Encompass Health (NYSE:EHC) Issues Earnings Results

Key Points

• Encompass Health reported Q results of $1.60 EPS, beating consensus of $1.49 with revenue of $1.59B, and updated FY2026 guidance to 5.890–6.110 EPS.
• Shares traded down about 2.4% to $100.15 on heavy volume despite the beat, with a market capitalization near $9.96B and a P/E around 18.1.
• Significant insider selling was reported—CEO Mark J. Tarr sold 150,000 shares (~$16.7M) and Treasurer Edmund Fay sold 11,937 shares—and the company pays a quarterly dividend of $0.19 (annualized yield ~0.8%).

Encompass Health (NYSE:EHC - Get Free Report) announced its earnings results on Thursday. The company reported $1.60 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.49 by $0.11, FiscalAI reports. The company had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.58 billion. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. Encompass Health updated its FY 2026 guidance to 5.890-6.110 EPS.

Encompass Health Trading Down 2.4%

Shares of NYSE EHC traded down $2.46 during midday trading on Thursday, reaching $100.15. 2,098,849 shares of the stock were exchanged, compared to its average volume of 1,156,316. The company has a market capitalization of $9.96 billion, a P/E ratio of 18.08, a P/E/G ratio of 1.93 and a beta of 0.75. Encompass Health has a 52-week low of $92.77 and a 52-week high of $127.99. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.76. The stock has a 50 day moving average price of $103.19 and a 200-day moving average price of $107.70.

Encompass Health Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st were issued a dividend of $0.19 per share. The ex-dividend date was Wednesday, April 1st. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.8%. Encompass Health's payout ratio is 13.72%.

Insider Transactions at Encompass Health

In other news, Treasurer Edmund Fay sold 11,937 shares of the company'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 completion of the transaction, the treasurer owned 89,325 shares of the company's stock, valued at $9,557,775. This represents a 11.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Mark J. Tarr sold 150,000 shares of the company's stock in a transaction dated 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 directly owned 377,070 shares of the company's stock, valued at approximately $42,096,094.80. This represents a 28.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

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

Wall Street Analysts Forecast Growth

EHC has been the subject of a number of research reports. Wall Street Zen cut shares of Encompass Health from a "buy" rating to a "hold" rating in a research report on Saturday, April 11th. Barclays upped their target price on shares of Encompass Health from $150.00 to $153.00 and gave the company an "overweight" rating in a report on Friday, February 6th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $146.33.

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.

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