Encompass Health (NYSE:EHC) Downgraded by Wall Street Zen to “Hold”

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

Other research analysts also recently issued reports about the company. Barclays lifted their price target on Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. TD Cowen raised their target price on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. UBS Group boosted their price target on shares of Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Raymond James Financial set a $150.00 target price on Encompass Health in a research note on Monday, September 28th. Finally, Truist Financial boosted their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Encompass Health currently has a consensus rating of “Buy” and an average target price of $148.50.

Encompass Health Stock Performance

Shares of EHC opened at $127.69 on Friday. The company’s 50 day moving average price is $122.51 and its 200 day moving average price is $111.56. Encompass Health has a 52 week low of $92.77 and a 52 week high of $129.96. The company has a market capitalization of $12.60 billion, a PE ratio of 20.80, a PEG ratio of 2.59 and a beta of 0.74. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19.

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

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were issued a dividend of $0.21 per share. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $0.84 annualized dividend and a yield of 0.7%. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s payout ratio is 13.68%.

Insider Buying and Selling

In other news, EVP John Darby sold 4,858 shares of the business’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $121.09, for a total value of $588,255.22. Following the completion of the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,086,714.69. The trade was a 6.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Mark 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 completion of the sale, the chief executive officer owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 186,912 shares of company stock valued at $23,434,845. Corporate insiders own 1.80% of the company’s stock.

Institutional Trading of Encompass Health

Institutional investors have recently added to or reduced their stakes in the stock. Fort Washington Investment Advisors Inc. OH grew its stake in shares of Encompass Health by 19.8% in the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 281,075 shares of the company’s stock valued at $34,148,000 after buying an additional 46,512 shares during the period. ABLE Financial Group LLC increased its stake in Encompass Health by 1.9% in the 3rd quarter. ABLE Financial Group LLC now owns 16,730 shares of the company’s stock valued at $2,033,000 after buying an additional 308 shares during the last quarter. Sivik Global Healthcare LLC boosted its position in Encompass Health by 166.7% in the third quarter. Sivik Global Healthcare LLC now owns 40,000 shares of the company’s stock worth $4,860,000 after purchasing an additional 25,000 shares during the last quarter. Wedmont Private Capital purchased a new position in shares of Encompass Health in the 3rd quarter worth about $205,000. Finally, Diversified Management Inc. bought a new position in shares of Encompass Health during the 3rd quarter valued at approximately $230,000. 97.25% of the stock is currently owned by institutional investors.

About Encompass Health

Encompass Health Corporation (NYSE:EHC) is a healthcare services company focused on inpatient rehabilitation. Through its network of rehabilitation hospitals, the company provides intensive medical and therapeutic care to patients recovering from conditions such as strokes, brain and spinal cord injuries, hip fractures, amputations, neurological disorders, and other disabling illnesses or injuries.

Its rehabilitation hospitals offer coordinated care from physicians, nurses, therapists, and other healthcare professionals.