Encompass Health Corporation (NYSE:EHC) Stock Rated "Buy" by Sell-Side Brokerages

Key Points

• Analysts are broadly bullish: Seven analysts give Encompass Health an average “Buy” rating, with five buys, one strong buy, and one hold. The average 12-month price target is $148.50 versus a recent share price of $123.33.
• Quarterly results exceeded expectations: Encompass Health reported earnings of $1.55 per share versus the $1.48 consensus estimate, while revenue rose 9.6% year over year to $1.60 billion.
• The company raised its dividend: The quarterly payout increased from $0.19 to $0.21 per share, equivalent to an annualized $0.84 dividend and a 0.7% yield. Meanwhile, insiders sold approximately $23.4 million of stock over the past three months.

Shares of Encompass Health Corporation (NYSE:EHC - Get Free Report) have received an average rating of "Buy" from the seven analysts that are currently covering the firm, MarketBeat reports. One research analyst has rated the stock with a hold recommendation, five have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $148.50.

A number of equities research analysts have issued reports on EHC shares. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, September 26th. TD Cowen lifted their price target on Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Raymond James Financial set a $150.00 price target on Encompass Health in a research report on Monday, September 28th. UBS Group boosted their price objective on Encompass Health from $150.00 to $155.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Finally, Barclays increased their price objective on Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th.

Encompass Health Trading Up 0.0%

Shares of Encompass Health stock opened at $123.33 on Monday. The stock has a market capitalization of $12.17 billion, a P/E ratio of 20.09, a P/E/G ratio of 2.50 and a beta of 0.74. Encompass Health has a 52-week low of $92.77 and a 52-week high of $127.99. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. The stock's 50-day simple moving average is $121.57 and its 200 day simple moving average is $110.67.

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

Encompass Health Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be given a dividend of $0.21 per share. This is a boost from Encompass Health's previous quarterly dividend of $0.19. This represents a $0.84 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, October 1st. Encompass Health's dividend payout ratio (DPR) is currently 13.68%.

Insider Transactions at Encompass Health

In other news, EVP John Darby sold 4,858 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $121.09, for a total value of $588,255.22. Following the completion of the transaction, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,086,714.69. This trade represents a 6.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Mark Tarr sold 173,148 shares of the business's stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 267,814 shares of the company's stock, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 186,912 shares of company stock worth $23,434,845. Insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of EHC. Gamco Investors INC. ET AL boosted its holdings in shares of Encompass Health by 2.0% in the 1st quarter. Gamco Investors INC. ET AL now owns 4,813 shares of the company's stock worth $466,000 after purchasing an additional 94 shares in the last quarter. Gibson Capital LLC increased its position in shares of Encompass Health by 4.3% during the 1st quarter. Gibson Capital LLC now owns 2,431 shares of the company's stock valued at $235,000 after purchasing an additional 101 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Encompass Health by 2.7% during the 2nd quarter. GAMMA Investing LLC now owns 3,969 shares of the company's stock valued at $401,000 after buying an additional 106 shares in the last quarter. Versant Capital Management Inc raised its holdings in shares of Encompass Health by 21.8% during the 2nd quarter. Versant Capital Management Inc now owns 720 shares of the company's stock valued at $73,000 after buying an additional 129 shares in the last quarter. Finally, QRG Capital Management Inc. lifted its position in Encompass Health by 1.5% in the 1st quarter. QRG Capital Management Inc. now owns 8,639 shares of the company's stock worth $836,000 after buying an additional 130 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

About Encompass Health

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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