Encompass Health (NYSE:EHC) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen lowered shares of Encompass Health (NYSE:EHC) 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 subject of several other research reports. UBS Group lifted their price target on Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Truist Financial increased their price objective on Encompass Health from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Barclays raised their price objective on Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. TD Cowen boosted their target price on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Finally, Weiss Ratings raised Encompass Health from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, August 12th. One research 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 company. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $148.71.

Encompass Health Price Performance

EHC stock opened at $121.80 on Friday. The firm has a 50 day simple moving average of $115.33 and a two-hundred day simple moving average of $107.58. The stock has a market cap of $12.02 billion, a PE ratio of 19.84, a P/E/G ratio of 2.47 and a beta of 0.75. Encompass Health has a one year low of $92.77 and a one year 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 posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate 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 quarter last year, the company posted $1.40 EPS. The business’s quarterly revenue was up 9.6% on a year-over-year basis. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, 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. Stockholders of record on Thursday, October 1st will be paid a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from Encompass Health’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Thursday, October 1st. Encompass Health’s payout ratio is 12.38%.

Insider Activity

In related news, CEO Mark J. Tarr sold 173,148 shares of the stock in a transaction dated 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 in the company, valued at $33,602,622.58. This represents a 39.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP John Darby sold 8,906 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The stock was 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 approximately $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 186,912 shares of company stock worth $23,434,845. Company insiders own 1.80% of the company’s stock.

Institutional Trading of Encompass Health

A number of institutional investors have recently made changes to their positions in EHC. Transamerica Financial Advisors LLC bought a new position in shares of Encompass Health in the second quarter worth approximately $29,000. Persistent Asset Partners Ltd bought a new stake in Encompass Health during the 2nd quarter valued at $36,000. Keating Financial Advisory Services Inc. purchased a new stake in Encompass Health during the 2nd quarter valued at $39,000. Assetmark Inc. grew its holdings in Encompass Health by 89.6% in the 1st quarter. Assetmark Inc. now owns 455 shares of the company’s stock worth $44,000 after acquiring an additional 215 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its holdings in Encompass Health by 36,200.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock worth $46,000 after acquiring an additional 362 shares during the last quarter. Hedge funds and other institutional investors 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.