Encompass Health Corporation $EHC Stock: Tectonic Advisors LLC Raises Stake

Key Points

• Tectonic Advisors increased its Encompass Health stake by 153.3% in the third quarter to 19,675 shares valued at approximately $2.39 million. Institutional investors collectively own 97.25% of the company.
• Encompass Health reported quarterly EPS of $1.55, beating estimates by $0.07, while revenue rose 9.6% year over year to $1.60 billion. The company issued fiscal 2026 EPS guidance of $6.02–$6.25.
• Analysts maintain a consensus “Buy” rating with a $148.50 target price, compared with the stock’s recent price of $124.23. The company also declared a quarterly dividend of $0.21, while insiders sold approximately $23.4 million of shares over the past 90 days.

Tectonic Advisors LLC grew its holdings in Encompass Health Corporation (NYSE:EHC - Free Report) by 153.3% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 19,675 shares of the company's stock after purchasing an additional 11,907 shares during the quarter. Tectonic Advisors LLC's holdings in Encompass Health were worth $2,390,000 as of its most recent filing with the SEC.

Several other large investors also recently made changes to their positions in the business. BlackRock Inc. bought a new position in shares of Encompass Health in the second quarter valued at about $1,059,762,000. William Blair Investment Management LLC acquired a new stake in Encompass Health in the 2nd quarter valued at about $116,352,000. Bank of New York Mellon Corp acquired a new stake in Encompass Health in the 2nd quarter valued at about $81,676,000. Bank of America Corp DE acquired a new stake in Encompass Health in the 2nd quarter valued at about $79,660,000. Finally, Freestone Grove Partners LP bought a new position in shares of Encompass Health in the second quarter worth about $38,677,000. Institutional investors own 97.25% of the company's stock.

Encompass Health Trading Down 1.4%

EHC stock traded down $1.78 during midday trading on Friday, reaching $124.23. The stock had a trading volume of 805,861 shares, compared to its average volume of 1,087,470. The firm has a market cap of $12.26 billion, a price-to-earnings ratio of 20.23, a PEG ratio of 2.55 and a beta of 0.74. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month high of $129.96. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.76. The business has a fifty day simple moving average of $122.35 and a two-hundred day simple moving average of $112.46.

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

Encompass Health Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be issued a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, January 4th. Encompass Health's dividend payout ratio is currently 13.68%.

Insider Activity at Encompass Health

In other Encompass Health news, EVP John Darby sold 8,906 shares of Encompass Health 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 completion of the sale, the executive vice president owned 75,041 shares of the company's stock, valued at approximately $9,451,413.95. The trade was a 10.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of the company's stock in a transaction 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 owned 267,814 shares of the company's stock, valued at $33,602,622.58. The trade was a 39.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 186,912 shares of company stock worth $23,434,845 over the last 90 days. 1.80% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of brokerages have recently issued reports on EHC. UBS Group upped their target price on shares of Encompass Health from $150.00 to $155.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Weiss Ratings raised shares of Encompass Health from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Raymond James Financial set a $150.00 price objective on shares of Encompass Health in a research report on Monday, September 28th. Barclays upped their price objective on Encompass Health from $140.00 to $144.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus target price of $148.50.

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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