Commerce Bank Purchases New Stake in Encompass Health Corporation $EHC

Commerce Bank purchased a new position in Encompass Health Corporation (NYSE:EHC) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 6,981 shares of the company’s stock, valued at approximately $706,000.

Other hedge funds also recently bought and sold shares of the company. EP Wealth Advisors LLC raised its holdings in shares of Encompass Health by 2.4% during the second quarter. EP Wealth Advisors LLC now owns 3,694 shares of the company’s stock valued at $453,000 after acquiring an additional 88 shares in the last quarter. Gamco Investors INC. ET AL grew its stake in Encompass Health by 2.0% in the first quarter. Gamco Investors INC. ET AL now owns 4,813 shares of the company’s stock worth $466,000 after purchasing an additional 94 shares during the period. Gibson Capital LLC increased its stake in shares of Encompass Health by 4.3% in the 1st quarter. Gibson Capital LLC now owns 2,431 shares of the company’s stock worth $235,000 after acquiring an additional 101 shares in the last quarter. Leuthold Group LLC lifted its position in Encompass Health by 0.3% during the 4th quarter. Leuthold Group LLC now owns 31,168 shares of the company’s stock valued at $3,308,000 after acquiring an additional 104 shares during the period. Finally, Covestor Ltd grew its holdings in Encompass Health by 24.4% in the fourth quarter. Covestor Ltd now owns 540 shares of the company’s stock worth $57,000 after purchasing an additional 106 shares during the period. Hedge funds and other institutional investors own 97.25% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on EHC. Truist Financial raised their price objective on Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, August 7th. TD Cowen lifted their price target on shares of Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. Leerink Partners set a $152.00 price target on Encompass Health in a research note on Friday, May 22nd. Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Finally, Barclays boosted their price target on Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $148.71.

Key Encompass Health News

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $6.03 from $5.96, FY2027 to $6.42 from $6.35, and FY2028 to $7.18 from $7.16. It also increased estimates for Q1 2027, Q2 2027, Q3 2027, and Q2 2028, signaling improving confidence in EHC’s medium- and long-term earnings trajectory.
• Positive Sentiment: Encompass Health’s facility expansion, including its North Carolina pipeline, could support 6%–8% multi-year discharge growth. That potential provides a fundamental catalyst for the stock by increasing future patient capacity and revenue. How EHC’s Capacity Expansion Fuels a Multi-Year Growth Runway
• Positive Sentiment: The company’s latest reported quarter also showed healthy operating momentum: adjusted earnings of $1.55 per share exceeded estimates, revenue reached $1.60 billion, and sales increased 9.6% year over year. Full-year 2026 guidance remains $6.02–$6.25 EPS.
• Neutral Sentiment: Zacks’ momentum analysis continues to characterize EHC as a long-term momentum candidate, although the assessment is based on quantitative style factors rather than a new company announcement. Why Encompass Health Is a Top Momentum Stock for the Long-Term
• Negative Sentiment: Zacks trimmed near-term estimates for Q3 2026 EPS to $1.35 from $1.36 and Q4 2026 EPS to $1.53 from $1.55. These modest cuts may limit immediate upside, though they were outweighed by the stronger longer-term revisions.

Insider Buying and Selling

In other news, CEO Mark J. Tarr sold 173,148 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $125.47, for a total value of $21,724,879.56. Following the sale, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP John Patrick Darby sold 8,906 shares of the firm’s stock in a transaction dated 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 directly owned 75,041 shares in the company, valued at $9,451,413.95. This represents a 10.61% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 1.80% of the company’s stock.

Encompass Health Price Performance

Encompass Health stock opened at $120.86 on Thursday. The firm’s fifty day moving average is $112.30 and its 200 day moving average is $106.98. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.76. The company has a market cap of $11.92 billion, a price-to-earnings ratio of 19.68, a PEG ratio of 2.43 and a beta of 0.72. Encompass Health Corporation has a 52-week low of $92.77 and a 52-week high of $127.99.

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

Encompass Health Increases Dividend

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

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.