William Blair Boosts Earnings Estimates for Encompass Health

Encompass Health Co. (NYSE:EHC - Free Report) - Stock analysts at William Blair upped their Q2 2025 earnings per share (EPS) estimates for Encompass Health in a research report issued on Monday, April 28th. William Blair analyst J. Haase now expects that the company will post earnings of $1.14 per share for the quarter, up from their previous estimate of $1.12. William Blair currently has a "Outperform" rating on the stock. The consensus estimate for Encompass Health's current full-year earnings is $4.80 per share. William Blair also issued estimates for Encompass Health's Q3 2025 earnings at $1.16 EPS, Q4 2025 earnings at $1.29 EPS, FY2025 earnings at $4.96 EPS and FY2026 earnings at $5.56 EPS.

Encompass Health (NYSE:EHC - Get Free Report) last released its quarterly earnings results on Thursday, April 24th. The company reported $1.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.19 by $0.18. The company had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.43 billion. Encompass Health had a net margin of 8.48% and a return on equity of 17.56%. Encompass Health's revenue was up 10.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.12 earnings per share.

Other analysts also recently issued research reports about the stock. StockNews.com raised shares of Encompass Health from a "hold" rating to a "buy" rating in a research note on Friday, April 25th. UBS Group lifted their price objective on shares of Encompass Health from $117.00 to $130.00 and gave the stock a "buy" rating in a research note on Monday. KeyCorp boosted their price target on Encompass Health from $120.00 to $122.00 and gave the company an "overweight" rating in a research note on Friday, April 25th. Royal Bank of Canada increased their price target on Encompass Health from $110.00 to $125.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, Barclays increased their target price on shares of Encompass Health from $118.00 to $129.00 and gave the stock an "overweight" rating in a report on Friday, April 25th. Nine research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $120.86.

Encompass Health Stock Performance

Shares of NYSE:EHC traded up $0.79 during mid-day trading on Tuesday, reaching $116.73. 780,052 shares of the company traded hands, compared to its average volume of 684,974. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.05 and a quick ratio of 1.04. Encompass Health has a 52 week low of $82.74 and a 52 week high of $121.39. The company's 50 day moving average price is $101.41 and its 200-day moving average price is $99.09. The firm has a market cap of $11.76 billion, a PE ratio of 26.17, a PEG ratio of 2.31 and a beta of 0.87.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of EHC. Vanguard Group Inc. boosted its stake in shares of Encompass Health by 1.3% in the 4th quarter. Vanguard Group Inc. now owns 10,404,081 shares of the company's stock valued at $960,817,000 after purchasing an additional 138,196 shares during the last quarter. Invesco Ltd. raised its position in Encompass Health by 3.3% during the fourth quarter. Invesco Ltd. now owns 5,536,251 shares of the company's stock worth $511,273,000 after acquiring an additional 176,135 shares in the last quarter. Alliancebernstein L.P. increased its stake in shares of Encompass Health by 6.0% during the 4th quarter. Alliancebernstein L.P. now owns 2,076,869 shares of the company's stock worth $191,799,000 after purchasing an additional 117,617 shares during the last quarter. FMR LLC raised its stake in Encompass Health by 0.8% in the fourth quarter. FMR LLC now owns 1,973,846 shares of the company's stock valued at $182,285,000 after buying an additional 15,831 shares during the period. Finally, Geode Capital Management LLC raised its holdings in Encompass Health by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 1,679,774 shares of the company's stock valued at $155,176,000 after acquiring an additional 6,164 shares during the period. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Encompass Health news, EVP John Patrick Darby sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, April 29th. The stock was sold at an average price of $114.79, for a total value of $1,147,900.00. Following the completion of the sale, the executive vice president now owns 79,710 shares in the company, valued at approximately $9,149,910.90. This trade represents a 11.15 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Andrew L. Price sold 5,042 shares of the firm's stock in a transaction dated Thursday, February 13th. The stock was sold at an average price of $98.29, for a total transaction of $495,578.18. Following the transaction, the chief accounting officer now directly owns 69,164 shares of the company's stock, valued at $6,798,129.56. The trade was a 6.79 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.10% of the stock is currently owned by insiders.

Encompass Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 15th. Investors of record on Tuesday, July 1st will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 0.58%. The ex-dividend date is Tuesday, July 1st. Encompass Health's dividend payout ratio (DPR) is 14.05%.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.