Analysts Offer Predictions for Encompass Health Co.’s FY2024 Earnings (NYSE:EHC)

Encompass Health Co. (NYSE:EHC) – Stock analysts at KeyCorp issued their FY2024 earnings estimates for Encompass Health in a research report issued to clients and investors on Thursday, October 10th. KeyCorp analyst M. Gillmor anticipates that the company will earn $4.18 per share for the year. KeyCorp currently has a “Strong-Buy” rating on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $4.18 per share. KeyCorp also issued estimates for Encompass Health’s FY2025 earnings at $4.71 EPS and FY2026 earnings at $5.30 EPS.

Several other equities research analysts have also weighed in on EHC. Barclays lowered their price objective on Encompass Health from $113.00 to $109.00 and set an “overweight” rating on the stock in a research note on Tuesday, August 6th. Stephens reiterated an “overweight” rating and set a $105.00 price objective on shares of Encompass Health in a research note on Tuesday, August 6th. Truist Financial boosted their target price on shares of Encompass Health from $104.00 to $108.00 and gave the company a “buy” rating in a research note on Monday. Royal Bank of Canada lifted their price target on shares of Encompass Health from $95.00 to $105.00 and gave the company an “outperform” rating in a report on Thursday, September 26th. Finally, Leerink Partnrs upgraded shares of Encompass Health to a “strong-buy” rating in a research report on Wednesday, July 10th. Eight research analysts have rated the stock with a buy rating and three have issued a strong buy rating to the company. According to data from MarketBeat.com, Encompass Health has a consensus rating of “Buy” and a consensus price target of $104.67.

Encompass Health Price Performance

Shares of Encompass Health stock opened at $96.35 on Monday. Encompass Health has a twelve month low of $57.55 and a twelve month high of $97.56. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.35 and a current ratio of 1.35. The firm has a market cap of $9.70 billion, a P/E ratio of 26.04, a price-to-earnings-growth ratio of 1.43 and a beta of 0.88. The firm’s 50-day simple moving average is $92.18 and its 200-day simple moving average is $87.54.

Encompass Health (NYSE:EHC) last released its quarterly earnings data 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. The business had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.30 billion. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. Encompass Health’s quarterly revenue was up 9.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.95 earnings per share.

Encompass Health declared that its Board of Directors has initiated a share buyback plan on Wednesday, July 24th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the company to reacquire up to 5.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 15th. Investors of record on Tuesday, October 1st were given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 0.71%. The ex-dividend date was Tuesday, October 1st. This is a boost from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s payout ratio is 18.38%.

Insiders Place Their Bets

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the firm’s stock in a transaction dated Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total value of $1,058,528.40. Following the transaction, the chief financial officer now owns 136,227 shares in the company, valued at $11,761,839.18. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Several large investors have recently bought and sold shares of the business. Creative Planning raised its position in shares of Encompass Health by 4.1% during the 3rd quarter. Creative Planning now owns 19,086 shares of the company’s stock valued at $1,844,000 after acquiring an additional 743 shares during the last quarter. Oliver Luxxe Assets LLC increased its holdings in Encompass Health by 43.7% in the third quarter. Oliver Luxxe Assets LLC now owns 60,553 shares of the company’s stock valued at $5,852,000 after purchasing an additional 18,407 shares during the last quarter. CHICAGO TRUST Co NA bought a new position in Encompass Health during the third quarter worth about $221,000. Reinhart Partners LLC. grew its position in shares of Encompass Health by 2.4% during the 3rd quarter. Reinhart Partners LLC. now owns 673,040 shares of the company’s stock worth $65,043,000 after buying an additional 15,550 shares during the period. Finally, West Coast Financial LLC increased its stake in shares of Encompass Health by 1.5% in the 3rd quarter. West Coast Financial LLC now owns 47,671 shares of the company’s stock valued at $4,607,000 after acquiring an additional 697 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Encompass Health Company Profile

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.