Formula Growth Ltd. Invests $1.04 Million in Encompass Health Corporation $EHC

Formula Growth Ltd. acquired a new stake in shares of Encompass Health Corporation (NYSE:EHC) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 10,340 shares of the company’s stock, valued at approximately $1,045,000.

Other large investors also recently bought and sold shares of the company. EP Wealth Advisors LLC raised its holdings in shares of Encompass Health by 2.4% in the second quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company’s stock worth $453,000 after buying an additional 88 shares during the last quarter. Gamco Investors INC. ET AL grew its holdings in shares of Encompass Health by 2.0% during the first quarter. Gamco Investors INC. ET AL now owns 4,813 shares of the company’s stock valued at $466,000 after buying an additional 94 shares during the last quarter. Gibson Capital LLC increased its position in shares of Encompass Health by 4.3% in the 1st quarter. Gibson Capital LLC now owns 2,431 shares of the company’s stock valued at $235,000 after acquiring an additional 101 shares during the period. Leuthold Group LLC raised its stake in Encompass Health by 0.3% in the 4th quarter. Leuthold Group LLC now owns 31,168 shares of the company’s stock worth $3,308,000 after acquiring an additional 104 shares during the last quarter. Finally, Covestor Ltd lifted its position in Encompass Health by 24.4% during the 4th quarter. Covestor Ltd now owns 540 shares of the company’s stock worth $57,000 after acquiring an additional 106 shares during the period. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Analyst Upgrades and Downgrades

EHC has been the topic of several research analyst reports. TD Cowen boosted their price target on Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, August 10th. Leerink Partners set a $152.00 target price on Encompass Health in a report on Friday, May 22nd. Weiss Ratings upgraded Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. UBS Group raised their price target on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Truist Financial lifted their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued 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 $148.71.

Key Encompass Health News

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

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $6.03 from $5.96, increased FY2027 EPS to $6.42 from $6.35, and lifted FY2028 EPS to $7.18 from $7.16. The revisions indicate analysts continue to expect earnings growth over the next several years. Encompass Health analyst estimates
• Positive Sentiment: Quarterly estimates were also raised for Q1 2027, to $1.65 EPS from $1.63; Q2 2027, to $1.64 from $1.60; Q3 2027, to $1.49 from $1.48; and Q2 2028, to $1.87 from $1.84. These increases modestly improve the longer-term earnings outlook.
• Neutral Sentiment: Zacks’ FY2026 forecast of $6.03 remains slightly below the broader analyst consensus of approximately $6.08-$6.09 per share. This indicates that the revisions are constructive overall but do not represent a major upside surprise.
• Negative Sentiment: Zacks reduced its Q3 2026 EPS estimate to $1.35 from $1.36, Q4 2026 EPS to $1.53 from $1.55, and Q1 2028 EPS to $1.77 from $1.80. Lower near-term estimates could weigh on the stock because they point to slightly softer earnings momentum in upcoming reporting periods.

Encompass Health Stock Down 1.0%

Shares of EHC opened at $119.58 on Friday. Encompass Health Corporation 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 company has a market capitalization of $11.80 billion, a price-to-earnings ratio of 19.48, a PEG ratio of 2.45 and a beta of 0.72. The stock’s 50-day moving average price is $112.74 and its 200-day moving average price is $107.08.

Encompass Health (NYSE:EHC) last announced its quarterly 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. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The company had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same period in the previous year, the company posted $1.40 earnings per share. Encompass Health’s revenue for the quarter was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, sell-side analysts predict that Encompass Health Corporation 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. Investors of record on Thursday, October 1st will be issued a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health’s payout ratio is currently 12.38%.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 173,148 shares of Encompass Health stock in a transaction on 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 transaction, 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. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP John Patrick Darby sold 8,906 shares of the company’s stock in a transaction dated 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 transaction, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,451,413.95. This trade represents a 10.61% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is currently owned by company insiders.

Encompass Health 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.