Encompass Health (NYSE:EHC) Upgraded to Buy at Wall Street Zen

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

EHC has been the topic of a number of other reports. Barclays raised their price target on Encompass Health from $144.00 to $151.00 and gave the stock an “overweight” rating in a research note on Thursday. UBS Group reiterated a “buy” rating and set a $165.00 price objective on shares of Encompass Health in a research report on Friday. Truist Financial reissued a “buy” rating and issued a $156.00 target price (up from $150.00) on shares of Encompass Health in a report on Friday. KeyCorp raised their target price on Encompass Health from $147.00 to $150.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Weiss Ratings raised Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Encompass Health has a consensus rating of “Buy” and a consensus price target of $154.14.

Encompass Health Price Performance

Shares of NYSE:EHC opened at $136.09 on Friday. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.19 and a current ratio of 1.09. The firm has a market cap of $13.43 billion, a price-to-earnings ratio of 21.26, a price-to-earnings-growth ratio of 2.66 and a beta of 0.74. The business has a 50-day simple moving average of $122.89 and a two-hundred day simple moving average of $109.98. Encompass Health has a fifty-two week low of $92.77 and a fifty-two week high of $137.27.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.16. Encompass Health had a net margin of 10.17% and a return on equity of 18.35%. The firm had revenue of $1.61 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter last year, the firm posted $1.23 EPS. The business’s quarterly revenue was up 8.9% compared to the same quarter last year. On average, analysts expect that Encompass Health will post 6.28 earnings per share for the current year.

Encompass Health Dividend Announcement

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

Insiders Place Their Bets

In related news, CEO Mark Tarr sold 173,148 shares of Encompass Health 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 transaction, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP John Darby sold 8,906 shares of Encompass Health stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.95, for a total value of $1,121,710.70. Following the transaction, the executive vice president owned 75,041 shares in the company, valued at $9,451,413.95. This trade represents a 10.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 186,912 shares of company stock worth $23,434,845. 1.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Encompass Health

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in Encompass Health in the second quarter valued at $1,059,762,000. William Blair Investment Management LLC purchased a new position in shares of Encompass Health in the 2nd quarter valued at about $116,352,000. Bank of New York Mellon Corp purchased a new position in shares of Encompass Health in the 2nd quarter valued at about $81,676,000. Bank of America Corp DE purchased a new position in shares of Encompass Health in the 2nd quarter valued at about $79,660,000. Finally, Freestone Grove Partners LP acquired a new position in Encompass Health in the 2nd quarter worth about $38,677,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Encompass Health

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

• Positive Sentiment: Q3 results exceeded expectations: Encompass Health reported adjusted earnings of $1.52 per share, above the $1.36 consensus estimate and up from $1.23 a year earlier. Revenue rose 8.9% year over year to $1.61 billion, while adjusted EBITDA increased 15.5% to $346.6 million. Encompass Health Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 adjusted EPS of $6.23 to $6.37, above the prior range of $6.02 to $6.25 and higher than the $6.11 analyst consensus. Revenue guidance remains approximately $6.5 billion. Encompass Health Climbs After Q3 Results Top Expectations and Guidance Is Raised
• Positive Sentiment: Patient-care metrics remained healthy: Quarterly discharges increased 5.7%, same-store discharges rose 3.0%, and net patient revenue per discharge improved 4.0%, supporting the view that demand for inpatient rehabilitation services remains strong. Encompass Health Q3 2026 Earnings Call Transcript
• Positive Sentiment: TD Cowen became more bullish: The firm raised its price target from $140 to $150 and assigned a “Buy” rating, implying further upside based on the referenced share price. TD Cowen Raises Encompass Health Price Target
• Neutral Sentiment: Valuation commentary was favorable: Zacks identified EHC as a strong value stock, although the report appears to be based primarily on its quantitative Style Scores rather than a new fundamental development. Why Encompass Health Is a Strong Value Stock
• Negative Sentiment: Insider selling is a watchpoint: Recent data shows company insiders made no open-market purchases and sold shares during the past six months. These transactions may reflect diversification or planned selling, but they provide a modest counterpoint to the otherwise positive earnings news. Encompass Health Insider Trading and Earnings Analysis

Encompass Health Company Profile

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.