Encompass Health Corporation (NYSE:EHC) Receives $143.29 Average Price Target from Analysts

Shares of Encompass Health Corporation (NYSE:EHC) have been given a consensus rating of “Buy” by the ten analysts that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a hold recommendation, seven have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $143.2857.

A number of research firms have recently commented on EHC. Barclays boosted their price target on Encompass Health from $150.00 to $153.00 and gave the stock an “overweight” rating in a report on Friday, February 6th. Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. Finally, Zacks Research downgraded shares of Encompass Health from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th.

Encompass Health Price Performance

Encompass Health stock opened at $107.94 on Friday. The firm has a market cap of $10.73 billion, a PE ratio of 19.48, a price-to-earnings-growth ratio of 2.07 and a beta of 0.71. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.08 and a quick ratio of 1.08. The stock’s fifty day moving average price is $103.89 and its two-hundred day moving average price is $113.88. Encompass Health has a one year low of $92.53 and a one year 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 (EPS) for the quarter, topping the consensus estimate of $1.29 by $0.17. The company had revenue of $3.09 billion for the quarter, compared to analyst estimates of $1.54 billion. Encompass Health had a return on equity of 18.20% and a net margin of 9.54%.Encompass Health’s quarterly revenue was up 9.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.17 EPS. Encompass Health has set its FY 2026 guidance at 5.810-6.100 EPS. As a group, research analysts expect that Encompass Health will post 4.8 EPS for the current fiscal year.

Encompass Health Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st will be paid a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, April 1st. Encompass Health’s payout ratio is presently 13.72%.

Insider Activity

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

Hedge Funds Weigh In On Encompass Health

A number of institutional investors and hedge funds have recently bought and sold shares of EHC. Thrivent Financial for Lutherans grew its stake 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 purchasing an additional 437,464 shares during the last quarter. Ethic Inc. acquired a new position in Encompass Health during the 3rd quarter worth about $1,272,000. Jennison Associates LLC grew its position in shares of Encompass Health by 12.8% in the 3rd quarter. Jennison Associates LLC now owns 894,511 shares of the company’s stock valued at $113,621,000 after buying an additional 101,274 shares during the last quarter. Marshall Wace LLP acquired a new stake in shares of Encompass Health in the second quarter valued at about $34,719,000. Finally, AlphaQuest LLC increased its stake in shares of Encompass Health by 170.9% in the third quarter. AlphaQuest LLC now owns 29,916 shares of the company’s stock valued at $3,800,000 after buying an additional 18,874 shares during the period. Institutional investors and hedge funds 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.