Encompass Health Corporation (NYSE:EHC) Given Average Rating of “Buy” by Analysts

Encompass Health Corporation (NYSE:EHC) has earned an average recommendation of “Buy” from the nine brokerages that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a hold recommendation, seven have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $148.7143.

A number of equities research analysts have recently commented on EHC shares. Weiss Ratings raised shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 12th. Leerink Partners set a $152.00 target price on shares of Encompass Health in a research note on Friday, May 22nd. Barclays increased their price target on shares of Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. UBS Group raised 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. Finally, TD Cowen lifted 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.

Insider Transactions at Encompass Health

In related news, CEO Mark J. Tarr sold 173,148 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was 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. This represents a 39.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP John Patrick 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 value of $1,121,710.70. Following the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. This represents a 10.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

Institutional investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System lifted its holdings in Encompass Health by 9,758.8% during the second quarter. California State Teachers Retirement System now owns 11,605,197 shares of the company’s stock valued at $1,173,053,000 after purchasing an additional 11,487,483 shares in the last quarter. BlackRock Inc. acquired a new stake in shares of Encompass Health in the second quarter valued at about $1,059,762,000. Price T Rowe Associates Inc. MD increased its stake in shares of Encompass Health by 24.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock worth $510,047,000 after purchasing an additional 948,202 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of Encompass Health by 3,059,159.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after purchasing an additional 3,793,358 shares during the last quarter. Finally, Wellington Management Group LLP raised its position in shares of Encompass Health by 21.7% during the 4th quarter. Wellington Management Group LLP now owns 3,384,877 shares of the company’s stock worth $359,271,000 after purchasing an additional 603,472 shares during the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health Stock Performance

Shares of EHC stock opened at $120.98 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 stock has a market cap of $11.93 billion, a PE ratio of 19.70, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. The business has a 50-day simple moving average of $113.20 and a 200-day simple moving average of $107.18.

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

Encompass Health Increases Dividend

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

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.