Encompass Health (NYSE:EHC) Stock Rating Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Encompass Health to “Hold” from “Buy,” though the broader analyst consensus remains “Buy” with an average price target of $148.50.
• Encompass Health reported quarterly earnings of $1.55 per share, beating estimates by $0.07, while revenue rose 9.6% year over year to $1.60 billion.
• Company insiders sold approximately $23.4 million worth of shares during the past quarter, while institutional investors own 97.25% of the stock.

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

Other analysts have also issued reports about the stock. Truist Financial upped their price target on shares of Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Weiss Ratings raised Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Raymond James Financial set a $150.00 price objective on Encompass Health in a report on Monday, September 28th. Barclays boosted their target price on Encompass Health from $140.00 to $144.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Finally, TD Cowen increased their target price on Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a report on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Encompass Health currently has a consensus rating of "Buy" and an average target price of $148.50.

Encompass Health Trading Down 0.1%

EHC stock opened at $127.69 on Friday. The company has a market capitalization of $12.60 billion, a PE ratio of 20.80, a price-to-earnings-growth ratio of 2.59 and a beta of 0.74. Encompass Health has a one year low of $92.77 and a one year high of $129.96. The company's 50 day moving average price is $122.51 and its two-hundred day moving average price is $111.56. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19.

Encompass Health (NYSE:EHC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, topping analysts' consensus estimates 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 period in the previous year, the business posted $1.40 EPS. The business'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. As a group, analysts predict that Encompass Health will post 6.08 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of the firm's stock in a transaction on Monday, August 10th. The shares were 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 of the company's stock, valued at $33,602,622.58. This trade represents a 39.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP John Darby sold 4,858 shares of the company's 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 transaction, the executive vice president directly owned 75,041 shares of the company's stock, valued at approximately $9,086,714.69. This trade represents a 6.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 186,912 shares of company stock valued at $23,434,845 over the last quarter. 1.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Transamerica Financial Advisors LLC bought a new position in Encompass Health during the 2nd quarter valued at approximately $29,000. Persistent Asset Partners Ltd bought a new stake in shares of Encompass Health in the 2nd quarter worth approximately $36,000. Toth Financial Advisory Corp purchased a new position in shares of Encompass Health during the third quarter valued at approximately $38,000. Keating Financial Advisory Services Inc. purchased a new position in shares of Encompass Health during the second quarter valued at approximately $39,000. Finally, Assetmark Inc. raised its holdings in shares of Encompass Health by 89.6% during the first quarter. Assetmark Inc. now owns 455 shares of the company's stock valued at $44,000 after acquiring an additional 215 shares in the last quarter. Hedge funds and other institutional investors own 97.25% of the company's stock.

Encompass Health Company Profile

Encompass Health Corporation NYSE: EHC is a healthcare services company focused on inpatient rehabilitation. Through its network of rehabilitation hospitals, the company provides intensive medical and therapeutic care to patients recovering from conditions such as strokes, brain and spinal cord injuries, hip fractures, amputations, neurological disorders, and other disabling illnesses or injuries.

Its rehabilitation hospitals offer coordinated care from physicians, nurses, therapists, and other healthcare professionals.

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