Encompass Health (NYSE:EHC) Cut to “Hold” at Wall Street Zen

Wall Street Zen lowered shares of Encompass Health (NYSE:EHC) from a buy rating to a hold rating in a report released on Saturday,Wall Street Zen reports.

Several other research analysts also recently issued reports on the stock. Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research report on Friday, May 22nd. Truist Financial increased their target price on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Barclays boosted their price target on Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 12th. Finally, UBS Group increased their price objective on Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $148.71.

Encompass Health Stock Up 0.0%

EHC opened at $121.80 on Friday. Encompass Health has a one year low of $92.77 and a one year high of $127.99. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. The stock has a market capitalization of $12.02 billion, a P/E ratio of 19.84, a price-to-earnings-growth ratio of 2.47 and a beta of 0.75. The business’s 50-day simple moving average is $115.75 and its 200-day simple moving average is $107.65.

Encompass Health (NYSE:EHC) last announced 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 firm had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The business’s revenue was up 9.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Analysts anticipate that Encompass Health will post 6.08 EPS for the current year.

Encompass Health Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. Encompass Health’s dividend payout ratio (DPR) is presently 12.38%.

Insider Activity

In related news, CEO Mark Tarr sold 173,148 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the sale, the chief executive officer 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP John Darby sold 8,906 shares of Encompass Health 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 directly owned 75,041 shares in the company, valued at $9,451,413.95. This represents a 10.61% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 186,912 shares of company stock valued at $23,434,845 over the last three months. 1.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Encompass Health

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System raised its stake in shares of Encompass Health by 9,758.8% during the 2nd quarter. California State Teachers Retirement System now owns 11,605,197 shares of the company’s stock worth $1,173,053,000 after buying an additional 11,487,483 shares during the last quarter. BlackRock Inc. purchased a new position in shares of Encompass Health during the second quarter valued at approximately $1,059,762,000. Northwestern Mutual Wealth Management Co. boosted its position in Encompass Health by 3,059,159.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after acquiring an additional 3,793,358 shares during the last quarter. Norges Bank purchased a new stake in Encompass Health in the 4th quarter worth approximately $133,221,000. Finally, William Blair Investment Management LLC acquired a new position in Encompass Health in the 2nd quarter valued at $116,352,000. Institutional investors and hedge funds 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.