Encompass Health (NYSE:EHC) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Encompass Health from a Buy to a Hold, though Barclays raised its target to $153 and the consensus analyst rating remains a Buy with an average price target of $143.29.
• Encompass Health beat quarterly expectations, reporting $1.46 EPS versus $1.29 expected and $3.09 billion in revenue, and issued FY2026 guidance of $5.81–$6.10 EPS.
• Significant insider selling occurred recently: CEO Mark J. Tarr sold 150,000 shares for about $16.75 million and Treasurer Edmund Fay sold 11,937 shares, leaving insiders owning roughly 2% of the company.

Encompass Health (NYSE:EHC - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

Separately, Barclays lifted their target price on shares of Encompass Health from $150.00 to $153.00 and gave the company an "overweight" rating in a research report on Friday, February 6th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, Encompass Health has an average rating of "Buy" and a consensus price target of $143.29.

Encompass Health Stock Down 1.0%

Shares of NYSE EHC opened at $107.25 on Friday. The company's 50-day simple moving average is $103.51 and its 200-day simple moving average is $109.70. Encompass Health has a 52-week low of $92.77 and a 52-week high of $127.99. The firm has a market cap of $10.66 billion, a price-to-earnings ratio of 19.36, a price-to-earnings-growth ratio of 2.08 and a beta of 0.75. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.76.

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 business had revenue of $3.09 billion for the quarter, compared to analyst estimates of $1.54 billion. During the same quarter last year, the business earned $1.17 earnings per share. The company's revenue for the quarter was up 9.9% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. Equities analysts predict that Encompass Health will post 4.8 EPS for the current fiscal year.

Insider Transactions at Encompass Health

In related news, Treasurer Edmund Fay sold 11,937 shares of the business's stock in a transaction dated 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 approximately $9,557,775. The trade was a 11.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Mark J. Tarr sold 150,000 shares of the business's stock in a transaction dated Wednesday, February 11th. The stock was 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 $42,096,094.80. The trade was a 28.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Encompass Health

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Citizens National Bank Trust Department purchased a new position in Encompass Health during the third quarter worth about $26,000. First Horizon Corp purchased a new position in Encompass Health during the third quarter worth about $34,000. WPG Advisers LLC raised its stake in Encompass Health by 73.3% during the fourth quarter. WPG Advisers LLC now owns 324 shares of the company's stock worth $34,000 after purchasing an additional 137 shares during the period. Westside Investment Management Inc. raised its stake in Encompass Health by 56.7% during the third quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock worth $35,000 after purchasing an additional 101 shares during the period. Finally, Flagship Harbor Advisors LLC purchased a new position in Encompass Health during the fourth quarter worth about $37,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

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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