TD Cowen Forecasts Strong Price Appreciation for Encompass Health (NYSE:EHC) Stock

Key Points

• TD Cowen raised Encompass Health’s price target from $140 to $150 while maintaining a “Buy” rating, implying roughly 10.4% upside. The broader analyst consensus is also “Buy,” with an average target of $153.43.
• Encompass Health’s latest quarter exceeded expectations, with EPS of $1.52 versus the $1.36 consensus and revenue up 8.9% year over year to $1.61 billion. Management also raised its full-year 2026 EPS outlook to $6.23–$6.37.
• The stock rose 3.3% to $135.84, supported by strong operating trends including 15.5% adjusted EBITDA growth and higher patient discharges. However, insiders sold about $23.4 million of shares over the past 90 days.

Encompass Health (NYSE:EHC - Get Free Report) had its target price hoisted by research analysts at TD Cowen from $140.00 to $150.00 in a note issued to investors on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. TD Cowen's price target points to a potential upside of 10.43% from the stock's previous close.

EHC has been the subject of several other research reports. Weiss Ratings upgraded shares of Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. UBS Group reaffirmed a "buy" rating and set a $165.00 price target on shares of Encompass Health in a research report on Friday. Wall Street Zen lowered Encompass Health from a "buy" rating to a "hold" rating in a report on Saturday, October 17th. KeyCorp raised 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. Finally, Barclays boosted their target price on Encompass Health from $144.00 to $151.00 and gave the stock an "overweight" rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $153.43.

Encompass Health Trading Up 3.3%

Shares of NYSE EHC traded up $4.34 during trading hours on Friday, hitting $135.84. 928,090 shares of the company traded hands, compared to its average volume of 1,048,685. The company's 50 day moving average price is $122.58 and its 200 day moving average price is $109.81. The stock has a market capitalization of $13.40 billion, a price-to-earnings ratio of 21.26, a price-to-earnings-growth ratio of 2.47 and a beta of 0.74. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. Encompass Health has a 12 month low of $92.77 and a 12 month high of $137.27.

Encompass Health (NYSE:EHC - Get Free Report) last issued its earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share for the quarter, beating analysts' consensus estimates of $1.36 by $0.16. Encompass Health had a return on equity of 18.62% and a net margin of 10.17%. The business had revenue of $1.61 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same period in the previous year, the company posted $1.23 EPS. Encompass Health's revenue was up 8.9% on a year-over-year basis. On average, equities research analysts anticipate that Encompass Health will post 6.08 earnings per share for the current fiscal year.

Insider Activity at Encompass Health

In other news, CEO Mark Tarr sold 173,148 shares of the company'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 directly owned 267,814 shares of the company's stock, valued at $33,602,622.58. This represents a 39.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP John Darby sold 4,858 shares of the business's stock in a transaction on 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 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 disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 186,912 shares of company stock valued at $23,434,845. Company insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of EHC. Ancora Advisors LLC purchased a new stake in Encompass Health during the 2nd quarter valued at about $10,639,000. Canada Pension Plan Investment Board purchased a new position in Encompass Health in the 2nd quarter worth approximately $7,723,000. VELA Investment Management LLC boosted its holdings in shares of Encompass Health by 53.6% during the 2nd quarter. VELA Investment Management LLC now owns 48,991 shares of the company's stock worth $4,952,000 after purchasing an additional 17,105 shares during the last quarter. Oppenheimer Asset Management Inc. purchased a new stake in shares of Encompass Health in the second quarter valued at approximately $2,620,000. Finally, Deutsche Bank AG purchased a new stake in shares of Encompass Health in the second quarter valued at approximately $1,285,000. 97.25% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Encompass Health

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

• Positive Sentiment: Q3 results topped expectations: Encompass Health reported adjusted EPS of $1.52, up from $1.23 a year earlier and above the $1.36-$1.38 analyst consensus range. Revenue rose 8.9% year over year to $1.61 billion, slightly exceeding estimates. Encompass Health reports results for third quarter 2026
• Positive Sentiment: Full-year outlook was raised: Management now expects FY 2026 EPS of $6.23 to $6.37, above the prior $6.02 to $6.25 range and the $6.11 consensus estimate. Revenue guidance remains approximately $6.5 billion, in line with expectations. Encompass Health climbs after Q3 results top expectations and guidance is raised
• Positive Sentiment: Operating trends remained healthy: Adjusted EBITDA increased 15.5% to $346.6 million, discharges grew 5.7%, same-store discharges rose 3.0%, and net patient revenue per discharge increased 4.0%. The figures suggest continued demand for inpatient rehabilitation services. Why Encompass Health stock is up today
• Positive Sentiment: Value-stock interest may provide additional support: A Zacks analysis characterized EHC as a strong value stock based on its Style Scores, potentially attracting investors seeking market-beating value opportunities. Why Encompass Health is a Strong Value Stock

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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