Encompass Health (NYSE:EHC) Upgraded by Wall Street Zen to “Buy” Rating

Wall Street Zen upgraded shares of Encompass Health (NYSE:EHC) from a hold rating to a buy rating in a research note released on Saturday morning.

Separately, Barclays raised their target price 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. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, Encompass Health presently has an average rating of “Buy” and a consensus target price of $146.33.

Encompass Health Stock Up 7.5%

EHC stock opened at $107.48 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. The firm has a market capitalization of $10.69 billion, a PE ratio of 17.94, a P/E/G ratio of 2.06 and a beta of 0.72. The company’s 50 day simple moving average is $103.05 and its 200-day simple moving average is $107.56. Encompass Health has a 12 month low of $92.77 and a 12 month high of $127.99.

Encompass Health (NYSE:EHC) last announced its earnings results on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.54%. The firm had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.57 billion. During the same quarter last year, the business earned $1.37 earnings per share. Encompass Health’s revenue was up 9.0% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Equities analysts expect that Encompass Health will post 5.99 earnings per share for the current fiscal year.

Encompass Health Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Wednesday, April 1st were given a dividend of $0.19 per share. The ex-dividend date was Wednesday, April 1st. This represents a $0.76 dividend on an annualized basis and a yield of 0.7%. Encompass Health’s dividend payout ratio (DPR) is 12.69%.

Insider Buying and Selling

In other Encompass Health news, CEO Mark J. Tarr sold 150,000 shares of Encompass Health stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total value of $16,746,000.00. Following the transaction, the chief executive officer owned 377,070 shares in the company, valued at $42,096,094.80. This trade represents a 28.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Treasurer Edmund Fay sold 11,937 shares of Encompass Health stock in a transaction on Monday, March 9th. The shares were sold at an average price of $107.00, for a total transaction of $1,277,259.00. Following the completion of the transaction, the treasurer owned 89,325 shares in the company, valued at approximately $9,557,775. This trade represents a 11.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

A number of hedge funds have recently made changes to their positions in EHC. Royal Bank of Canada boosted its holdings in shares of Encompass Health by 21.5% in the 1st quarter. Royal Bank of Canada now owns 88,470 shares of the company’s stock valued at $8,960,000 after purchasing an additional 15,677 shares during the last quarter. Millennium Management LLC boosted its holdings in shares of Encompass Health by 38.4% in the 1st quarter. Millennium Management LLC now owns 92,197 shares of the company’s stock valued at $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 in the 1st quarter valued at $259,000. Walleye Capital LLC boosted its holdings in shares of Encompass Health by 667.6% in the 2nd quarter. Walleye Capital LLC now owns 6,522 shares of the company’s stock valued at $800,000 after purchasing an additional 7,671 shares during the last quarter. Finally, Gamco Investors INC. ET AL acquired a new position in shares of Encompass Health in the 2nd quarter valued at $588,000. Institutional investors and hedge funds own 97.25% of the company’s stock.

Encompass Health News Roundup

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

• Positive Sentiment: Q1 results beat expectations — Encompass reported revenue of about $1.59B (+9% YoY) and EPS of $1.60, topping consensus and showing solid margin and profitability improvements. Encompass Health (EHC) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Company raised FY?2026 outlook — management updated full?year EPS guidance to a range of 5.890–6.110 and increased revenue guidance (roughly $6.4–6.5B), signaling confidence in the recovery/hospital business. Encompass Health reports results for first quarter 2026
• Positive Sentiment: Underlying operating strength — company metrics cited in releases include healthy ROE (~18.2%), improved net margins and solid operating cash flow, supporting the earnings beat and guidance lift. Encompass Health reports results for first quarter 2026 (Finanznachrichten)
• Neutral Sentiment: Management commentary and detail — the Q1 earnings call transcript provides additional color on volumes, payor dynamics and capital allocation that investors may parse for sustainability of growth. EHC Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Wide media coverage — outlets summarized the beat + guidance and amplified the stock move; useful for understanding market momentum but not new fundamental data. Encompass Health (EHC) shares skyrocket, what you need to know
• Negative Sentiment: Insider selling highlighted — filings and coverage show multiple insider sales (including sales by senior executives) in recent months, which can be perceived as a governance/headwind signal by some investors. Encompass Health Corporation (EHC) Stock Falls on Q1 2026 Earnings

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.