Encompass Health (NYSE:EHC) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Encompass Health (NYSE:EHC) released its quarterly earnings results on Wednesday. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07, FiscalAI reports. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period last year, the business posted $1.40 earnings per share. The company’s quarterly revenue was up 9.6% on a year-over-year basis. Encompass Health updated its FY 2026 guidance to 6.020-6.250 EPS.

Encompass Health Stock Up 0.0%

NYSE:EHC traded up $0.05 during midday trading on Wednesday, reaching $110.55. The company had a trading volume of 1,306,323 shares, compared to its average volume of 868,107. Encompass Health has a 12-month low of $92.77 and a 12-month high of $127.99. The firm has a market capitalization of $10.97 billion, a price-to-earnings ratio of 18.46, a PEG ratio of 2.41 and a beta of 0.72. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. The stock’s fifty day simple moving average is $106.01 and its 200-day simple moving average is $104.22.

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 0.8%. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date is Thursday, October 1st. Encompass Health’s dividend payout ratio (DPR) is 12.69%.

Insiders Place Their Bets

In other news, EVP Patrick William Tuer sold 682 shares of Encompass Health stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $104.56, for a total value of $71,309.92. Following the completion of the transaction, the executive vice president owned 24,755 shares in the company, valued at approximately $2,588,382.80. This trade represents a 2.68% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 1.80% of the stock is currently owned by company insiders.

Institutional Trading of Encompass Health

Several hedge funds have recently added to or reduced their stakes in EHC. Royal Bank of Canada grew its holdings in Encompass Health by 21.5% during the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock worth $8,960,000 after acquiring an additional 15,677 shares in the last quarter. Millennium Management LLC lifted its position in shares of Encompass Health by 38.4% during the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock worth $9,338,000 after purchasing an additional 25,574 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of Encompass Health during the first quarter worth $259,000. Walleye Capital LLC grew its stake in shares of Encompass Health by 667.6% during the second quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock worth $800,000 after purchasing an additional 7,671 shares in the last quarter. Finally, Gamco Investors INC. ET AL purchased a new position in Encompass Health in the second quarter valued at $588,000. Institutional investors and hedge funds own 97.25% of the company’s stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on EHC shares. TD Cowen started coverage on Encompass Health in a research note on Thursday, May 28th. They set a “buy” rating and a $125.00 target price on the stock. Leerink Partners set a $152.00 target price on Encompass Health in a research report on Friday, May 22nd. Barclays cut their price target on shares of Encompass Health from $153.00 to $140.00 and set an “overweight” rating on the stock in a research note on Tuesday, May 5th. Weiss Ratings cut shares of Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. Finally, Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $143.86.

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.