Short Interest in Encompass Health Corporation (NYSE:EHC) Grows By 23.8%

Encompass Health Corporation (NYSE:EHC) was the target of a large growth in short interest in the month of January. As of January 30th, there was short interest totaling 4,301,775 shares, a growth of 23.8% from the January 15th total of 3,473,650 shares. Approximately 4.4% of the company’s shares are short sold. Based on an average daily volume of 1,156,420 shares, the short-interest ratio is currently 3.7 days. Based on an average daily volume of 1,156,420 shares, the short-interest ratio is currently 3.7 days. Approximately 4.4% of the company’s shares are short sold.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on EHC shares. Zacks Research lowered shares of Encompass Health from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 19th. Barclays increased their price objective on Encompass Health from $150.00 to $153.00 and gave the stock an “overweight” rating in a report on Friday, February 6th. Raymond James Financial raised Encompass Health to a “strong-buy” rating in a research note on Friday, October 31st. Finally, Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $143.29.

Encompass Health Stock Down 0.6%

Shares of NYSE EHC traded down $0.71 during mid-day trading on Wednesday, hitting $108.83. 253,774 shares of the stock traded hands, compared to its average volume of 1,449,660. The stock has a fifty day moving average price of $103.92 and a 200-day moving average price of $114.57. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.14 and a current ratio of 1.08. The company has a market cap of $10.95 billion, a price-to-earnings ratio of 19.64, a PEG ratio of 2.10 and a beta of 0.73. Encompass Health has a 52 week low of $92.53 and a 52 week high of $127.99.

Encompass Health (NYSE:EHC) last released its earnings results on Thursday, February 5th. The company reported $1.46 earnings per share for the quarter, topping analysts’ consensus estimates of $1.29 by $0.17. Encompass Health had a net margin of 9.54% and a return on equity of 18.20%. The firm had revenue of $3.09 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same period in the prior year, the firm earned $1.17 EPS. The company’s revenue was up 9.9% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. Research analysts anticipate that Encompass Health will post 4.8 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Mark J. Tarr sold 150,000 shares of the firm’s stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $111.64, for a total value of $16,746,000.00. Following the transaction, the chief executive officer owned 377,070 shares in the company, valued at approximately $42,096,094.80. This trade represents a 28.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Encompass Health

A number of hedge funds have recently bought and sold shares of EHC. Thrivent Financial for Lutherans grew its holdings in shares of Encompass Health by 57.8% in the third quarter. Thrivent Financial for Lutherans now owns 1,194,859 shares of the company’s stock worth $151,544,000 after acquiring an additional 437,464 shares during the period. Ethic Inc. purchased a new stake in shares of Encompass Health in the third quarter worth $1,272,000. Jennison Associates LLC raised its holdings in Encompass Health by 12.8% during the third quarter. Jennison Associates LLC now owns 894,511 shares of the company’s stock valued at $113,621,000 after acquiring an additional 101,274 shares during the period. Marshall Wace LLP purchased a new position in Encompass Health in the 2nd quarter worth approximately $34,719,000. Finally, Braun Stacey Associates Inc. boosted its position in shares of Encompass Health by 9.3% during the third quarter. Braun Stacey Associates Inc. now owns 223,673 shares of the company’s stock worth $28,411,000 after acquiring an additional 18,967 shares during the last quarter. Institutional investors own 97.25% of the company’s stock.

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.