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

Key Points

• Analysts remain broadly positive: Encompass Health has a “Moderate Buy” consensus from nine brokerages, with an average 12-month price target of $143.86 versus the reported share price of $116.08.
• The company exceeded quarterly expectations, reporting $1.60 in earnings per share and $1.59 billion in revenue, while revenue grew 9% year over year. Management’s fiscal 2026 EPS guidance is $5.89–$6.11.
• Encompass Health raised its quarterly dividend from $0.19 to $0.21 per share, equal to an annualized $0.84 dividend and a 0.7% yield; institutional investors own 97.25% of the stock.

Encompass Health Corporation (NYSE:EHC - Get Free Report) has been given an average recommendation of "Moderate Buy" by the nine brokerages that are presently covering the firm, MarketBeat Ratings reports. Two analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $143.8571.

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

Encompass Health Price Performance

Encompass Health stock opened at $116.08 on Wednesday. The stock has a market cap of $11.52 billion, a price-to-earnings ratio of 19.38, a PEG ratio of 2.48 and a beta of 0.74. The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 0.76. The business has a 50-day simple moving average of $105.35 and a 200 day simple moving average of $103.88. Encompass Health has a 52 week low of $92.77 and a 52 week high of $127.99.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.09. The firm had revenue of $1.59 billion for the quarter, compared to analysts' expectations of $1.57 billion. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The company's revenue was up 9.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.37 EPS. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, research analysts forecast that Encompass Health will post 5.96 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a dividend of $0.21 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. This is a positive change from Encompass Health's previous quarterly dividend of $0.19. Encompass Health's payout ratio is 12.69%.

Insiders Place Their Bets

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of the company's 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 completion of the sale, the executive vice president owned 24,755 shares of the company's stock, valued at $2,588,382.80. This represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 1.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Encompass Health

Hedge funds have recently made changes to their positions in the business. EP Wealth Advisors LLC grew its position in Encompass Health by 2.4% in the 2nd quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company's stock valued at $453,000 after acquiring an additional 88 shares during the last quarter. Gamco Investors INC. ET AL lifted its position in shares of 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 purchasing an additional 94 shares during the last quarter. Gibson Capital LLC boosted its stake in shares of 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 purchasing an additional 101 shares during the period. Leuthold Group LLC boosted its stake in shares of Encompass Health by 0.3% during the fourth quarter. Leuthold Group LLC now owns 31,168 shares of the company's stock valued at $3,308,000 after purchasing an additional 104 shares during the period. Finally, Covestor Ltd increased its stake in Encompass Health by 24.4% in the 4th quarter. Covestor Ltd now owns 540 shares of the company's stock worth $57,000 after buying an additional 106 shares during the period. 97.25% of the stock is currently 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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