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

Key Points

• Encompass Health has a consensus analyst rating of "Buy" from nine brokerages, with seven buy ratings and one strong buy; the average 1-year price target is about $143.86.
• The company reported better-than-expected quarterly results, posting EPS of $1.60 versus $1.51 expected and revenue of $1.59 billion versus $1.57 billion expected, with revenue up 9% year over year.
• Encompass Health also announced a quarterly dividend of $0.19 per share payable July 15, representing an annualized yield of about 0.8%; meanwhile, the stock was trading around $101.18, down 2.7% on the day.

Encompass Health Corporation (NYSE:EHC - Get Free Report) has been given an average rating of "Buy" by the nine brokerages that are covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $143.8571.

A number of equities analysts have issued reports on EHC shares. Leerink Partners set a $152.00 price objective on shares of Encompass Health in a report on Friday, May 22nd. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. 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 on the stock. Finally, Barclays cut their price objective on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a report on Tuesday, May 5th.

Encompass Health Trading Down 2.7%

NYSE:EHC opened at $101.18 on Tuesday. 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 firm has a 50-day moving average of $103.86 and a 200-day moving average of $104.88. The company has a market cap of $10.04 billion, a PE ratio of 16.89, a PEG ratio of 2.27 and a beta of 0.72. Encompass Health has a one year low of $92.77 and a one year high of $127.99.

Encompass Health (NYSE:EHC - Get Free Report) last posted its 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. The company had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The firm's revenue for the quarter was up 9.0% on a year-over-year basis. During the same period in the previous year, the firm posted $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. As a group, equities research analysts expect that Encompass Health will post 5.97 EPS for the current fiscal year.

Encompass Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be issued a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Wednesday, July 1st. Encompass Health's payout ratio is currently 12.69%.

Insider Transactions at Encompass Health

In related news, EVP Patrick William Tuer sold 682 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $104.56, for a total value of $71,309.92. Following the transaction, the executive vice president directly owned 24,755 shares of the company's stock, valued at approximately $2,588,382.80. The trade was a 2.68% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Encompass Health

A number of hedge funds and other institutional investors have recently made changes to their positions in EHC. Royal Bank of Canada boosted its holdings in shares of Encompass Health by 21.5% in the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company's stock worth $8,960,000 after buying an additional 15,677 shares during the last quarter. Millennium Management LLC boosted its holdings in shares of Encompass Health by 38.4% in the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company's stock worth $9,338,000 after buying an additional 25,574 shares during the last quarter. Caxton Associates LLP purchased a new position in shares of Encompass Health in the 1st quarter worth about $259,000. Walleye Capital LLC boosted its holdings in shares of Encompass Health by 667.6% in the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company's stock worth $800,000 after buying an additional 7,671 shares during the last quarter. Finally, Gamco Investors INC. ET AL purchased a new position in shares of Encompass Health in the 2nd quarter worth about $588,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

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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