Hsbc Holdings PLC Makes New $23.86 Million Investment in Encompass Health Corporation $EHC

Hsbc Holdings PLC bought a new position in shares of Encompass Health Corporation (NYSE:EHC) during the second quarter, Holdings Channel.com reports. The firm bought 237,052 shares of the company’s stock, valued at approximately $23,861,000.

Several other hedge funds have also modified their holdings of EHC. BlackRock Inc. bought a new position in Encompass Health in the 2nd quarter worth approximately $1,059,762,000. Price T Rowe Associates Inc. MD boosted its position in Encompass Health by 24.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock valued at $510,047,000 after buying an additional 948,202 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in Encompass Health by 3,059,159.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock valued at $402,640,000 after buying an additional 3,793,358 shares during the last quarter. Wellington Management Group LLP increased its stake in shares of Encompass Health by 21.7% in the 4th quarter. Wellington Management Group LLP now owns 3,384,877 shares of the company’s stock valued at $359,271,000 after buying an additional 603,472 shares during the period. Finally, T. Rowe Price Investment Management Inc. raised its position in shares of Encompass Health by 27.2% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,722,887 shares of the company’s stock worth $289,008,000 after acquiring an additional 581,812 shares during the last quarter. 97.25% of the stock is owned by institutional investors.

Insider Transactions at Encompass Health

In related news, CEO Mark J. Tarr sold 173,148 shares of the stock in a transaction that occurred 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 sale, the chief executive officer directly owned 267,814 shares in the company, valued at $33,602,622.58. This trade represents a 39.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP John Patrick Darby sold 8,906 shares of Encompass Health 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 transaction, the executive vice president directly owned 75,041 shares in the company, valued at $9,451,413.95. The trade was a 10.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.80% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Truist Financial upped their price target on Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, August 7th. TD Cowen boosted their price objective on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, August 10th. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research report on Sunday, August 16th. 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. Finally, Barclays lifted their price target on shares of Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $148.71.

Encompass Health Stock Performance

EHC stock opened at $119.58 on Friday. Encompass Health Corporation has a twelve month low of $92.77 and a twelve month 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 cap of $11.80 billion, a P/E ratio of 19.48, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. The business’s fifty day moving average is $112.74 and its 200-day moving average is $107.08.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. The business 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 firm’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.40 earnings per share. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Equities research analysts forecast that Encompass Health Corporation will post 6.08 EPS for the current year.

Encompass Health Increases Dividend

The business 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 represents a $0.84 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, October 1st. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio is presently 12.38%.

Trending Headlines about Encompass Health

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 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.