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

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

A number of research firms have commented on EHC. Barclays upped their target price on shares of Encompass Health from $150.00 to $153.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th.

Insiders Place Their Bets

In related news, Treasurer Edmund Fay sold 11,937 shares of the business’s stock in a transaction on Monday, March 9th. The shares were sold at an average price of $107.00, for a total value of $1,277,259.00. Following the completion of the sale, the treasurer directly owned 89,325 shares of the company’s stock, valued at $9,557,775. The trade was a 11.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 sale, the chief executive officer directly owned 377,070 shares of the company’s stock, valued at $42,096,094.80. The trade was a 28.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

Institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada grew its stake in shares of Encompass Health by 21.5% during the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock worth $8,960,000 after purchasing an additional 15,677 shares during the period. Millennium Management LLC raised its holdings in Encompass Health by 38.4% in the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock valued at $9,338,000 after acquiring an additional 25,574 shares during the last quarter. Caxton Associates LLP purchased a new position in Encompass Health during the first quarter worth about $259,000. Cetera Investment Advisers lifted its holdings in shares of Encompass Health by 50.7% during the 2nd quarter. Cetera Investment Advisers now owns 23,856 shares of the company’s stock worth $2,925,000 after acquiring an additional 8,022 shares during the period. Finally, TD Waterhouse Canada Inc. raised its stake in Encompass Health by 68,000.0% during the second quarter. TD Waterhouse Canada Inc. now owns 681 shares of the company’s stock worth $82,000 after purchasing an additional 680 shares during the period. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Encompass Health Trading Up 1.3%

Shares of EHC opened at $98.80 on Thursday. The firm has a 50-day moving average price of $102.72 and a 200 day moving average price of $111.60. Encompass Health has a 12-month low of $92.77 and a 12-month high of $127.99. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.76. The firm has a market capitalization of $9.82 billion, a P/E ratio of 17.83, a P/E/G ratio of 1.87 and a beta of 0.71.

Encompass Health (NYSE:EHC) last released its quarterly earnings results on Thursday, February 5th. The company reported $1.46 EPS for the quarter, beating the consensus estimate of $1.29 by $0.17. The firm had revenue of $3.09 billion for the quarter, compared to analyst estimates of $1.54 billion. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The business’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.17 EPS. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. Sell-side analysts forecast that Encompass Health will post 4.8 EPS for the current year.

Encompass Health Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.8%. The ex-dividend date is Wednesday, April 1st. Encompass Health’s dividend payout ratio is currently 13.72%.

About Encompass Health

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.