Encompass Health Corporation (NYSE:EHC) Receives Consensus Rating of “Buy” from Analysts

Encompass Health Corporation (NYSE:EHC) has been given a consensus recommendation of “Buy” by the ten analysts that are covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a hold rating, seven have issued a buy rating and two have assigned a strong buy rating to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $143.2857.

Several equities research analysts recently commented on EHC shares. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Zacks Research lowered shares of Encompass Health from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th. Finally, Barclays lifted their price objective on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research note on Friday, February 6th.

Encompass Health Price Performance

Shares of EHC stock opened at $107.70 on Friday. The firm has a fifty day simple moving average of $103.86 and a 200-day simple moving average of $114.09. The company has a current ratio of 1.08, a quick ratio of 1.14 and a debt-to-equity ratio of 0.76. The company has a market capitalization of $10.84 billion, a PE ratio of 19.44, a price-to-earnings-growth ratio of 2.07 and a beta of 0.73. Encompass Health has a twelve month low of $92.53 and a twelve month high of $127.99.

Encompass Health (NYSE:EHC) last issued its quarterly earnings results on Thursday, February 5th. The company reported $1.46 EPS for the quarter, topping the consensus estimate of $1.29 by $0.17. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The business had revenue of $3.09 billion for the quarter, compared to analysts’ expectations of $1.54 billion. During the same quarter last year, the company posted $1.17 earnings per share. The company’s quarterly revenue was up 9.9% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. Equities research analysts anticipate that Encompass Health will post 4.8 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st will be given a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Wednesday, April 1st. Encompass Health’s dividend payout ratio (DPR) is 13.72%.

Insider Activity at Encompass Health

In other Encompass Health news, CEO Mark J. Tarr sold 150,000 shares of the business’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total value of $16,746,000.00. Following the completion of the transaction, the chief executive officer directly owned 377,070 shares of the company’s stock, valued at approximately $42,096,094.80. The trade was a 28.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 2.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of EHC. Northwestern Mutual Wealth Management Co. boosted its holdings in Encompass Health by 3,059,159.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after acquiring an additional 3,793,358 shares in the last quarter. Norges Bank purchased a new position in Encompass Health during the 4th quarter worth $133,221,000. Price T Rowe Associates Inc. MD grew 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 worth $510,047,000 after purchasing an additional 948,202 shares in the last quarter. Millennium Management LLC grew its holdings in shares of Encompass Health by 140.0% in the third quarter. Millennium Management LLC now owns 1,223,665 shares of the company’s stock valued at $155,430,000 after acquiring an additional 713,738 shares in the last quarter. Finally, 8 Knots Management LLC purchased a new stake in shares of Encompass Health during the 2nd quarter valued at $78,644,000. Institutional investors own 97.25% of the company’s stock.

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.