Encompass Health Corporation (NYSE: EHC) stock fell -0.90% on Friday to $52.87 against a previous-day closing price of $53.35. With 1.73 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.0 million shares. During the session, the Medical Care Facilities company that operates in wider Healthcare sector, reached to the highest price of $53.50 whereas the lowest price it dropped to was $52.64. The 52-week range on EHC shows that it touched its highest point at $66.91 and its lowest point at $42.16 during that stretch. It currently has a 1-year price target of $75.15. With its current market cap of 5.15 billion, EHC has annualized dividend of $0.60 while the current yield stands at 1.13%. Beta for the stock currently stands at 1.03.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EHC was up-trending over the past week, with a rise of 5.85%, but this was up by 11.07% over a month. Three-month performance dropped to -2.93% while six-month performance rose 5.55%. The stock lost -20.20% in the past year, while it has gained 1.89% so far this year. A look at the trailing 12-month EPS for EHC yields 3.92 with Next year EPS estimates of 4.43. For the next quarter, that number is 0.97. This implies an EPS growth rate of 44.60% for this year and 11.63% for next year. EPS is expected to grow by 13.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.60%.
Float and Shares Shorts:
At present, 99.20 million EHC shares are outstanding with a float of 97.77 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.28 million, which was 2.28% higher than short shares on Jun 14, 2022. In addition to Mr. Mark J. Tarr as the firm’s CEO, Pres & Director, Mr. Douglas E. Coltharp serves as its Exec. VP & CFO.
Through their ownership of 97.63% of EHC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.25% of EHC, in contrast to 45.48% held by mutual funds. Shares owned by individuals account for 2.20%. As the largest shareholder in EHC with 9.27% of the stake, The Vanguard Group, Inc. holds 9,246,887 shares worth 9,246,887. A second-largest stockholder of EHC, Wellington Management Co. LLP, holds 8,852,989 shares, controlling over 8.87% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in EHC, holding 8,104,019 shares or 8.12% stake. With a 2.95% stake in EHC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,946,213 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.89% of EHC stock, is the second-largest Mutual Fund holder. It holds 2,882,135 shares valued at 161.54 million. Vanguard Small Cap Index Fund holds 2.53% of the stake in EHC, owning 2,522,132 shares worth 141.37 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EHC since 13 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With EHC analysts setting a high price target of $82.00 and a low target of $59.00, the average target price over the next 12 months is $66.58. Based on these targets, EHC could surge 55.1% to reach the target high and rise by 11.59% to reach the target low. Reaching the average price target will result in a growth of 25.93% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. EHC will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $4.14 being high and $2.21 being low. For EHC, this leads to a yearly average estimate of $3.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Encompass Health Corporation surprised analysts by -$0.07 when it reported $0.89 EPS against a consensus estimate of $0.96. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $1.06 and the low estimate is $0.23. The average estimate for the next quarter is thus $0.78.
Summary of Insider Activity:
Insiders traded EHC stock several times over the past three months with 21 Buys and 0 Sells. In these transactions, 25,038 shares were bought while 0 shares were sold. The number of buy transactions has increased to 96 while that of sell transactions has risen to 24 over the past year. The total number of shares bought during that period was 287,444 while 173,905 shares were sold.