Wall Street Zen Downgrades Encompass Health (NYSE:EHC) to Hold

Encompass Health (NYSE:EHC) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also recently issued reports on EHC. Weiss Ratings cut shares of Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, June 26th. UBS Group lifted their price target on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research note on Friday. Barclays upped their price objective on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research note on Thursday. Truist Financial raised their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Friday. Finally, Leerink Partners set a $152.00 target price on Encompass Health in a report on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $146.57.

Encompass Health Price Performance

EHC stock opened at $125.39 on Friday. Encompass Health has a 1 year low of $92.77 and a 1 year high of $127.99. The firm has a market capitalization of $12.44 billion, a P/E ratio of 20.42, a P/E/G ratio of 2.52 and a beta of 0.72. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.17. The business’s 50-day moving average is $106.91 and its two-hundred day moving average is $104.62.

Encompass Health (NYSE:EHC) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate 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 net margin of 10.01% and a return on equity of 18.08%. The company’s revenue for the quarter was up 9.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Analysts anticipate that Encompass Health will post 6.07 earnings per share for the current fiscal year.

Institutional Trading of Encompass Health

Large investors have recently bought and sold shares of the business. WPG Advisers LLC grew its position in Encompass Health by 73.3% during the 4th quarter. WPG Advisers LLC now owns 324 shares of the company’s stock worth $34,000 after purchasing an additional 137 shares during the last quarter. Flagship Harbor Advisors LLC purchased a new stake in shares of Encompass Health in the fourth quarter valued at about $37,000. Persistent Asset Partners Ltd acquired a new stake in shares of Encompass Health during the second quarter worth about $36,000. Caitong International Asset Management Co. Ltd boosted its stake in shares of Encompass Health by 36,200.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock worth $46,000 after buying an additional 362 shares during the period. Finally, Assetmark Inc. grew its holdings in shares of Encompass Health by 89.6% during the first quarter. Assetmark Inc. now owns 455 shares of the company’s stock worth $44,000 after buying an additional 215 shares during the last quarter. Institutional investors and hedge funds 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.