Encompass Health (NYSE:EHC) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Encompass Health from "hold" to "buy" and Barclays raised its price target to $153, leaving the consensus analyst rating at Buy with a $146.33 average target.
• Encompass Health reported Q1 EPS of $1.60 (vs. $1.51 est.) and revenue of $1.59B (+9% YoY), raised FY‑2026 EPS guidance to 5.890–6.110, and the stock jumped about 7.5% on the news.
• Several insiders have sold shares recently, including CEO Mark J. Tarr's sale of 150,000 shares (~$16.7M), which reduced his stake and may concern some investors despite insiders still owning about 1.8% of the company.

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

Separately, Barclays raised their price target on shares of Encompass Health from $150.00 to $153.00 and gave the stock an "overweight" rating in a research report on Friday, February 6th. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $146.33.

Encompass Health Stock Up 7.5%

EHC stock opened at $107.48 on Friday. Encompass Health has a twelve month low of $92.77 and a twelve month 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 company has a market capitalization of $10.69 billion, a P/E ratio of 19.40, a PEG ratio of 1.92 and a beta of 0.72. The firm has a 50 day simple moving average of $103.05 and a 200-day simple moving average of $107.65.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $1.60 earnings per share for the quarter, topping analysts' consensus estimates of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.54%. The business had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter last year, the company earned $1.37 earnings per share. The business's quarterly revenue was up 9.0% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, equities research analysts predict that Encompass Health will post 5.91 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Encompass Health news, CEO Mark J. Tarr sold 150,000 shares of Encompass Health stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total value of $16,746,000.00. Following the completion of the transaction, the chief executive officer owned 377,070 shares of the company's stock, valued at $42,096,094.80. The trade was a 28.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Treasurer Edmund Fay sold 11,937 shares of Encompass Health stock in a transaction on Monday, March 9th. The stock was 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 directly owned 89,325 shares of the company's stock, valued at approximately $9,557,775. This represents a 11.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Encompass Health

Several hedge funds and other institutional investors have recently modified their holdings of EHC. Citizens National Bank Trust Department acquired a new position in shares of Encompass Health during the third quarter valued at $26,000. First Horizon Corp acquired a new position in shares of Encompass Health during the third quarter valued at $34,000. WPG Advisers LLC boosted its holdings in shares of Encompass Health by 73.3% during the fourth quarter. WPG Advisers LLC now owns 324 shares of the company's stock valued at $34,000 after acquiring an additional 137 shares during the period. Westside Investment Management Inc. boosted its holdings in shares of Encompass Health by 56.7% during the third quarter. Westside Investment Management Inc. now owns 279 shares of the company's stock valued at $35,000 after acquiring an additional 101 shares during the period. Finally, Flagship Harbor Advisors LLC bought a new stake in shares of Encompass Health during the fourth quarter valued at about $37,000. Institutional investors and hedge funds own 97.25% of the company's stock.

Encompass Health News Roundup

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Q1 results beat expectations — Encompass reported revenue of about $1.59B (+9% YoY) and EPS of $1.60, topping consensus and showing solid margin and profitability improvements. Encompass Health (EHC) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Company raised FY‑2026 outlook — management updated full‑year EPS guidance to a range of 5.890–6.110 and increased revenue guidance (roughly $6.4–6.5B), signaling confidence in the recovery/hospital business. Encompass Health reports results for first quarter 2026
• Positive Sentiment: Underlying operating strength — company metrics cited in releases include healthy ROE (~18.2%), improved net margins and solid operating cash flow, supporting the earnings beat and guidance lift. Encompass Health reports results for first quarter 2026 (Finanznachrichten)
• Neutral Sentiment: Management commentary and detail — the Q1 earnings call transcript provides additional color on volumes, payor dynamics and capital allocation that investors may parse for sustainability of growth. EHC Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Wide media coverage — outlets summarized the beat + guidance and amplified the stock move; useful for understanding market momentum but not new fundamental data. Encompass Health (EHC) shares skyrocket, what you need to know
• Negative Sentiment: Insider selling highlighted — filings and coverage show multiple insider sales (including sales by senior executives) in recent months, which can be perceived as a governance/headwind signal by some investors. Encompass Health Corporation (EHC) Stock Falls on Q1 2026 Earnings

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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