Encompass Health (NYSE:EHC) Stock Lifted to Buy by Wall Street Zen

Key Points

• Wall Street Zen upgraded Encompass Health to “buy” from “hold,” joining a broader positive analyst consensus. The stock has an average “Buy” rating and an average price target of $148.20.
• Encompass Health reported quarterly EPS of $1.55, exceeding estimates of $1.48, while revenue rose 9.6% year over year to $1.60 billion. The company provided fiscal 2026 EPS guidance of $6.02–$6.25.
• Institutional ownership remains high at 97.25%, with BlackRock acquiring a stake valued at roughly $1.06 billion, although company insiders sold $23.4 million of shares over the past 90 days.

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

Other equities research analysts also recently issued research reports about the company. Weiss Ratings raised Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, August 12th. UBS Group increased their target price on shares of Encompass Health from $150.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. TD Cowen lifted their price target on shares of Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Barclays lifted their target price on shares of Encompass Health from $140.00 to $144.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Finally, Truist Financial upped their target price on Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $148.20.

Encompass Health Stock Up 1.2%

EHC opened at $123.53 on Friday. Encompass Health has a 12 month low of $92.77 and a 12 month high of $127.99. The business has a 50-day moving average of $119.62 and a two-hundred day moving average of $109.11. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. The stock has a market capitalization of $12.19 billion, a price-to-earnings ratio of 20.12, a price-to-earnings-growth ratio of 2.47 and a beta of 0.75.

Encompass Health (NYSE:EHC - Get Free Report) last released 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 business had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.57 billion. During the same period last year, the company earned $1.40 earnings per share. The company's quarterly revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, research analysts expect that Encompass Health will post 6.08 earnings per share for the current year.

Insider Activity

In other news, 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 transaction of $1,121,710.70. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.47, for a total value of $21,724,879.56. Following the sale, the chief executive officer owned 267,814 shares in the company, valued at $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 186,912 shares of company stock valued at $23,434,845 over the last ninety days. Company insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of Encompass Health in the second quarter valued at approximately $1,059,762,000. Geode Capital Management LLC grew its holdings in Encompass Health by 7.6% in the 4th quarter. Geode Capital Management LLC now owns 1,946,134 shares of the company's stock worth $206,605,000 after buying an additional 137,892 shares in the last quarter. Dimensional Fund Advisors LP increased its position in Encompass Health by 3.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,674,784 shares of the company's stock valued at $162,013,000 after acquiring an additional 50,647 shares during the period. Norges Bank bought a new stake in Encompass Health during the 4th quarter valued at $133,221,000. Finally, Arrowstreet Capital Limited Partnership raised its stake in Encompass Health by 9.0% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,163,834 shares of the company's stock valued at $123,529,000 after acquiring an additional 96,445 shares in the last quarter. 97.25% of the stock is currently owned by institutional investors.

Encompass Health Company Profile

Encompass Health Corporation NYSE: EHC is a provider of post-acute healthcare services in the United States. The company operates inpatient rehabilitation hospitals that care for patients recovering from illness, injury, surgery or other medical conditions requiring intensive rehabilitation.

Its rehabilitation programs commonly serve patients recovering from strokes, brain and spinal cord injuries, neurological disorders, cardiac and pulmonary conditions, hip fractures, amputations and other orthopedic conditions.

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