Encompass Health (NYSE:EHC) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Encompass Health (NYSE:EHC) from a hold rating to a buy rating in a report issued on Sunday.

A number of other equities analysts also recently commented on the company. Truist Financial increased their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Friday, August 7th. TD Cowen boosted their target price on shares of Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Weiss Ratings upgraded shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday. Barclays raised their price target on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Finally, Leerink Partners set a $152.00 price objective on shares of Encompass Health in a research note on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Encompass Health presently has an average rating of “Buy” and a consensus target price of $148.71.

Encompass Health Trading Down 0.0%

NYSE EHC opened at $123.58 on Friday. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. Encompass Health has a 1-year low of $92.77 and a 1-year high of $127.99. The firm’s fifty day simple moving average is $109.12 and its 200-day simple moving average is $105.53. The company has a market capitalization of $12.19 billion, a PE ratio of 20.13, a price-to-earnings-growth ratio of 2.51 and a beta of 0.72.

Encompass Health (NYSE:EHC) last issued its earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. The firm had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The business’s quarterly revenue was up 9.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.40 earnings per share. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, sell-side analysts anticipate that Encompass Health will post 6.08 earnings per share for the current fiscal year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a $0.21 dividend. The ex-dividend date is Thursday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. Encompass Health’s dividend payout ratio is presently 12.38%.

Insider Buying and Selling at Encompass Health

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

Hedge Funds Weigh In On Encompass Health

Several large investors have recently made changes to their positions in the business. WPG Advisers LLC raised its stake in Encompass Health by 73.3% during the 4th quarter. WPG Advisers LLC now owns 324 shares of the company’s stock valued at $34,000 after purchasing an additional 137 shares during the last quarter. Persistent Asset Partners Ltd bought a new position in shares of Encompass Health during the 2nd quarter worth about $36,000. Keating Financial Advisory Services Inc. acquired a new position in shares of Encompass Health during the second quarter valued at about $39,000. Assetmark Inc. raised its position in shares of Encompass Health by 89.6% during the first quarter. Assetmark Inc. now owns 455 shares of the company’s stock valued at $44,000 after buying an additional 215 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its stake in shares of Encompass Health by 36,200.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock valued at $46,000 after buying an additional 362 shares during the period. Institutional investors and hedge funds own 97.25% of the company’s stock.

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.