Encompass Health (NYSE:EHC) Price Target Raised to $150.00

Encompass Health (NYSE:EHC) had its price objective lifted by TD Cowen from $140.00 to $150.00 in a report released on Friday morning,Benzinga reports. They currently have a buy rating on the stock.

Other research analysts have also recently issued reports about the company. Wall Street Zen cut Encompass Health from a “buy” rating to a “hold” rating in a research note on Saturday, October 17th. Weiss Ratings upgraded shares of Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Barclays upped their target price on shares of Encompass Health from $144.00 to $151.00 and gave the stock an “overweight” rating in a research note on Thursday. KeyCorp raised their price target on Encompass Health from $147.00 to $150.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, UBS Group reiterated a “buy” rating and issued a $165.00 price objective on shares of Encompass Health in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, Encompass Health currently has an average rating of “Buy” and an average price target of $154.14.

Encompass Health Stock Performance

Shares of EHC stock opened at $136.09 on Friday. The firm has a market capitalization of $13.43 billion, a price-to-earnings ratio of 21.26, a price-to-earnings-growth ratio of 2.55 and a beta of 0.83. Encompass Health has a 1 year low of $92.77 and a 1 year high of $137.27. The business has a fifty day moving average of $122.89 and a 200 day moving average of $109.98. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.09 and a quick ratio of 1.19.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.16. Encompass Health had a return on equity of 18.35% and a net margin of 10.17%. The firm had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the prior year, the company posted $1.23 earnings per share. The firm’s quarterly revenue was up 8.9% compared to the same quarter last year. As a group, research analysts expect that Encompass Health will post 6.28 earnings per share for the current year.

Encompass Health Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Monday, January 4th will be given a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Monday, January 4th. Encompass Health’s payout ratio is 13.12%.

Insider Transactions at Encompass Health

In other news, EVP John Darby sold 8,906 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction 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 approximately $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Mark J. Tarr sold 173,148 shares of the company’s 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 of the company’s stock, valued at approximately $33,602,622.58. This represents 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 ninety days, insiders sold 186,912 shares of company stock valued at $23,434,845. Insiders own 1.80% of the company’s stock.

Institutional Trading of Encompass Health

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Transamerica Financial Advisors LLC acquired a new position in shares of Encompass Health in the 2nd quarter valued at about $29,000. Persistent Asset Partners Ltd acquired a new stake in Encompass Health during the 2nd quarter worth about $36,000. Toth Financial Advisory Corp purchased a new stake in shares of Encompass Health during the 3rd quarter worth about $38,000. Keating Financial Advisory Services Inc. acquired a new stake in shares of Encompass Health in the second quarter valued at about $39,000. Finally, Assetmark Inc. increased its stake in Encompass Health by 89.6% during the first quarter. Assetmark Inc. now owns 455 shares of the company’s stock valued at $44,000 after acquiring an additional 215 shares during the period. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Key Stories Impacting Encompass Health

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Q3 results exceeded expectations: Encompass Health reported adjusted earnings of $1.52 per share, above the $1.36 consensus estimate and up from $1.23 a year earlier. Revenue rose 8.9% year over year to $1.61 billion, while adjusted EBITDA increased 15.5% to $346.6 million. Encompass Health Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 adjusted EPS of $6.23 to $6.37, above the prior range of $6.02 to $6.25 and higher than the $6.11 analyst consensus. Revenue guidance remains approximately $6.5 billion. Encompass Health Climbs After Q3 Results Top Expectations and Guidance Is Raised
• Positive Sentiment: Patient-care metrics remained healthy: Quarterly discharges increased 5.7%, same-store discharges rose 3.0%, and net patient revenue per discharge improved 4.0%, supporting the view that demand for inpatient rehabilitation services remains strong. Encompass Health Q3 2026 Earnings Call Transcript
• Positive Sentiment: TD Cowen became more bullish: The firm raised its price target from $140 to $150 and assigned a “Buy” rating, implying further upside based on the referenced share price. TD Cowen Raises Encompass Health Price Target
• Neutral Sentiment: Valuation commentary was favorable: Zacks identified EHC as a strong value stock, although the report appears to be based primarily on its quantitative Style Scores rather than a new fundamental development. Why Encompass Health Is a Strong Value Stock
• Negative Sentiment: Insider selling is a watchpoint: Recent data shows company insiders made no open-market purchases and sold shares during the past six months. These transactions may reflect diversification or planned selling, but they provide a modest counterpoint to the otherwise positive earnings news. Encompass Health Insider Trading and Earnings Analysis

Encompass Health Company Profile

Encompass Health Corporation (NYSE:EHC) is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company’s services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.