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

Key Points

• Wall Street Zen downgraded Encompass Health to “Hold” from “Buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $146.57.
• Encompass Health exceeded quarterly expectations, reporting $1.55 in earnings per share and $1.60 billion in revenue, with revenue up 9.6% year over year. The company issued fiscal 2026 EPS guidance of $6.02 to $6.25.
• Shares opened at $125.39, near their 12-month high of $127.99. Institutional investors own 97.25% of the stock, while an executive recently sold 682 shares.

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

Other analysts have also issued research reports about the stock. TD Cowen began coverage on shares of Encompass Health in a report on Thursday, May 28th. They issued a "buy" rating and a $125.00 price target for the company. Weiss Ratings downgraded Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, June 26th. Truist Financial lifted their target price on Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research note on Friday. UBS Group boosted their target price on Encompass Health from $150.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday. Finally, Leerink Partners set a $152.00 price target on Encompass Health in a research note on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $146.57.

Encompass Health Stock Up 0.5%

Shares of NYSE:EHC opened at $125.39 on Friday. Encompass Health has a 12 month low of $92.77 and a 12 month high of $127.99. The company's 50-day moving average price is $106.91 and its two-hundred day moving average price is $104.59. The company has a quick ratio of 1.17, a current ratio of 1.19 and a debt-to-equity ratio of 0.76. The firm has a market cap of $12.44 billion, a P/E ratio of 20.42, a P/E/G ratio of 2.67 and a beta of 0.72.

Encompass Health (NYSE:EHC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, topping analysts' consensus estimates of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same period in the previous year, the firm posted $1.40 earnings per share. The company's revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, research analysts forecast that Encompass Health will post 6.08 EPS for the current fiscal year.

Insider Transactions at Encompass Health

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of Encompass Health stock in a transaction on Monday, May 11th. The shares were sold at an average price of $104.56, for a total transaction of $71,309.92. Following the completion of the sale, the executive vice president 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Meeder Asset Management Inc. bought a new position in shares of Encompass Health in the 2nd quarter worth $4,414,000. BlackRock Inc. acquired a new stake in shares of Encompass Health in the 2nd quarter valued at approximately $1,059,762,000. Deutsche Bank AG bought a new position in Encompass Health during the 2nd quarter worth approximately $1,285,000. Rice Hall James & Associates LLC acquired a new position in Encompass Health during the second quarter valued at approximately $4,047,000. Finally, TimesSquare Capital Management LLC acquired a new position in Encompass Health during the second quarter valued at approximately $38,221,000. 97.25% of the stock is currently owned by institutional investors.

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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