Encompass Health Corporation (NYSE:EHC) Receives $148.20 Average Target Price from Analysts

Encompass Health Corporation (NYSE:EHC) has earned an average recommendation of “Buy” from the seven brokerages that are currently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $148.20.

Several research firms recently weighed in on EHC. UBS Group lifted their target price on shares of Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a report on Friday, August 7th. Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, August 12th. 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. Truist Financial lifted their price objective on shares of Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Finally, Barclays upped their target price on shares of Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research note on Thursday, August 6th.

Encompass Health Stock Down 1.1%

EHC opened at $121.84 on Thursday. Encompass Health has a 1 year low of $92.77 and a 1 year high of $127.99. The firm has a 50 day moving average price of $118.44 and a 200 day moving average price of $108.60. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.19 and a current ratio of 1.19. The company has a market cap of $12.02 billion, a PE ratio of 19.84, a price-to-earnings-growth ratio of 2.47 and a beta of 0.75.

Encompass Health (NYSE:EHC) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The firm had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.57 billion. During the same period in the previous year, the company posted $1.40 earnings per share. Encompass Health’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. Sell-side analysts expect that Encompass Health will post 6.08 earnings per share for the current year.

Encompass Health Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be given a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, October 1st. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. Encompass Health’s dividend payout ratio is currently 12.38%.

Insider Activity

In related news, EVP John Darby sold 4,858 shares of the stock in a transaction dated 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 of the company’s stock, valued at approximately $9,086,714.69. This represents a 6.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Mark J. Tarr sold 173,148 shares of the firm’s stock in a transaction that occurred on 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 sale, the chief executive officer owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. This trade represents a 39.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 186,912 shares of company stock valued at $23,434,845 over the last 90 days. Insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in shares of Encompass Health in the second quarter worth $1,059,762,000. Geode Capital Management LLC boosted its stake in Encompass Health by 7.6% during the 4th quarter. Geode Capital Management LLC now owns 1,946,134 shares of the company’s stock valued at $206,605,000 after acquiring an additional 137,892 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Encompass Health by 3.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,674,784 shares of the company’s stock worth $162,013,000 after acquiring an additional 50,647 shares in the last quarter. Norges Bank acquired a new position in Encompass Health during the 4th quarter worth $133,221,000. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of Encompass Health by 1.6% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,182,574 shares of the company’s stock worth $114,390,000 after purchasing an additional 18,740 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

About Encompass Health

Encompass Health Corporation (NYSE:EHC) is a provider of post-acute healthcare services in the United States. The company operates inpatient rehabilitation hospitals that care for patients recovering from illness, injury, surgery or other medical conditions requiring intensive rehabilitation.

Its rehabilitation programs commonly serve patients recovering from strokes, brain and spinal cord injuries, neurological disorders, cardiac and pulmonary conditions, hip fractures, amputations and other orthopedic conditions.