KeyCorp Comments on Encompass Health Co.’s FY2024 Earnings (NYSE:EHC)

Encompass Health Co. (NYSE:EHC) – Investment analysts at KeyCorp issued their FY2024 earnings estimates for Encompass Health in a report issued on Thursday, October 10th. KeyCorp analyst M. Gillmor expects 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 research firms have also weighed in on EHC. Leerink Partnrs raised Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. UBS Group lifted their price objective on Encompass Health from $100.00 to $110.00 and gave the stock a “buy” rating in a report on Wednesday, September 25th. Stephens reiterated an “overweight” rating and issued a $105.00 price target on shares of Encompass Health in a report on Tuesday, August 6th. Leerink Partners assumed coverage on Encompass Health in a research report on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective for the company. Finally, Royal Bank of Canada boosted their price target on Encompass Health from $95.00 to $105.00 and gave the stock an “outperform” rating in a research report on Thursday, September 26th. Eight research analysts have rated the stock with a buy rating and three have given a strong buy rating to the company. According to data from MarketBeat.com, Encompass Health currently has a consensus rating of “Buy” and a consensus target price of $104.22.

Encompass Health Trading Up 2.6 %

Encompass Health stock opened at $95.97 on Monday. The stock has a market cap of $9.66 billion, a PE ratio of 25.94, a P/E/G ratio of 1.43 and a beta of 0.88. The stock has a 50-day moving average price of $91.81 and a 200 day moving average price of $87.35. Encompass Health has a 52 week low of $57.55 and a 52 week high of $97.56. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 1.08.

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, topping the consensus estimate of $1.01 by $0.10. Encompass Health had a return on equity of 17.83% and a net margin of 7.88%. The firm had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the prior year, the business posted $0.95 earnings per share. Encompass Health’s revenue was up 9.6% compared to the same quarter last year.

Institutional Investors Weigh In On Encompass Health

Institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. grew its holdings in shares of Encompass Health by 379.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 578,349 shares of the company’s stock worth $38,587,000 after purchasing an additional 457,796 shares during the last quarter. Wellington Management Group LLP raised its position in shares of Encompass Health by 5.8% in the 4th quarter. Wellington Management Group LLP now owns 8,215,770 shares of the company’s stock worth $548,156,000 after purchasing an additional 449,230 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Encompass Health by 4.7% in the 4th quarter. Vanguard Group Inc. now owns 9,997,034 shares of the company’s stock worth $667,002,000 after purchasing an additional 450,081 shares during the last quarter. Reinhart Partners LLC. raised its position in Encompass Health by 0.6% in the 1st quarter. Reinhart Partners LLC. now owns 736,804 shares of the company’s stock worth $60,845,000 after buying an additional 4,409 shares during the last quarter. Finally, CWM LLC raised its position in Encompass Health by 5.7% in the 1st quarter. CWM LLC now owns 6,009 shares of the company’s stock worth $496,000 after buying an additional 326 shares during the last quarter. 97.25% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Encompass Health

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

Encompass Health declared that its board has authorized a stock buyback program on Wednesday, July 24th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its stock is undervalued.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Tuesday, October 1st will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.71%. The ex-dividend date is Tuesday, October 1st. This is a boost from Encompass Health’s previous quarterly dividend of $0.15. Encompass Health’s payout ratio is currently 18.38%.

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.