Encompass Health Corp (NYSE: EHC)’s stock price has gone rise by 0.35 in comparison to its previous close of 94.41, however, the company has experienced a 4.05% increase in its stock price over the last five trading days. zacks.com reported 2025-01-10 that Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Is It Worth Investing in Encompass Health Corp (NYSE: EHC) Right Now?
The price-to-earnings ratio for Encompass Health Corp (NYSE: EHC) is above average at 22.87x. The 36-month beta value for EHC is also noteworthy at 0.91. There are mixed opinions on the stock, with 11 analysts rating it as a “buy,” 2 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”
The public float for EHC is 99.26M, and at present, short sellers hold a 1.36% of that float. The average trading volume of EHC on January 20, 2025 was 659.61K shares.
EHC’s Market Performance
EHC stock saw a decrease of 4.05% in the past week, with a monthly decline of -3.05% and a quarterly a decrease of -2.70%. The volatility ratio for the week is 1.65%, and the volatility levels for the last 30 days are 1.89% for Encompass Health Corp (EHC). The simple moving average for the past 20 days is 1.78% for EHC’s stock, with a 4.26% simple moving average for the past 200 days.
Analysts’ Opinion of EHC
Many brokerage firms have already submitted their reports for EHC stocks, with KeyBanc Capital Markets repeating the rating for EHC by listing it as a “Overweight.” The predicted price for EHC in the upcoming period, according to KeyBanc Capital Markets is $115 based on the research report published on October 11, 2024 of the previous year 2024.
Leerink Partners, on the other hand, stated in their research note that they expect to see EHC reach a price target of $100. The rating they have provided for EHC stocks is “Outperform” according to the report published on July 10th, 2024.
Barclays gave a rating of “Overweight” to EHC, setting the target price at $95 in the report published on March 06th of the previous year.
EHC Trading at -3.29% from the 50-Day Moving Average
After a stumble in the market that brought EHC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -9.38% of loss for the given period.
Volatility was left at 1.89%, however, over the last 30 days, the volatility rate increased by 1.65%, as shares sank -2.27% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -5.48% lower at present.
During the last 5 trading sessions, EHC rose by +4.05%, which changed the moving average for the period of 200-days by +15.54% in comparison to the 20-day moving average, which settled at $93.09. In addition, Encompass Health Corp saw 2.59% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at EHC starting from COLTHARP DOUGLAS E, who sale 12,260 shares at the price of $86.34 back on Aug 13 ’24. After this action, COLTHARP DOUGLAS E now owns 136,227 shares of Encompass Health Corp, valued at $1,058,474 using the latest closing price.
Douglas Coltharp, the Officer of Encompass Health Corp, proposed sale 12,260 shares at $86.34 during a trade that took place back on Aug 13 ’24, which means that Douglas Coltharp is holding shares at $1,058,520 based on the most recent closing price.
Stock Fundamentals for EHC
Current profitability levels for the company are sitting at:
- 0.16 for the present operating margin
- 0.22 for the gross margin
The net margin for Encompass Health Corp stands at 0.08. The total capital return value is set at 0.15. Equity return is now at value 24.53, with 6.95 for asset returns.
Based on Encompass Health Corp (EHC), the company’s capital structure generated 0.59 points at debt to capital in total, while cash flow to debt ratio is standing at 0.33. The debt to equity ratio resting at 1.43. The interest coverage ratio of the stock is 5.9.
Currently, EBITDA for the company is 1.02 billion with net debt to EBITDA at 2.36. When we switch over and look at the enterprise to sales, we see a ratio of 2.34. The receivables turnover for the company is 9.05for trailing twelve months and the total asset turnover is 0.81. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.04.
Conclusion
In summary, Encompass Health Corp (EHC) has had a mixed performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
