Encompass Health Corporation (NYSE:EHC) Receives Average Rating of "Buy" from Brokerages

Key Points

• Analyst sentiment is bullish: Encompass Health has an average “Buy” rating from nine analysts, with an average 12-month price target of $148.71 versus a recent price of $120.24.
• Quarterly results exceeded expectations: The company reported EPS of $1.55, above the $1.48 consensus estimate, while revenue rose 9.6% year over year to $1.60 billion. Full-year fiscal 2026 guidance is $6.02–$6.25 in EPS.
• The dividend increased: Encompass Health raised its quarterly dividend from $0.19 to $0.21 per share, implying an annualized payout of $0.84 and a 0.7% yield. Separately, the CEO sold 173,148 shares, reducing his position by 39.27%.

Encompass Health Corporation (NYSE:EHC - Get Free Report) has been assigned an average recommendation of "Buy" from the nine research firms that are presently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold recommendation, seven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among analysts that have covered the stock in the last year is $148.7143.

EHC has been the subject of a number of research reports. Barclays lifted their target price on shares of Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. Truist Financial raised their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Weiss Ratings upgraded Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, August 12th. Finally, TD Cowen upped their target price on Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a research note on Monday, August 10th.

Insider Activity

In related news, CEO Mark J. Tarr sold 173,148 shares of the business's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the transaction, the chief executive officer owned 267,814 shares of the company's stock, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP John Patrick Darby sold 8,906 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the sale, the executive vice president directly owned 75,041 shares in the company, valued at $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Encompass Health

A number of hedge funds and other institutional investors have recently made changes to their positions in EHC. Nilsine Partners LLC grew its holdings in Encompass Health by 4.9% in the 2nd quarter. Nilsine Partners LLC now owns 34,434 shares of the company's stock valued at $3,481,000 after buying an additional 1,596 shares during the period. AlphaGrep UK Ltd purchased a new position in shares of Encompass Health during the 2nd quarter worth about $291,000. Nykredit A S acquired a new stake in shares of Encompass Health in the second quarter worth approximately $390,000. Natural Investments LLC grew its holdings in Encompass Health by 3.8% in the second quarter. Natural Investments LLC now owns 16,818 shares of the company's stock valued at $1,699,000 after purchasing an additional 616 shares during the period. Finally, Keeler Thomas Management LLC acquired a new position in Encompass Health during the second quarter worth approximately $3,709,000. Hedge funds and other institutional investors own 97.25% of the company's stock.

Encompass Health Stock Down 0.6%

Encompass Health stock opened at $120.24 on Friday. Encompass Health has a fifty-two week low of $92.77 and a fifty-two week high of $127.99. The firm has a market capitalization of $11.86 billion, a price-to-earnings ratio of 19.58, a price-to-earnings-growth ratio of 2.44 and a beta of 0.72. The stock's fifty day moving average is $111.01 and its two-hundred day moving average is $106.38. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The business's revenue was up 9.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Analysts predict that Encompass Health will post 6.09 EPS for the current fiscal 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 issued a $0.21 dividend. 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. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health's payout ratio is presently 12.38%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source