Short Interest in Encompass Health Corporation (NYSE:EHC) Rises By 23.8%

Encompass Health Corporation (NYSE:EHC) saw a large increase in short interest during the month of January. As of January 30th, there was short interest totaling 4,301,775 shares, an increase of 23.8% from the January 15th total of 3,473,650 shares. Currently, 4.4% of the company’s shares are short sold. Based on an average trading volume of 1,156,420 shares, the days-to-cover ratio is presently 3.7 days. Based on an average trading volume of 1,156,420 shares, the days-to-cover ratio is presently 3.7 days. Currently, 4.4% of the company’s shares are short sold.

Analyst Ratings Changes

EHC has been the topic of a number of research analyst reports. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Sunday, January 18th. Barclays increased their target price on Encompass Health from $150.00 to $153.00 and gave the stock an “overweight” rating in a research report on Friday, February 6th. Zacks Research cut Encompass Health from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Finally, Raymond James Financial upgraded Encompass Health to a “strong-buy” rating in a research note on Friday, October 31st. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $143.29.

Encompass Health Stock Down 1.8%

Shares of EHC traded down $2.04 during trading on Monday, reaching $110.02. The company’s stock had a trading volume of 1,394,447 shares, compared to its average volume of 1,565,811. The company has a market cap of $11.07 billion, a price-to-earnings ratio of 19.86, a P/E/G ratio of 2.10 and a beta of 0.73. The company has a quick ratio of 1.14, a current ratio of 1.08 and a debt-to-equity ratio of 0.76. The company has a fifty day moving average of $103.93 and a two-hundred day moving average of $114.57. 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 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the previous year, the firm earned $1.17 earnings per share. The business’s 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. On average, sell-side analysts predict that Encompass Health will post 4.8 EPS for the current fiscal year.

Insider Buying and Selling at Encompass Health

In related news, CEO Mark J. Tarr sold 150,000 shares of the firm’s stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 377,070 shares of the company’s stock, valued at approximately $42,096,094.80. This trade represents a 28.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Encompass Health

A number of institutional investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. boosted its stake in 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 valued at $402,640,000 after purchasing an additional 3,793,358 shares during the period. Norges Bank bought a new stake in shares of Encompass Health during the fourth quarter valued at approximately $133,221,000. Millennium Management LLC boosted its position in shares of Encompass Health by 140.0% during the third quarter. Millennium Management LLC now owns 1,223,665 shares of the company’s stock worth $155,430,000 after buying an additional 713,738 shares during the period. 8 Knots Management LLC acquired a new position in shares of Encompass Health during the second quarter worth approximately $78,644,000. Finally, Alliancebernstein L.P. grew its holdings in Encompass Health by 23.4% in the 3rd quarter. Alliancebernstein L.P. now owns 2,515,878 shares of the company’s stock worth $319,567,000 after buying an additional 476,564 shares in the last quarter. 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.