Encompass Health Corporation (NYSE:EHC) Stock Now Rated “Buy” by Sell-Side Brokerages

Shares of Encompass Health Corporation (NYSE:EHC) have earned an average rating of “Buy” from the seven ratings firms that are covering the stock, MarketBeat reports. One research analyst has rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $148.50.

EHC has been the subject of several research reports. Barclays boosted their price target on Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Weiss Ratings raised shares of Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Truist Financial boosted their price target on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. UBS Group upped their price objective on shares of Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Finally, Wall Street Zen downgraded shares of Encompass Health from a “buy” rating to a “hold” rating in a report on Saturday.

Insiders Place Their Bets

In other news, CEO Mark J. Tarr sold 173,148 shares of the stock in a transaction that occurred 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 completion of the sale, the chief executive officer owned 267,814 shares of the company’s stock, valued at $33,602,622.58. This represents a 39.27% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP John Darby sold 4,858 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $121.09, for a total transaction of $588,255.22. Following the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at $9,086,714.69. This represents a 6.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 186,912 shares of company stock valued at $23,434,845 over the last ninety days. Corporate insiders own 1.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in EHC. Fort Washington Investment Advisors Inc. OH increased its stake in Encompass Health by 19.8% in the third quarter. Fort Washington Investment Advisors Inc. OH now owns 281,075 shares of the company’s stock valued at $34,148,000 after purchasing an additional 46,512 shares during the last quarter. ABLE Financial Group LLC lifted its position in Encompass Health by 1.9% in the third quarter. ABLE Financial Group LLC now owns 16,730 shares of the company’s stock valued at $2,033,000 after acquiring an additional 308 shares during the last quarter. Sivik Global Healthcare LLC lifted its position in Encompass Health by 166.7% in the third quarter. Sivik Global Healthcare LLC now owns 40,000 shares of the company’s stock valued at $4,860,000 after acquiring an additional 25,000 shares during the last quarter. Wedmont Private Capital purchased a new position in shares of Encompass Health during the third quarter worth about $205,000. Finally, Diversified Management Inc. acquired a new stake in shares of Encompass Health during the third quarter worth about $230,000. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Price Performance

Shares of NYSE EHC opened at $127.69 on Monday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. Encompass Health has a 12 month low of $92.77 and a 12 month high of $129.96. The firm’s 50 day simple moving average is $122.51 and its 200-day simple moving average is $111.66. The stock has a market capitalization of $12.60 billion, a price-to-earnings ratio of 20.80, a PEG ratio of 2.59 and a beta of 0.74.

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

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were issued a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.7%. The ex-dividend date was Thursday, October 1st. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio (DPR) is currently 13.68%.

Encompass Health Company Profile

Encompass Health Corporation (NYSE:EHC) is a healthcare services company focused on inpatient rehabilitation. Through its network of rehabilitation hospitals, the company provides intensive medical and therapeutic care to patients recovering from conditions such as strokes, brain and spinal cord injuries, hip fractures, amputations, neurological disorders, and other disabling illnesses or injuries.

Its rehabilitation hospitals offer coordinated care from physicians, nurses, therapists, and other healthcare professionals.