Encompass Health (NYSE:EHC) Upgraded by Wall Street Zen to "Buy" Rating

Key Points

• Wall Street Zen upgraded Encompass Health to “Buy” from “Hold,” joining a broadly positive analyst consensus. MarketBeat reports a consensus “Buy” rating and an average price target of $148.71.
• Encompass Health exceeded quarterly expectations, reporting $1.55 in EPS versus a $1.48 estimate and $1.60 billion in revenue, up 9.6% year over year. The company issued fiscal 2026 EPS guidance of $6.02–$6.25.
• Shares opened at $123.58, near their 12-month high of $127.99, while CEO Mark J. Tarr and EVP John Patrick Darby sold shares. Institutional investors own a substantial 97.25% of the company.

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

Other research analysts have also issued research reports about the stock. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. TD Cowen increased their price objective on Encompass Health from $125.00 to $140.00 and gave the company a "buy" rating in a research report on Monday, August 10th. UBS Group raised their price objective on Encompass Health from $150.00 to $155.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Barclays lifted their target price on Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Finally, Weiss Ratings raised Encompass Health from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $148.71.

Encompass Health Price Performance

Shares of NYSE EHC opened at $123.58 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 1.19, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. The firm has a 50-day moving average of $109.12 and a two-hundred day moving average of $105.47. The company has a market capitalization of $12.19 billion, a price-to-earnings ratio of 20.13, a PEG ratio of 2.51 and a beta of 0.72.

Encompass Health (NYSE:EHC - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts' expectations of $1.57 billion. During the same quarter in the previous year, the company posted $1.40 EPS. The business's revenue was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, analysts expect that Encompass Health will post 6.08 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the transaction, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP John Patrick Darby sold 8,906 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the sale, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,451,413.95. This trade represents a 10.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.80% of the stock is owned by insiders.

Institutional Trading of Encompass Health

Several hedge funds and other institutional investors have recently modified their holdings of EHC. BlackRock Inc. acquired a new position in Encompass Health during the second quarter valued at $1,059,762,000. Northwestern Mutual Wealth Management Co. boosted its position in Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company's stock worth $402,640,000 after acquiring an additional 3,793,358 shares during the period. Norges Bank purchased a new position in Encompass Health during the 4th quarter valued at about $133,221,000. William Blair Investment Management LLC purchased a new position in Encompass Health during the 2nd quarter valued at about $116,352,000. Finally, Price T Rowe Associates Inc. MD increased its holdings in shares of Encompass Health by 24.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company's stock valued at $510,047,000 after purchasing an additional 948,202 shares during the period. Institutional investors and hedge funds own 97.25% of the company's stock.

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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