KeyCorp Expects Stronger Earnings for Encompass Health

Encompass Health Corporation (NYSE:EHC) – KeyCorp increased their FY2026 earnings per share estimates for shares of Encompass Health in a research report issued on Thursday, October 29th. KeyCorp analyst M. Gillmor now forecasts that the company will post earnings per share of $6.33 for the year, up from their previous estimate of $6.18. KeyCorp currently has an “Overweight” rating and a $150.00 target price on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $6.29 per share. KeyCorp also issued estimates for Encompass Health’s Q4 2026 earnings at $1.65 EPS, Q1 2027 earnings at $1.66 EPS, Q2 2027 earnings at $1.74 EPS, Q3 2027 earnings at $1.64 EPS, Q4 2027 earnings at $1.75 EPS and FY2027 earnings at $6.80 EPS.

EHC has been the topic of several other reports. Truist Financial reissued a “buy” rating and set a $156.00 target price (up from $150.00) on shares of Encompass Health in a research note on Friday. UBS Group lifted their price target on shares of Encompass Health from $155.00 to $165.00 and gave the company a “buy” rating in a research note on Friday. Wall Street Zen raised shares of Encompass Health from a “hold” rating to a “buy” rating in a research report on Saturday. Barclays raised their target price on Encompass Health from $144.00 to $151.00 and gave the company an “overweight” rating in a research note on Thursday, October 29th. Finally, TD Cowen boosted their target price on Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, October 30th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $154.25.

Encompass Health Stock Performance

NYSE:EHC opened at $135.18 on Monday. The company has a quick ratio of 1.19, a current ratio of 1.09 and a debt-to-equity ratio of 0.73. Encompass Health has a twelve month low of $92.77 and a twelve month high of $139.12. The company has a fifty day moving average of $123.51 and a 200-day moving average of $110.34. The firm has a market capitalization of $13.34 billion, a P/E ratio of 21.12, a P/E/G ratio of 2.38 and a beta of 0.83.

Encompass Health (NYSE:EHC) last announced its earnings results on Wednesday, October 28th. The company reported $1.52 EPS for the quarter, beating the consensus estimate of $1.36 by $0.16. Encompass Health had a return on equity of 18.35% and a net margin of 10.17%. The company had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the prior year, the company earned $1.23 EPS. The firm’s revenue for the quarter was up 8.9% compared to the same quarter last year.

Encompass Health Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Monday, January 4th will be paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Monday, January 4th. Encompass Health’s payout ratio is 13.12%.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, EVP John Darby sold 8,906 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the transaction, the executive vice president owned 75,041 shares in the company, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Mark Tarr sold 173,148 shares of the firm’s stock in a transaction on 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 transaction, the chief executive officer directly owned 267,814 shares in the company, valued at $33,602,622.58. This trade represents a 39.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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

Large investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in Encompass Health during the second quarter valued at $1,059,762,000. William Blair Investment Management LLC purchased a new stake in Encompass Health in the second quarter worth $116,352,000. Bank of New York Mellon Corp bought a new stake in shares of Encompass Health in the second quarter valued at $81,676,000. Bank of America Corp DE bought a new stake in shares of Encompass Health in the second quarter valued at $79,660,000. Finally, Freestone Grove Partners LP bought a new stake in shares of Encompass Health in the second quarter valued at $38,677,000. Institutional investors own 97.25% of the company’s stock.

About Encompass Health

Encompass Health Corporation (NYSE:EHC) is a healthcare services company that operates inpatient rehabilitation hospitals in the United States and Puerto Rico. Its hospitals provide intensive rehabilitation to patients recovering from conditions such as stroke, brain and spinal cord injuries, neurological disorders, amputations, hip fractures and other serious illnesses or injuries.

The company’s services typically include nursing care, physical therapy, occupational therapy, speech and language therapy, respiratory therapy and medical management.