Truist Financial Reaffirms “Buy” Rating for Encompass Health (NYSE:EHC)

Encompass Health (NYSE:EHC)‘s stock had its “buy” rating restated by equities research analysts at Truist Financial in a research report issued to clients and investors on Wednesday, Benzinga reports. They currently have a $116.00 price target on the stock, up from their prior price target of $108.00. Truist Financial’s price objective would indicate a potential upside of 16.68% from the company’s previous close.

A number of other brokerages have also issued reports on EHC. Stephens reissued an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a report on Tuesday, August 6th. KeyCorp raised their target price on Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a research note on Tuesday. UBS Group upped their price target on Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a research report on Wednesday, September 25th. Barclays increased their price objective on Encompass Health from $109.00 to $116.00 and gave the stock an “overweight” rating in a report on Tuesday. Finally, Royal Bank of Canada boosted their target price on Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a research note on Thursday, September 26th. Nine analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $107.11.

Encompass Health Trading Down 1.9 %

Shares of EHC stock opened at $99.42 on Wednesday. The business has a 50-day moving average of $94.33 and a 200 day moving average of $88.69. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.04 and a quick ratio of 1.35. Encompass Health has a 1-year low of $61.08 and a 1-year high of $102.36. The stock has a market capitalization of $10.00 billion, a PE ratio of 24.01, a P/E/G ratio of 1.47 and a beta of 0.88.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Monday, October 28th. The company reported $1.03 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.09. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%. The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same quarter in the prior year, the firm posted $0.86 earnings per share. The business’s quarterly revenue was up 11.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Encompass Health will post 4.27 earnings per share for the current year.

Encompass Health announced that its Board of Directors has approved a share buyback plan on Wednesday, July 24th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction dated Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the completion of the transaction, the chief financial officer now directly owns 136,227 shares of the company’s stock, valued at $11,761,839.18. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Several institutional investors and hedge funds have recently modified their holdings of EHC. Commonwealth Equity Services LLC increased its stake in Encompass Health by 1.3% during the 2nd 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 increased its position in shares of Encompass Health by 1.5% during the first quarter. Legacy Wealth Asset Management LLC now owns 8,619 shares of the company’s stock valued at $712,000 after acquiring an additional 130 shares in the last quarter. Smith Group Asset Management LLC raised its holdings in Encompass Health by 1.2% in 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 during the last quarter. V Square Quantitative Management LLC lifted its position in Encompass Health by 53.0% in the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock valued at $39,000 after acquiring an additional 140 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC boosted its stake in Encompass Health by 3.9% during the 1st quarter. O Shaughnessy Asset Management LLC now owns 4,246 shares of the company’s stock valued at $351,000 after purchasing an additional 160 shares during the last quarter. 97.25% of the stock is currently owned by 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.