Encompass Health Co. (NYSE:EHC) Sees Significant Drop in Short Interest

Encompass Health Co. (NYSE:EHC) was the recipient of a significant decline in short interest in August. As of August 31st, there was short interest totalling 1,290,000 shares, a decline of 15.7% from the August 15th total of 1,530,000 shares. Approximately 1.3% of the shares of the stock are short sold. Based on an average daily trading volume, of 645,700 shares, the days-to-cover ratio is presently 2.0 days.

Wall Street Analysts Forecast Growth

EHC has been the subject of a number of recent research reports. Leerink Partnrs upgraded Encompass Health to a “strong-buy” rating in a research note on Wednesday, July 10th. Barclays lowered their target price on Encompass Health from $113.00 to $109.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 6th. Royal Bank of Canada raised their target price on Encompass Health from $83.00 to $95.00 and gave the company an “outperform” rating in a research report on Wednesday, May 22nd. UBS Group lifted their price target on Encompass Health from $96.00 to $100.00 and gave the company a “buy” rating in a research report on Thursday, August 8th. Finally, Stephens reiterated an “overweight” rating and set a $105.00 price target on shares of Encompass Health in a research report on Tuesday, August 6th. Nine investment analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of “Buy” and an average target price of $100.38.

Encompass Health Stock Up 0.6 %

Shares of Encompass Health stock traded up $0.53 during midday trading on Monday, hitting $93.78. The company’s stock had a trading volume of 137,433 shares, compared to its average volume of 630,309. The firm has a market capitalization of $9.44 billion, a P/E ratio of 25.36, a PEG ratio of 1.39 and a beta of 0.88. The stock has a 50-day simple moving average of $89.30 and a 200-day simple moving average of $84.77. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 1.08. Encompass Health has a 1-year low of $57.55 and a 1-year high of $94.59.

Encompass Health (NYSE:EHC) last issued its earnings results on Monday, August 5th. The company reported $1.11 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 business had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter last year, the firm posted $0.95 earnings per share. Encompass Health’s revenue was up 9.6% compared to the same quarter last year. As a group, sell-side analysts expect that Encompass Health will post 4.18 earnings per share for the current year.

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Shareholders of record on Tuesday, October 1st will be issued a dividend of $0.17 per share. This is a positive change from Encompass Health’s previous quarterly dividend of $0.15. This represents a $0.68 annualized dividend and a yield of 0.73%. The ex-dividend date of this dividend is Tuesday, October 1st. Encompass Health’s dividend payout ratio (DPR) is 18.38%.

Insider Activity at Encompass Health

In other Encompass Health news, CFO Douglas E. Coltharp sold 12,260 shares of the business’s stock in a transaction on Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the sale, the chief financial officer now directly owns 136,227 shares in the company, valued at $11,761,839.18. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Institutional investors have recently made changes to their positions in the business. Trillium Asset Management LLC acquired a new stake in Encompass Health during the first quarter worth about $4,432,000. TD Asset Management Inc raised its position in Encompass Health by 16.0% in the 1st quarter. TD Asset Management Inc now owns 2,283,674 shares of the company’s stock worth $188,586,000 after purchasing an additional 314,488 shares during the last quarter. Harbor Capital Advisors Inc. raised its position in shares of Encompass Health by 275.7% during the 2nd quarter. Harbor Capital Advisors Inc. now owns 35,799 shares of the company’s stock valued at $3,071,000 after acquiring an additional 26,270 shares during the last quarter. Epoch Investment Partners Inc. raised its position in shares of Encompass Health by 102.9% during the 4th quarter. Epoch Investment Partners Inc. now owns 1,399,341 shares of the company’s stock valued at $93,364,000 after acquiring an additional 709,593 shares during the last quarter. Finally, QRG Capital Management Inc. boosted its stake in Encompass Health by 85.6% in the 2nd quarter. QRG Capital Management Inc. now owns 14,365 shares of the company’s stock worth $1,232,000 after purchasing an additional 6,627 shares during the period. 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.