10,340 Shares in Encompass Health Corporation $EHC Bought by Formula Growth Ltd.

Formula Growth Ltd. acquired a new position in shares of Encompass Health Corporation (NYSE:EHC) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 10,340 shares of the company’s stock, valued at approximately $1,045,000.

Several other institutional investors have also modified their holdings of EHC. Transamerica Financial Advisors LLC purchased a new stake in shares of Encompass Health during the second quarter worth about $29,000. Persistent Asset Partners Ltd purchased a new position in Encompass Health in the 2nd quarter valued at about $36,000. Keating Financial Advisory Services Inc. acquired a new stake in Encompass Health in the 2nd quarter worth about $39,000. Assetmark Inc. increased its stake in Encompass Health by 89.6% during the 1st quarter. Assetmark Inc. now owns 455 shares of the company’s stock worth $44,000 after buying an additional 215 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its stake in Encompass Health by 36,200.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock worth $46,000 after buying an additional 362 shares in the last quarter. Institutional investors and hedge funds own 97.25% of the company’s stock.

Key Headlines Impacting Encompass Health

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Zacks raised its FY2026 EPS forecast to $6.03 from $5.96, increased FY2027 EPS to $6.42 from $6.35, and lifted FY2028 EPS to $7.18 from $7.16. The revisions indicate analysts continue to expect earnings growth over the next several years. Encompass Health analyst estimates
• Positive Sentiment: Quarterly estimates were also raised for Q1 2027, to $1.65 EPS from $1.63; Q2 2027, to $1.64 from $1.60; Q3 2027, to $1.49 from $1.48; and Q2 2028, to $1.87 from $1.84. These increases modestly improve the longer-term earnings outlook.
• Neutral Sentiment: Zacks’ FY2026 forecast of $6.03 remains slightly below the broader analyst consensus of approximately $6.08-$6.09 per share. This indicates that the revisions are constructive overall but do not represent a major upside surprise.
• Negative Sentiment: Zacks reduced its Q3 2026 EPS estimate to $1.35 from $1.36, Q4 2026 EPS to $1.53 from $1.55, and Q1 2028 EPS to $1.77 from $1.80. Lower near-term estimates could weigh on the stock because they point to slightly softer earnings momentum in upcoming reporting periods.

Insiders Place Their Bets

In related news, CEO Mark J. 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 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 approximately $33,602,622.58. This represents a 39.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP John Patrick Darby sold 8,906 shares of the firm’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the sale, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is owned by company insiders.

Encompass Health Trading Down 1.0%

EHC opened at $119.58 on Friday. The firm has a market capitalization of $11.80 billion, a price-to-earnings ratio of 19.48, a price-to-earnings-growth ratio of 2.45 and a beta of 0.72. The company’s 50 day simple moving average is $112.74 and its two-hundred day simple moving average is $107.08. Encompass Health Corporation has a 1-year low of $92.77 and a 1-year high of $127.99. 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 (NYSE:EHC) last posted its quarterly 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 business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.57 billion. During the same period in the prior year, the business earned $1.40 earnings per share. The business’s revenue was up 9.6% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. Analysts expect that Encompass Health Corporation will post 6.08 EPS for the current fiscal year.

Encompass Health Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be issued a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.7%. The ex-dividend date is 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 12.38%.

Analyst Ratings Changes

EHC has been the topic of several research reports. Leerink Partners set a $152.00 target price on Encompass Health in a research report on Friday, May 22nd. TD Cowen boosted their price target on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, August 16th. Barclays raised 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. Finally, Truist Financial upped 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 research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, Encompass Health presently has an average rating of “Buy” and an average target price of $148.71.

Encompass Health Company Profile

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.