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 broadly positive analyst consensus. The stock has an average rating of “Buy” and an average price target of $154.14.
• Encompass Health reported better-than-expected third-quarter results, with EPS of $1.52 versus the $1.36 consensus and revenue of $1.61 billion, up 8.9% year over year. Management also raised its full-year 2026 adjusted EPS guidance to $6.23–$6.37.
• The shares were trading near a 52-week high at $136.09, while recent insider activity showed substantial selling: insiders sold approximately $23.4 million of stock 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 on Saturday, Wall Street Zen reports.

Several other equities analysts have also recently issued reports on EHC. Raymond James Financial restated a "strong-buy" rating and issued a $155.00 price target on shares of Encompass Health in a research report on Friday. KeyCorp increased their price objective on Encompass Health from $147.00 to $150.00 and gave the stock an "overweight" rating in a research report on Friday. UBS Group reiterated a "buy" rating and issued a $165.00 target price on shares of Encompass Health in a research note on Friday. Truist Financial reissued a "buy" rating and issued a $156.00 target price (up from $150.00) on shares of Encompass Health in a report on Friday. Finally, Weiss Ratings raised Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Encompass Health currently has an average rating of "Buy" and an average target price of $154.14.

Encompass Health Trading Up 3.5%

NYSE EHC opened at $136.09 on Friday. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.19 and a current ratio of 1.09. The firm has a market cap of $13.43 billion, a PE ratio of 21.26, a P/E/G ratio of 2.58 and a beta of 0.74. Encompass Health has a one year low of $92.77 and a one year high of $137.27. The firm's fifty day moving average is $122.89 and its two-hundred day moving average is $109.98.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Wednesday, October 28th. The company reported $1.52 EPS for the quarter, beating analysts' consensus estimates of $1.36 by $0.16. Encompass Health had a net margin of 10.17% and a return on equity of 18.35%. The business had revenue of $1.61 billion during the quarter, compared to analysts' expectations of $1.60 billion. During the same period in the prior year, the company earned $1.23 earnings per share. The business's revenue was up 8.9% compared to the same quarter last year. Analysts expect that Encompass Health will post 6.29 earnings per share for the current year.

Insider Activity

In related news, EVP John Darby sold 4,858 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $121.09, for a total transaction of $588,255.22. Following the completion of the transaction, the executive vice president directly owned 75,041 shares of the company's stock, valued at $9,086,714.69. This represents a 6.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Mark J. Tarr sold 173,148 shares of the firm's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the completion of the sale, the chief executive officer owned 267,814 shares of the company's stock, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 186,912 shares of company stock worth $23,434,845. Insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Encompass Health

Several institutional investors and hedge funds have recently added to or reduced their stakes in EHC. Gamco Investors INC. ET AL boosted its position in shares of Encompass Health by 2.0% during the 1st quarter. Gamco Investors INC. ET AL now owns 4,813 shares of the company's stock valued at $466,000 after purchasing an additional 94 shares in the last quarter. GAMMA Investing LLC grew its stake in shares of Encompass Health by 2.7% in the 2nd quarter. GAMMA Investing LLC now owns 3,969 shares of the company's stock worth $401,000 after purchasing an additional 106 shares during the last quarter. Childress Capital Advisors LLC raised its holdings in shares of Encompass Health by 5.1% in the 3rd quarter. Childress Capital Advisors LLC now owns 2,189 shares of the company's stock worth $266,000 after purchasing an additional 106 shares in the last quarter. Versant Capital Management Inc raised its holdings in shares of Encompass Health by 21.8% in the 2nd quarter. Versant Capital Management Inc now owns 720 shares of the company's stock worth $73,000 after purchasing an additional 129 shares in the last quarter. Finally, QRG Capital Management Inc. lifted its stake in Encompass Health by 1.5% during the first quarter. QRG Capital Management Inc. now owns 8,639 shares of the company's stock valued at $836,000 after purchasing an additional 130 shares during the last quarter. Institutional investors and hedge funds own 97.25% of the company's stock.

Encompass Health News Roundup

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Q3 results exceeded expectations: Encompass Health reported adjusted earnings of $1.52 per share, above the $1.36 consensus estimate and up from $1.23 a year earlier. Revenue rose 8.9% year over year to $1.61 billion, while adjusted EBITDA increased 15.5% to $346.6 million. Encompass Health Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 adjusted EPS of $6.23 to $6.37, above the prior range of $6.02 to $6.25 and higher than the $6.11 analyst consensus. Revenue guidance remains approximately $6.5 billion. Encompass Health Climbs After Q3 Results Top Expectations and Guidance Is Raised
• Positive Sentiment: Patient-care metrics remained healthy: Quarterly discharges increased 5.7%, same-store discharges rose 3.0%, and net patient revenue per discharge improved 4.0%, supporting the view that demand for inpatient rehabilitation services remains strong. Encompass Health Q3 2026 Earnings Call Transcript
• Positive Sentiment: TD Cowen became more bullish: The firm raised its price target from $140 to $150 and assigned a “Buy” rating, implying further upside based on the referenced share price. TD Cowen Raises Encompass Health Price Target
• Neutral Sentiment: Valuation commentary was favorable: Zacks identified EHC as a strong value stock, although the report appears to be based primarily on its quantitative Style Scores rather than a new fundamental development. Why Encompass Health Is a Strong Value Stock
• Negative Sentiment: Insider selling is a watchpoint: Recent data shows company insiders made no open-market purchases and sold shares during the past six months. These transactions may reflect diversification or planned selling, but they provide a modest counterpoint to the otherwise positive earnings news. Encompass Health Insider Trading and Earnings Analysis

About Encompass Health

Encompass Health Corporation NYSE: EHC is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company's services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.

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