Is Wall Street High Or Low On Encompass Health Corporation (EHC)?

Encompass Health Corporation (NYSE:EHC) finished Friday with a subtraction of -$0.18 to close at $70.65, a downside of -0.25 percent. An average of 598,340 shares of common stock have been traded in the last five days. There was a gain of $3.03 in the past week, and it reached a new high 15 times over the past 12 months. The last 20 days have seen an average of 624,690 shares traded, while the 50-day average volume stands at 580,696.

EHC stock has decreased by -7.47% in the last month. The company shares reached their 1-month lowest point of $66.28 on 10/18/21. With the stock rallying to its 52-week high on 04/23/21, shares of the company touched a low of $60.51 and a high of $89.68 in 52 weeks. It has reached a new high 8 times so far this year and lost -14.56% or -$12.04 in price. In spite of this, the price is down -21.22% from the 52-week high.

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Insider Transactions

229 days have passed since Encompass Health Corporation (EHC) last reported insider trading activity. Price Andrew L, who is Chief Accounting Officer, most recently acquired $8,589 shares at $81.40 per share on Mar 08. In this transaction, the insider spent $699,145. Chief Medical Officer, Charbonneau Elissa Joy, disposed of 6,650 shares at a price of $75.22 on Nov 17. The insider now owns more than $500,213 worth of shares.

Valuation Metrics

Encompass Health Corporation (EHC) has a trailing price-to-earnings (P/E) ratio of 18.39, which compares with the 23.70 for the broader industry and 33.43 for the sector. In the last five years, Encompass Health Corporation’s PE ratio has ranged between 32.19 and 13.87. The stock’s beta is 1.08. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.42, the price-to-book (PB) ratio at 3.97, and the price-to-cash flow ratio at 22.27.

Encompass Health Corporation pays a $1.12 dividend per share annually. It offers a dividend yield of 1.59%. The company has a payout ratio of 28.90%. The company’s most recent quarterly dividend payment was $0.28 a share, without any change from last year. Its latest increase dividend $0.01 reported on Tuesday July 23 2019.Dividends have grown by 14.29% each year over the last three years.

The quick ratio of Encompass Health Corporation for the three months ended June 29 was 1.10, and the current ratio was 1.10, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.76 and a total debt to equity ratio of 1.80 for the quarter ending June 29. Encompass Health Corporation’s EBITDA margin for the year ending June 29 is 19.18%, while its operating margin for the same period stands at 16.10%. Its gross profit as reported stood at $4.0 billion compared to revenue of $4.64 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Encompass Health Corporation’s return on assets was 5.80%. For the broader industry, ROE averaged 9.65 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Encompass Health Corporation had $3.11 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $113.3 million in the quarter, while revenues were grew 70.43%. The analyst consensus anticipated Encompass Health Corporation’s latest quarter earnings to come in at $0.97 per share, but it turned out to be $1.17, a 20.60% surprise. For the quarter, EBITDA amounted to $281.4 million. Shareholders own equity worth $99.5 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Encompass Health Corporation (EHC) price momentum. RSI 9-day as of the close on 22 October was 50.69%, suggesting the stock is Neutral, with historical volatility in this time frame at 19.52%.

As of today, EHC’s price is $69.32 +4.48% or $3.03 from its 5-day moving average. EHC is currently trading -8.26% lower than its 20-day SMA and -15.56% lower than its 100-day SMA. However, the stock’s current price level is -9.45% below the SMA50 and -17.85% below the SMA200.

The stochastic %K and %D were 45.71% and 32.72%, respectively, and the average true range (ATR) was 1.52. With the 14-day stochastic at 55.18% and the average true range at 1.53, the RSI (14) stands at 43.77%. The stock has reached 1.71 on the 9-day MACD Oscillator while the 14-day reading was at 0.79.

Analyst Ratings

UBS launched coverage on Encompass Health Corporation (NYSE: EHC) in its analyst report released on September 24, 2021. The firm assigned the stock a a Buy rating. The consensus rating for Encompass Health Corporation (EHC) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell EHC, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 12 others rate it as a “buy”.

What is EHC’s price target for the next 12 months?

Analysts predict a range of price targets between $88.00 and $110.00, with a median target of $98.00. Taking a look at these predictions, the average price target given by analysts for Encompass Health Corporation (EHC) stock is $98.58.


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