Encompass Health (NYSE:EHC) Upgraded 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 published on Saturday,Wall Street Zen reports.

Several other brokerages have also weighed in on EHC. Barclays upped their price objective on Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Weiss Ratings upgraded shares of Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. UBS Group boosted their target price on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a report on Friday, August 7th. TD Cowen increased their target price on shares of Encompass Health from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, August 10th. Finally, Truist Financial raised their target price on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, Encompass Health has a consensus rating of “Buy” and an average target price of $148.20.

Encompass Health Trading Up 1.2%

Shares of NYSE:EHC opened at $123.53 on Friday. The company has a 50 day moving average of $119.62 and a 200-day moving average of $109.11. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. The firm has a market cap of $12.19 billion, a P/E ratio of 20.12, a P/E/G ratio of 2.50 and a beta of 0.75. Encompass Health has a twelve month low of $92.77 and a twelve month high of $127.99.

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

Encompass Health Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be paid a $0.21 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio (DPR) is 12.38%.

Insider Activity

In other Encompass Health news, CEO Mark Tarr sold 173,148 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.47, for a total transaction of $21,724,879.56. Following the completion of the sale, the chief executive officer directly owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This represents a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP John Darby sold 4,858 shares of the firm’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $121.09, for a total transaction of $588,255.22. Following the completion of the transaction, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,086,714.69. The trade was a 6.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 186,912 shares of company stock worth $23,434,845. Corporate insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC purchased a new stake in shares of Encompass Health in the second quarter valued at $29,000. Persistent Asset Partners Ltd acquired a new stake in shares of Encompass Health in the second quarter worth $36,000. Keating Financial Advisory Services Inc. purchased a new position in shares of Encompass Health during the second quarter valued at $39,000. Assetmark Inc. raised its position in 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 period. Finally, Harbor Investment Advisory LLC purchased a new stake in Encompass Health in the 2nd quarter worth about $56,000. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

Encompass Health Company Profile

Encompass Health Corporation (NYSE:EHC) is a provider of post-acute healthcare services in the United States. The company operates inpatient rehabilitation hospitals that care for patients recovering from illness, injury, surgery or other medical conditions requiring intensive rehabilitation.

Its rehabilitation programs commonly serve patients recovering from strokes, brain and spinal cord injuries, neurological disorders, cardiac and pulmonary conditions, hip fractures, amputations and other orthopedic conditions.