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

Encompass Health Corporation (NYSE:EHC) has earned a consensus rating of “Buy” from the ten ratings firms that are presently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a hold rating, seven have given a buy rating and two have issued a strong buy rating on the company. The average 1-year price target among brokers that have covered the stock in the last year is $143.2857.

A number of research firms recently commented on EHC. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Zacks Research downgraded shares of Encompass Health from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 19th. Finally, Barclays increased their price objective on shares of Encompass Health from $150.00 to $153.00 and gave the stock an “overweight” rating in a research report on Friday, February 6th.

Insider Buying and Selling

In related news, CEO Mark J. Tarr sold 150,000 shares of the firm’s stock in a transaction that occurred on 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 completion of the sale, the chief executive officer owned 377,070 shares of the company’s stock, valued at $42,096,094.80. This trade represents a 28.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 2.00% of the stock is owned by corporate insiders.

Institutional Trading of Encompass Health

Large investors have recently modified their holdings of the stock. Citizens National Bank Trust Department acquired a new position in shares of Encompass Health during the 3rd quarter valued at $26,000. First Horizon Corp bought a new stake in Encompass Health in the third quarter valued at $34,000. Westside Investment Management Inc. boosted its position in shares of Encompass Health by 56.7% during the 3rd quarter. Westside Investment Management Inc. now owns 279 shares of the company’s stock worth $35,000 after purchasing an additional 101 shares in the last quarter. Assetmark Inc. raised its stake in Encompass Health by 88.1% during the 3rd quarter. Assetmark Inc. now owns 299 shares of the company’s stock worth $38,000 after buying an additional 140 shares during the period. Finally, Root Financial Partners LLC acquired a new stake in Encompass Health in the third quarter valued at approximately $39,000. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health Stock Down 1.1%

NYSE:EHC opened at $107.79 on Friday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.08 and a quick ratio of 1.08. Encompass Health has a one year low of $92.53 and a one year high of $127.99. The firm’s 50 day simple moving average is $103.94 and its 200 day simple moving average is $113.81. The company has a market cap of $10.72 billion, a PE ratio of 19.46, a P/E/G ratio of 2.09 and a beta of 0.71.

Encompass Health (NYSE:EHC) last issued its quarterly earnings results on Thursday, February 5th. The company reported $1.46 EPS for the quarter, topping analysts’ consensus estimates of $1.29 by $0.17. The company had revenue of $3.09 billion for 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%. Encompass Health’s revenue was up 9.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.17 earnings per share. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. On average, research analysts anticipate that Encompass Health will post 4.8 earnings per share for the current year.

Encompass Health Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st will be paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, April 1st. Encompass Health’s payout ratio 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.