Encompass Health (NYSE:EHC) Stock Rating Upgraded by Wall Street Zen

Encompass Health (NYSE:EHC) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued on Saturday, Wall Street Zen reports.

EHC has been the subject of a number of other research reports. Barclays upped their price objective on Encompass Health from $144.00 to $151.00 and gave the stock an “overweight” rating in a research note on Thursday. Raymond James Financial reaffirmed a “strong-buy” rating and set a $155.00 price objective 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. Weiss Ratings raised shares of Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Finally, Truist Financial reaffirmed a “buy” rating and set a $156.00 price objective (up from $150.00) on shares of Encompass Health in a research note on Friday. One equities research 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 stock. According to data from MarketBeat.com, Encompass Health presently has an average rating of “Buy” and an average target price of $154.14.

Encompass Health Trading Up 0.1%

Shares of NYSE:EHC opened at $136.09 on Friday. The business has a 50-day moving average price of $122.89 and a 200-day moving average price of $109.98. The company has a quick ratio of 1.19, a current ratio of 1.09 and a debt-to-equity ratio of 0.73. Encompass Health has a 52-week low of $92.77 and a 52-week high of $137.27. The stock has a market cap of $13.43 billion, a price-to-earnings ratio of 21.26, a PEG ratio of 2.55 and a beta of 0.83.

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

Insider Transactions at Encompass Health

In related news, CEO Mark Tarr sold 173,148 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were 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. This represents a 39.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP John Darby sold 8,906 shares of the company’s stock in a transaction on 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 in the company, valued at approximately $9,451,413.95. This represents a 10.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 186,912 shares of company stock worth $23,434,845 in the last quarter. 1.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Encompass Health

Institutional investors and hedge funds have recently made changes to their positions in the company. Transamerica Financial Advisors LLC bought a new stake in Encompass Health during the 2nd quarter worth approximately $29,000. Toth Financial Advisory Corp acquired a new stake in Encompass Health during the 3rd quarter worth approximately $38,000. Persistent Asset Partners Ltd purchased a new stake in shares of Encompass Health during the 2nd quarter worth $36,000. Keating Financial Advisory Services Inc. purchased a new position in Encompass Health in the 2nd quarter worth approximately $39,000. Finally, Root Financial Partners LLC bought a new stake in Encompass Health during the third quarter worth approximately $52,000. Institutional investors and hedge funds own 97.25% of the company’s stock.

Trending Headlines about 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.