Encompass Health Corporation (NYSE:EHC) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Encompass Health has a consensus analyst rating of “Moderate Buy” from nine brokerages, with six buys, two holds, and one strong buy; the average 12-month price target is about $143.86.
• The company recently beat quarterly expectations, reporting $1.60 EPS on revenue of $1.59 billion, both above estimates, and it raised its FY 2026 guidance to 5.89–6.11 EPS.
• Encompass Health also announced a quarterly dividend of $0.19 per share, payable July 15, while institutional ownership remains high at 97.25%.

Encompass Health Corporation (NYSE:EHC - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the nine brokerages that are covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a hold recommendation, six have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $143.8571.

EHC has been the subject of a number of research reports. Weiss Ratings lowered shares of Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, June 26th. Barclays dropped their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 5th. Wall Street Zen upgraded Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. TD Cowen started coverage on Encompass Health in a research report on Thursday, May 28th. They set a "buy" rating and a $125.00 price objective for the company. Finally, Leerink Partners set a $152.00 target price on Encompass Health in a research report on Friday, May 22nd.

Encompass Health Price Performance

Shares of EHC opened at $106.48 on Friday. The business's 50-day moving average is $103.10 and its 200-day moving average is $103.43. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.17 and a quick ratio of 1.17. The company has a market capitalization of $10.56 billion, a price-to-earnings ratio of 17.78, a P/E/G ratio of 2.32 and a beta of 0.74. Encompass Health has a fifty-two week low of $92.77 and a fifty-two week high of $127.99.

Encompass Health (NYSE:EHC - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.60 EPS for the quarter, topping the consensus estimate of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The business had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.57 billion. During the same period last year, the company posted $1.37 earnings per share. The firm's quarterly revenue was up 9.0% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Equities research analysts expect that Encompass Health will post 5.97 EPS for the current fiscal year.

Encompass Health Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be issued a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Wednesday, July 1st. Encompass Health's payout ratio is currently 12.69%.

Insider Buying and Selling

In related news, EVP Patrick William Tuer sold 682 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $104.56, for a total value of $71,309.92. Following the transaction, the executive vice president owned 24,755 shares in the company, valued at approximately $2,588,382.80. This represents a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 1.80% of the company's stock.

Institutional Trading of Encompass Health

Several large investors have recently added to or reduced their stakes in EHC. EP Wealth Advisors LLC raised its holdings in shares of Encompass Health by 2.4% during the 2nd quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company's stock valued at $453,000 after purchasing an additional 88 shares in the last quarter. Allworth Financial LP increased its position in Encompass Health by 14.7% during the third quarter. Allworth Financial LP now owns 701 shares of the company's stock worth $89,000 after buying an additional 90 shares during the last quarter. Gamco Investors INC. ET AL increased its position in Encompass Health by 2.0% during the first quarter. Gamco Investors INC. ET AL now owns 4,813 shares of the company's stock worth $466,000 after buying an additional 94 shares during the last quarter. Gibson Capital LLC raised its holdings in Encompass Health by 4.3% during the first quarter. Gibson Capital LLC now owns 2,431 shares of the company's stock valued at $235,000 after buying an additional 101 shares in the last quarter. Finally, Leuthold Group LLC lifted its position in shares of Encompass Health by 0.3% in the fourth quarter. Leuthold Group LLC now owns 31,168 shares of the company's stock worth $3,308,000 after buying an additional 104 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

About Encompass Health

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.

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