Encompass Health Corporation (NYSE:EHC) Given Average Rating of “Buy” by Brokerages

Encompass Health Corporation (NYSE:EHC) has been assigned a consensus rating of “Buy” from the ten brokerages that are covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a hold rating, seven have issued a buy rating and two have assigned a strong buy rating to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $143.2857.

EHC has been the subject of a number of recent analyst reports. Zacks Research downgraded Encompass Health from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 19th. Barclays lifted their price target 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. Finally, Wall Street Zen upgraded shares of Encompass Health from a “hold” rating to a “buy” rating in a report on Sunday, January 18th.

Insider Activity

In related news, CEO Mark J. Tarr sold 150,000 shares of the stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $111.64, for a total transaction of $16,746,000.00. Following the transaction, the chief executive officer owned 377,070 shares of the company’s stock, valued at approximately $42,096,094.80. This represents a 28.46% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

A number of large investors have recently modified their holdings of the company. Citizens National Bank Trust Department acquired a new stake in shares of Encompass Health during the third quarter worth about $26,000. First Horizon Corp purchased a new stake in Encompass Health in the 3rd quarter valued at approximately $34,000. WPG Advisers LLC lifted its holdings in Encompass Health by 73.3% in 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 in the last quarter. Westside Investment Management Inc. lifted its stake in shares of Encompass Health by 56.7% during the third quarter. Westside Investment Management Inc. now owns 279 shares of the company’s stock valued at $35,000 after buying an additional 101 shares during the period. Finally, Flagship Harbor Advisors LLC purchased a new stake in shares of Encompass Health in the fourth quarter valued at $37,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

Encompass Health Price Performance

Shares of EHC stock opened at $107.70 on Friday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.08 and a quick ratio of 1.14. The company has a market capitalization of $10.84 billion, a PE ratio of 19.44, a price-to-earnings-growth ratio of 2.07 and a beta of 0.73. The firm’s 50-day moving average is $103.86 and its two-hundred day moving average is $114.09. Encompass Health has a 12 month low of $92.53 and a 12 month high of $127.99.

Encompass Health (NYSE:EHC) last announced 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 the consensus estimate of $1.54 billion. During the same quarter last year, the firm earned $1.17 EPS. 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. Analysts predict that Encompass Health will post 4.8 earnings per share for the current year.

Encompass Health Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st will be given a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Wednesday, April 1st. Encompass Health’s dividend payout ratio (DPR) 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.