Encompass Health Corporation (NYSE:EHC) Receives $148.71 Average Price Target from Analysts

Encompass Health Corporation (NYSE:EHC) has been assigned an average rating of “Buy” from the nine analysts that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a hold recommendation, seven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $148.7143.

A number of equities research analysts have recently issued reports on the stock. TD Cowen upped their target price on shares of Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, August 10th. Truist Financial raised their price target on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. Barclays upped their price objective 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. Finally, UBS Group raised their target price on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research note on Friday, August 7th.

Insiders Place Their Bets

In other news, CEO Mark J. 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 owned 267,814 shares in the company, valued at $33,602,622.58. The trade was a 39.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP John Patrick Darby sold 8,906 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the completion of the sale, the executive vice president directly owned 75,041 shares of the company’s stock, valued at $9,451,413.95. This represents a 10.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

Institutional investors and hedge funds have recently bought and sold shares of the company. VELA Investment Management LLC increased its holdings in shares of Encompass Health by 53.6% during the 2nd quarter. VELA Investment Management LLC now owns 48,991 shares of the company’s stock worth $4,952,000 after buying an additional 17,105 shares during the last quarter. Corient Private Wealth LP lifted its holdings in Encompass Health by 8.7% in the second quarter. Corient Private Wealth LP now owns 16,988 shares of the company’s stock valued at $1,717,000 after acquiring an additional 1,358 shares during the last quarter. HighTower Advisors LLC grew its position in Encompass Health by 804.4% in the second quarter. HighTower Advisors LLC now owns 155,318 shares of the company’s stock worth $15,700,000 after acquiring an additional 138,145 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Encompass Health in the second quarter worth approximately $677,000. Finally, California State Teachers Retirement System increased its stake in Encompass Health by 9,758.8% during the second quarter. California State Teachers Retirement System now owns 11,605,197 shares of the company’s stock worth $1,173,053,000 after acquiring an additional 11,487,483 shares during the last quarter. 97.25% of the stock is currently owned by institutional investors and hedge funds.

Encompass Health Price Performance

Shares of Encompass Health stock opened at $119.58 on Friday. The stock has a market capitalization of $11.80 billion, a P/E ratio of 19.48, a PEG ratio of 2.45 and a beta of 0.72. The business has a 50 day simple moving average of $112.74 and a two-hundred day simple moving average of $107.08. Encompass Health has a 12 month low of $92.77 and a 12 month 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 issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%.The firm had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same period in the previous year, the business earned $1.40 earnings per share. The firm’s revenue for the quarter was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, analysts predict that Encompass Health will post 6.08 EPS for the current fiscal year.

Encompass Health Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be given a dividend of $0.21 per share. The ex-dividend date is Thursday, October 1st. This is a positive change from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. Encompass Health’s dividend payout ratio (DPR) is 12.38%.

Trending Headlines about 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.

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.