Encompass Health (NYSE:EHC) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of Encompass Health (NYSE:EHC) from a hold rating to a buy rating in a report released on Sunday.

A number of other analysts also recently commented on the stock. TD Cowen increased their price objective on shares of Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a report on Monday, August 10th. Leerink Partners set a $152.00 target price on Encompass Health in a report on Friday, May 22nd. UBS Group upped their price target on Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Truist Financial lifted their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $148.71.

Encompass Health Trading Up 0.3%

Shares of EHC opened at $122.35 on Friday. Encompass Health has a 52-week low of $92.77 and a 52-week high of $127.99. 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 firm’s fifty day moving average is $109.89 and its two-hundred day moving average is $105.91. The stock has a market cap of $12.07 billion, a PE ratio of 19.93, a price-to-earnings-growth ratio of 2.51 and a beta of 0.72.

Encompass Health (NYSE:EHC) last issued its earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. The business had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.57 billion. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The company’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the prior year, the business earned $1.40 earnings per share. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Research analysts forecast that Encompass Health will post 6.08 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st 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 Thursday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio (DPR) is presently 12.38%.

Insider Activity at Encompass Health

In other news, EVP John Patrick Darby sold 8,906 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $125.95, for a total value 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 $9,451,413.95. This represents a 10.61% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, 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 sale, 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 SEC filing for this sale provides additional information. Corporate insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada increased its position in shares of Encompass Health by 21.5% during the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock worth $8,960,000 after purchasing an additional 15,677 shares during the last quarter. Millennium Management LLC lifted its position in Encompass Health by 38.4% in the first quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock valued at $9,338,000 after buying an additional 25,574 shares during the last quarter. Caxton Associates LLP purchased a new position in Encompass Health during the first quarter worth about $259,000. Walleye Capital LLC increased its position in shares of Encompass Health by 667.6% during the second quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock valued at $800,000 after acquiring an additional 7,671 shares during the last quarter. Finally, Gamco Investors INC. ET AL acquired a new stake in shares of Encompass Health during the second quarter valued at about $588,000. Hedge funds and other institutional investors 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.