Encompass Health (NYSE:EHC) Stock Rating Lowered by Wall Street Zen

Encompass Health (NYSE:EHC) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday, Wall Street Zen reports.

EHC has been the topic of several other research reports. TD Cowen boosted their target price on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, August 10th. UBS Group increased their price target on Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Truist Financial lifted their price target on Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 12th. Finally, Leerink Partners set a $152.00 price objective on Encompass Health in a report on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Encompass Health has a consensus rating of “Buy” and an average target price of $148.71.

Encompass Health Stock Performance

Shares of EHC opened at $121.80 on Friday. The firm has a market capitalization of $12.02 billion, a PE ratio of 19.84, a P/E/G ratio of 2.47 and a beta of 0.75. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.76. The firm has a 50-day moving average price of $115.33 and a 200 day moving average price of $107.57. Encompass Health has a 52-week low of $92.77 and a 52-week high of $127.99.

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

Insider Buying and Selling

In other news, CEO Mark J. Tarr sold 173,148 shares of the firm’s stock in a transaction on Monday, August 10th. The stock was 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 $33,602,622.58. This trade represents a 39.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP John Darby sold 4,858 shares of Encompass Health stock in a transaction on Monday, August 31st. The stock was sold at an average price of $121.09, for a total value of $588,255.22. Following the completion of the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,086,714.69. The trade was a 6.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 186,912 shares of company stock valued at $23,434,845 over the last 90 days. 1.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Encompass Health

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

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.