Zacks Research Expects Lower Earnings for Encompass Health

Encompass Health Corporation (NYSE:EHC - Free Report) - Equities research analysts at Zacks Research cut their Q2 2025 earnings estimates for Encompass Health in a note issued to investors on Tuesday, July 8th. Zacks Research analyst R. Sipani now anticipates that the company will post earnings of $1.16 per share for the quarter, down from their prior forecast of $1.17. The consensus estimate for Encompass Health's current full-year earnings is $4.80 per share. Zacks Research also issued estimates for Encompass Health's Q3 2025 earnings at $1.15 EPS.

Encompass Health (NYSE:EHC - Get Free Report) last issued its quarterly earnings data on Thursday, April 24th. The company reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.19 by $0.18. The business 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 8.97% and a return on equity of 17.63%. The company's revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.12 EPS.

A number of other research firms have also recently weighed in on EHC. Truist Financial reaffirmed a "buy" rating and set a $135.00 price target (up from $116.00) on shares of Encompass Health in a research note on Monday, April 28th. UBS Group upped their target price on shares of Encompass Health from $117.00 to $130.00 and gave the company a "buy" rating in a report on Monday, April 28th. Barclays increased their price objective 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. Royal Bank Of Canada increased their price objective on shares of Encompass Health from $110.00 to $125.00 and gave the stock an "outperform" rating in a report on Monday, April 28th. Finally, Stephens raised shares of Encompass Health from an "overweight" rating to a "strong-buy" rating and set a $135.00 target price for the company in a research report on Thursday, June 5th. Seven equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $131.50.

Encompass Health Stock Performance

Shares of EHC opened at $117.58 on Friday. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.06. The stock has a market capitalization of $11.85 billion, a P/E ratio of 24.29, a P/E/G ratio of 2.39 and a beta of 0.88. The company's fifty day moving average is $119.54 and its two-hundred day moving average is $106.03. Encompass Health has a 1 year low of $82.74 and a 1 year high of $123.13.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Exchange Traded Concepts LLC grew its holdings in shares of Encompass Health by 1.9% during the second quarter. Exchange Traded Concepts LLC now owns 8,095 shares of the company's stock worth $993,000 after purchasing an additional 152 shares during the last quarter. Canandaigua National Bank & Trust Co. bought a new position in Encompass Health during the second quarter worth about $260,000. Parallel Advisors LLC boosted its holdings in Encompass Health by 12.2% during the second quarter. Parallel Advisors LLC now owns 2,603 shares of the company's stock worth $319,000 after buying an additional 284 shares during the last quarter. Voya Investment Management LLC boosted its holdings in Encompass Health by 5.0% during the first quarter. Voya Investment Management LLC now owns 15,854 shares of the company's stock worth $1,606,000 after buying an additional 762 shares during the last quarter. Finally, Strs Ohio bought a new position in Encompass Health during the first quarter worth about $34,364,000. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Encompass Health

In related news, CEO Mark J. Tarr sold 118,384 shares of the business's stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $121.53, for a total value of $14,387,207.52. Following the completion of the sale, the chief executive officer directly owned 527,070 shares in the company, valued at approximately $64,054,817.10. The trade was a 18.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John Patrick Darby sold 10,000 shares of the company'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 transaction, the executive vice president owned 79,710 shares of the company's stock, valued at approximately $9,149,910.90. This trade represents a 11.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 132,663 shares of company stock valued at $16,034,082 in the last 90 days. 2.00% of the stock is currently owned by corporate insiders.

Encompass Health Dividend Announcement

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

Encompass Health Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.