Encompass Health Corporation (NYSE:EHC) Receives Average Recommendation of “Buy” from Brokerages

Shares of Encompass Health Corporation (NYSE:EHC) have earned a consensus recommendation of “Buy” from the ten research firms that are presently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a hold rating, seven have issued a buy rating and two have given a strong buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $143.2857.

Several research firms have recently weighed in on EHC. 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 note on Friday, February 6th. Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a report on Sunday, January 18th.

Encompass Health Trading Up 1.3%

NYSE EHC opened at $98.80 on Thursday. The stock has a market cap of $9.82 billion, a PE ratio of 17.83, a PEG ratio of 1.87 and a beta of 0.71. Encompass Health has a 12 month low of $92.77 and a 12 month high of $127.99. The company’s 50-day moving average price is $102.72 and its 200-day moving average price is $111.60. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.76.

Encompass Health (NYSE:EHC) last announced its quarterly earnings data on Thursday, February 5th. The company reported $1.46 earnings per share for the quarter, beating analysts’ consensus estimates of $1.29 by $0.17. The company had revenue of $3.09 billion during the quarter, compared to analyst estimates of $1.54 billion. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The firm’s revenue for the quarter was up 9.9% on a year-over-year basis. During the same quarter last year, the business posted $1.17 EPS. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. Equities research analysts forecast that Encompass Health will post 4.8 earnings per share for the current year.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st will be given a dividend of $0.19 per share. The ex-dividend date of this dividend is Wednesday, April 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.8%. Encompass Health’s dividend payout ratio (DPR) is 13.72%.

Insider Buying and Selling

In related news, Treasurer Edmund Fay sold 11,937 shares of the stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the completion of the sale, the treasurer owned 89,325 shares of the company’s stock, valued at $9,557,775. This represents a 11.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Mark J. Tarr sold 150,000 shares of the stock in a transaction 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 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 disclosure for this sale is available in the SEC filing. Insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. raised its stake in Encompass Health by 3,059,159.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,793,482 shares of the company’s stock worth $402,640,000 after acquiring an additional 3,793,358 shares during the last quarter. Norges Bank acquired a new position in shares of Encompass Health in the fourth quarter worth about $133,221,000. Price T Rowe Associates Inc. MD boosted its position in Encompass Health by 24.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,805,413 shares of the company’s stock worth $510,047,000 after purchasing an additional 948,202 shares in the last quarter. Millennium Management LLC lifted its position in shares of Encompass Health by 140.0% during the 3rd quarter. Millennium Management LLC now owns 1,223,665 shares of the company’s stock valued at $155,430,000 after buying an additional 713,738 shares in the last quarter. Finally, 8 Knots Management LLC purchased a new position in Encompass Health during the second quarter valued at $78,644,000. Hedge funds and other 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.