KeyCorp Boosts Earnings Estimates for Encompass Health

Key Points

• KeyCorp raised its FY2026 EPS estimate for Encompass Health to $6.33 from $6.18, above the $6.28 consensus, while maintaining an “Overweight” rating and $150 price target.
• Encompass Health’s latest quarter exceeded expectations, with EPS of $1.52 versus $1.36 estimated and revenue up 8.9% year over year to $1.61 billion. Management also raised its 2026 adjusted EPS guidance to $6.23–$6.37.
• Analyst sentiment remains broadly positive: the stock has a consensus “Buy” rating and $154.14 price target, though recent insider selling—including substantial sales by the CEO and an executive—remains a potential cautionary signal.

Encompass Health Corporation (NYSE:EHC - Free Report) - Investment analysts at KeyCorp lifted their FY2026 earnings estimates for shares of Encompass Health in a report issued on Thursday, October 29th. KeyCorp analyst M. Gillmor now expects that the company will post earnings per share of $6.33 for the year, up from their prior forecast of $6.18. KeyCorp has an "Overweight" rating and a $150.00 price objective on the stock. The consensus estimate for Encompass Health's current full-year earnings is $6.28 per share. KeyCorp also issued estimates for Encompass Health's Q4 2026 earnings at $1.65 EPS, Q1 2027 earnings at $1.66 EPS, Q2 2027 earnings at $1.74 EPS, Q3 2027 earnings at $1.64 EPS, Q4 2027 earnings at $1.75 EPS and FY2027 earnings at $6.80 EPS.

Several other research firms have also recently commented on EHC. Barclays raised their target price on shares of Encompass Health from $144.00 to $151.00 and gave the stock an "overweight" rating in a research report on Thursday. UBS Group reaffirmed a "buy" rating and issued a $165.00 price target on shares of Encompass Health in a report on Friday. TD Cowen increased their target price on Encompass Health from $140.00 to $150.00 and gave the company a "buy" rating in a research report on Friday. Weiss Ratings raised shares of Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Finally, Wall Street Zen raised shares of Encompass Health from a "hold" rating to a "buy" rating in a research report on Saturday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Encompass Health has a consensus rating of "Buy" and a consensus price target of $154.14.

Encompass Health Price Performance

Shares of NYSE:EHC opened at $136.09 on Monday. The company has a market cap of $13.43 billion, a price-to-earnings ratio of 21.26, a PEG ratio of 2.55 and a beta of 0.83. Encompass Health has a one year low of $92.77 and a one year high of $137.27. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.09 and a quick ratio of 1.19. The firm has a 50 day simple moving average of $122.89 and a 200 day simple moving average of $109.98.

Encompass Health (NYSE:EHC - Get Free Report) last released its earnings results on Wednesday, October 28th. The company reported $1.52 EPS for the quarter, topping analysts' consensus estimates of $1.36 by $0.16. Encompass Health had a return on equity of 18.35% and a net margin of 10.17%. The company had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter last year, the business posted $1.23 EPS. Encompass Health's quarterly revenue was up 8.9% compared to the same quarter last year.

Encompass Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be given a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Monday, January 4th. Encompass Health's dividend payout ratio (DPR) is presently 13.12%.

Insider Activity at Encompass Health

In other Encompass Health news, EVP John Darby sold 4,858 shares of Encompass Health stock in a transaction on Monday, August 31st. The shares were sold at an average price of $121.09, for a total value of $588,255.22. Following the sale, the executive vice president directly owned 75,041 shares in the company, valued at approximately $9,086,714.69. The trade was a 6.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Mark 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 sale, the chief executive officer directly owned 267,814 shares in the company, valued at $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 186,912 shares of company stock valued at $23,434,845 in the last ninety days. Insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Encompass Health

Several hedge funds have recently modified their holdings of the stock. Covestor Ltd lifted its holdings in shares of Encompass Health by 38.1% in the 3rd quarter. Covestor Ltd now owns 660 shares of the company's stock valued at $80,000 after purchasing an additional 182 shares during the last quarter. Vise Technologies Inc. grew its holdings in Encompass Health by 17.1% in the 3rd quarter. Vise Technologies Inc. now owns 6,524 shares of the company's stock valued at $793,000 after buying an additional 951 shares during the period. State of Wyoming lifted its holdings in shares of Encompass Health by 262.1% during the 3rd quarter. State of Wyoming now owns 2,506 shares of the company's stock valued at $304,000 after acquiring an additional 1,814 shares in the last quarter. Choreo LLC acquired a new position in shares of Encompass Health in the 3rd quarter valued at approximately $230,000. Finally, Childress Capital Advisors LLC lifted its position in shares of Encompass Health by 5.1% in the 3rd quarter. Childress Capital Advisors LLC now owns 2,189 shares of the company's stock worth $266,000 after buying an additional 106 shares during the last quarter. Hedge funds and other institutional investors own 97.25% of the company's stock.

More Encompass Health News

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

• Positive Sentiment: Q3 results exceeded expectations: Encompass Health reported adjusted earnings of $1.52 per share, above the $1.36 consensus estimate and up from $1.23 a year earlier. Revenue rose 8.9% year over year to $1.61 billion, while adjusted EBITDA increased 15.5% to $346.6 million. Encompass Health Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 adjusted EPS of $6.23 to $6.37, above the prior range of $6.02 to $6.25 and higher than the $6.11 analyst consensus. Revenue guidance remains approximately $6.5 billion. Encompass Health Climbs After Q3 Results Top Expectations and Guidance Is Raised
• Positive Sentiment: Patient-care metrics remained healthy: Quarterly discharges increased 5.7%, same-store discharges rose 3.0%, and net patient revenue per discharge improved 4.0%, supporting the view that demand for inpatient rehabilitation services remains strong. Encompass Health Q3 2026 Earnings Call Transcript
• Positive Sentiment: TD Cowen became more bullish: The firm raised its price target from $140 to $150 and assigned a “Buy” rating, implying further upside based on the referenced share price. TD Cowen Raises Encompass Health Price Target
• Neutral Sentiment: Valuation commentary was favorable: Zacks identified EHC as a strong value stock, although the report appears to be based primarily on its quantitative Style Scores rather than a new fundamental development. Why Encompass Health Is a Strong Value Stock
• Negative Sentiment: Insider selling is a watchpoint: Recent data shows company insiders made no open-market purchases and sold shares during the past six months. These transactions may reflect diversification or planned selling, but they provide a modest counterpoint to the otherwise positive earnings news. Encompass Health Insider Trading and Earnings Analysis

About Encompass Health

Encompass Health Corporation NYSE: EHC is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company's services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.

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