Encompass Health Corporation (NYSE:EHC) Receives Average Recommendation of "Buy" from Analysts

Key Points

• Analyst sentiment is positive on Encompass Health, with nine analysts averaging a “Buy” rating and a 12-month target price of about $144.17. Recent updates included Barclays trimming its target to $140 while maintaining an overweight rating, and Wall Street Zen upgrading the stock to buy.
• Recent quarterly results beat expectations, as Encompass Health reported EPS of $1.60 versus $1.51 expected and revenue of $1.59 billion versus $1.57 billion estimated. Revenue rose 9% year over year, and the company raised its FY 2026 EPS guidance to 5.89–6.11.
• The company announced a quarterly dividend of $0.19 per share, payable July 15, which equals an annualized yield of about 0.7%. Insider and institutional activity also showed mixed signals, with several hedge funds increasing holdings while executives recently sold shares.

Shares of Encompass Health Corporation (NYSE:EHC - Get Free Report) have been given an average recommendation of "Buy" by the nine analysts that are covering the stock, Marketbeat reports. One investment analyst has rated the stock with a hold recommendation, six have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $144.1667.

A number of brokerages recently weighed in on EHC. Barclays lowered their price target on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating for the company in a report on Tuesday, May 5th. Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd.

Encompass Health Stock Performance

Shares of Encompass Health stock opened at $107.36 on Friday. 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 market cap of $10.65 billion, a P/E ratio of 17.92, a P/E/G ratio of 2.34 and a beta of 0.72. The firm has a 50 day simple moving average of $102.99 and a 200 day simple moving average of $106.40. 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 issued its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, beating analysts' consensus estimates of $1.51 by $0.09. The business had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. Encompass Health's revenue for the quarter was up 9.0% compared to the same quarter last year. During the same quarter last year, the business posted $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Sell-side analysts predict that Encompass Health will post 5.97 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

The firm also recently announced 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 0.7%. The ex-dividend date of this dividend is Wednesday, July 1st. Encompass Health's payout ratio is currently 12.69%.

Insiders Place Their Bets

In other Encompass Health news, Treasurer Edmund Fay sold 11,937 shares of Encompass Health 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 completion of the sale, the treasurer owned 89,325 shares of the company's stock, valued at approximately $9,557,775. The trade was a 11.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Patrick William Tuer sold 682 shares of Encompass Health stock in a transaction on Monday, May 11th. The stock was sold at an average price of $104.56, for a total transaction of $71,309.92. Following the sale, the executive vice president directly owned 24,755 shares of the company's stock, valued at $2,588,382.80. This represents a 2.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.80% of the stock is currently owned by 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 the company. Thrivent Financial for Lutherans lifted its position in Encompass Health by 57.8% in the 3rd quarter. Thrivent Financial for Lutherans now owns 1,194,859 shares of the company's stock valued at $151,544,000 after acquiring an additional 437,464 shares in the last quarter. Jennison Associates LLC lifted its position in Encompass Health by 12.8% in the 3rd quarter. Jennison Associates LLC now owns 894,511 shares of the company's stock valued at $113,621,000 after acquiring an additional 101,274 shares in the last quarter. Tudor Investment Corp ET AL lifted its position in Encompass Health by 155.3% during the 3rd quarter. Tudor Investment Corp ET AL now owns 210,712 shares of the company's stock worth $26,765,000 after buying an additional 128,191 shares in the last quarter. JPMorgan Chase & Co. lifted its position in Encompass Health by 5.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,410,335 shares of the company's stock worth $179,141,000 after buying an additional 70,387 shares in the last quarter. Finally, AlphaQuest LLC lifted its position in Encompass Health by 170.9% during the 3rd quarter. AlphaQuest LLC now owns 29,916 shares of the company's stock worth $3,800,000 after buying an additional 18,874 shares in the last quarter. 97.25% of the stock is owned by 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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