Encompass Health (NYSE:EHC) Stock Gets Downgrade from Wall Street Zen

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

A number of other equities research analysts have also issued reports on EHC. UBS Group upped their target price on shares of Encompass Health from $150.00 to $155.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Raymond James Financial set a $150.00 target price on shares of Encompass Health in a research report on Monday, September 28th. Barclays raised their price target on shares of Encompass Health from $140.00 to $144.00 and gave the stock an “overweight” rating in a research note on Thursday, August 6th. TD Cowen boosted their price target on shares of Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Finally, Truist Financial boosted their price target on shares of Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, Encompass Health currently has an average rating of “Buy” and an average target price of $148.50.

Encompass Health Stock Performance

Shares of NYSE:EHC opened at $127.69 on Friday. 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 has a 1 year low of $92.77 and a 1 year high of $129.96. The firm has a market capitalization of $12.60 billion, a PE ratio of 20.80, a P/E/G ratio of 2.59 and a beta of 0.74. The business’s 50 day moving average price is $122.51 and its 200-day moving average price is $111.66.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. The firm had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.57 billion. Encompass Health had a return on equity of 18.08% and a net margin of 10.01%. The firm’s revenue was up 9.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. As a group, equities research analysts expect that Encompass Health will post 6.08 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Encompass Health news, EVP John Darby sold 8,906 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $125.95, for a total transaction of $1,121,710.70. Following the transaction, the executive vice president owned 75,041 shares of the company’s stock, valued at approximately $9,451,413.95. The trade was a 10.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Mark J. Tarr sold 173,148 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $125.47, for a total value of $21,724,879.56. Following the completion of the sale, the chief executive officer owned 267,814 shares of the company’s stock, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 186,912 shares of company stock worth $23,434,845. 1.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of EHC. BlackRock Inc. purchased a new position in Encompass Health during the second quarter worth about $1,059,762,000. Dimensional Fund Advisors LP boosted its holdings in Encompass Health by 3.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,674,784 shares of the company’s stock valued at $162,013,000 after purchasing an additional 50,647 shares during the last quarter. William Blair Investment Management LLC purchased a new stake in shares of Encompass Health in the 2nd quarter valued at approximately $116,352,000. Arrowstreet Capital Limited Partnership grew its stake in shares of Encompass Health by 1.6% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,182,574 shares of the company’s stock valued at $114,390,000 after buying an additional 18,740 shares during the period. Finally, Copeland Capital Management LLC grew its stake in shares of Encompass Health by 16.8% in the 1st quarter. Copeland Capital Management LLC now owns 892,823 shares of the company’s stock valued at $86,363,000 after buying an additional 128,120 shares during the period. Hedge funds and other institutional investors own 97.25% of the company’s stock.

About Encompass Health

Encompass Health Corporation (NYSE:EHC) is a healthcare services company focused on inpatient rehabilitation. Through its network of rehabilitation hospitals, the company provides intensive medical and therapeutic care to patients recovering from conditions such as strokes, brain and spinal cord injuries, hip fractures, amputations, neurological disorders, and other disabling illnesses or injuries.

Its rehabilitation hospitals offer coordinated care from physicians, nurses, therapists, and other healthcare professionals.