Encompass Health (NYSE:EHC) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Encompass Health from “Buy” to “Hold,” although the broader analyst consensus remains “Buy” with an average price target of $148.71.
• Encompass Health exceeded quarterly expectations, reporting $1.55 in EPS and $1.60 billion in revenue, with revenue up 9.6% year over year. Management provided fiscal 2026 EPS guidance of $6.02–$6.25.
• Company insiders sold 186,912 shares worth approximately $23.4 million during the last quarter, including substantial sales by the CEO and an executive vice president.

Encompass Health (NYSE:EHC - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also recently commented on the stock. Weiss Ratings raised shares of Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, August 12th. Barclays upped their target price on Encompass Health from $140.00 to $144.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Truist Financial lifted their price target on Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a report on Friday, August 7th. UBS Group boosted their price objective on Encompass Health from $150.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Finally, Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, Encompass Health presently has an average rating of "Buy" and a consensus price target of $148.71.

Encompass Health Price Performance

Shares of NYSE:EHC opened at $121.80 on Friday. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. The stock has a market cap of $12.02 billion, a PE ratio of 19.84, a price-to-earnings-growth ratio of 2.48 and a beta of 0.75. The stock's fifty day simple moving average is $115.33 and its two-hundred day simple moving average is $107.58. Encompass Health has a 1-year low of $92.77 and a 1-year high of $127.99.

Encompass Health (NYSE:EHC - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same quarter in the prior year, the business posted $1.40 EPS. The business's revenue was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, analysts forecast that Encompass Health will post 6.08 EPS for the current fiscal year.

Insider Buying and Selling at Encompass Health

In related news, CEO Mark Tarr sold 173,148 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the transaction, the chief executive officer directly owned 267,814 shares of the company's stock, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP John Darby sold 8,906 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.95, for a total value of $1,121,710.70. Following the completion of the sale, the executive vice president directly owned 75,041 shares of the company's stock, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 186,912 shares of company stock valued at $23,434,845 over the last quarter. 1.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Transamerica Financial Advisors LLC purchased a new stake in Encompass Health during the 2nd quarter valued at about $29,000. Persistent Asset Partners Ltd bought a new stake in Encompass Health in the second quarter valued at approximately $36,000. Caitong International Asset Management Co. Ltd grew its holdings in shares of Encompass Health by 36,200.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company's stock worth $46,000 after purchasing an additional 362 shares during the last quarter. Keating Financial Advisory Services Inc. purchased a new position in shares of Encompass Health in the second quarter worth $39,000. Finally, Assetmark Inc. raised its holdings in Encompass Health by 89.6% during the 1st quarter. Assetmark Inc. now owns 455 shares of the company's stock valued at $44,000 after buying an additional 215 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

About Encompass Health

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.

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