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

Key Points

• Analyst consensus "Buy": Encompass Health is rated a consensus Buy by 10 analysts (7 buy, 2 strong buy, 1 hold) with an average one‑year price target of $143.29.
• Significant insider selling: CEO Mark J. Tarr sold 150,000 shares (about a 28.5% reduction in his stake) and Treasurer Edmund Fay sold 11,937 shares, leaving insiders with roughly 1.8% ownership.
• Quarterly beat and guidance: The company reported $1.46 EPS versus $1.29 expected and revenue of $3.09B (up 9.9% year‑over‑year), and set FY2026 guidance of $5.81–$6.10 EPS.

Encompass Health Corporation (NYSE:EHC - Get Free Report) has received a consensus recommendation of "Buy" from the ten analysts that are presently covering the company, Marketbeat.com reports. One analyst has rated the stock with a hold recommendation, seven have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $143.2857.

Several brokerages have issued reports on EHC. Barclays boosted their target price on shares of Encompass Health from $150.00 to $153.00 and gave the company an "overweight" rating in a research note on Friday, February 6th. Wall Street Zen downgraded shares of Encompass Health from a "buy" rating to a "hold" rating in a research note on Saturday, April 11th.

Insider Buying and Selling at Encompass Health

In other news, Treasurer Edmund Fay sold 11,937 shares of the business's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the transaction, the treasurer directly owned 89,325 shares in the company, valued at $9,557,775. The trade was a 11.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Mark J. Tarr sold 150,000 shares of the business's stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following the transaction, the chief executive officer owned 377,070 shares in the company, valued at approximately $42,096,094.80. This represents a 28.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Encompass Health

Institutional investors and hedge funds have recently modified their holdings of the stock. Citizens National Bank Trust Department purchased a new position in shares of Encompass Health during the 3rd quarter valued at $26,000. First Horizon Corp purchased a new position in shares of Encompass Health during the 3rd quarter valued at $34,000. WPG Advisers LLC grew its holdings in shares of Encompass Health by 73.3% during the 4th quarter. WPG Advisers LLC now owns 324 shares of the company's stock valued at $34,000 after acquiring an additional 137 shares in the last quarter. Westside Investment Management Inc. grew its holdings in shares of Encompass Health by 56.7% during the 3rd quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock valued at $35,000 after acquiring an additional 101 shares in the last quarter. Finally, Flagship Harbor Advisors LLC purchased a new position in shares of Encompass Health during the 4th quarter valued at $37,000. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Trading Up 0.1%

Encompass Health stock opened at $106.48 on Monday. Encompass Health has a 1 year low of $92.77 and a 1 year high of $127.99. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.08 and a current ratio of 1.08. The firm has a market cap of $10.59 billion, a price-to-earnings ratio of 19.22, a price-to-earnings-growth ratio of 2.04 and a beta of 0.75. The firm's 50 day moving average price is $104.36 and its two-hundred day moving average price is $108.78.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Thursday, February 5th. The company reported $1.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.17. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The company had revenue of $3.09 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same period in the previous year, the business earned $1.17 EPS. The company's revenue was up 9.9% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. On average, research analysts predict that Encompass Health will post 4.8 EPS for the current fiscal year.

Encompass Health Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st were paid a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Wednesday, April 1st. Encompass Health's payout ratio is 13.72%.

Encompass Health Company Profile

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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