponding quarter, Encompass Health had earnings per share of $0.97. Analysts predict EHC Stock will post earnings per share of 3.19 for the current year.
Dividend Announcement
Encompass Health recently declared a quarterly dividend, which will be paid on July 17th. Shareholders of record on July 3rd will receive a dividend of $0.15 per share. The ex-dividend date is June 30th. The current dividend payout represents an annualized rate of $0.60 per share and yields 0.89% based on the stock’s current price. Encompass Health’s dividend payout ratio (DPR) currently stands at 22.22%.
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