Encompass Health (NYSE:EHC) Shares Break Above 50-Day Moving Average – Here’s What Happened

Shares of Encompass Health Corporation (NYSE:EHC) crossed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $122.58 and traded as high as $133.75. Encompass Health shares last traded at $131.7410, with a volume of 2,197,535 shares traded.

Key Stories Impacting Encompass Health

Here are the key news stories impacting Encompass Health this week:

• Positive Sentiment: Third-quarter adjusted earnings per share were $1.52, exceeding analyst expectations of $1.36–$1.38 and rising from $1.23 a year earlier. Revenue increased 8.9% year over year to $1.61 billion, slightly ahead of estimates. Encompass Health reports results for third quarter 2026
• Positive Sentiment: Adjusted EBITDA increased 15.5% to $346.6 million. Discharges rose 5.7%, same-store discharges grew 3.0%, and net patient revenue per discharge increased 4.0%, indicating broad operating momentum.
• Positive Sentiment: Management raised its full-year 2026 adjusted EPS guidance to $6.23–$6.37 from $6.02–$6.25. The higher forecast reinforces expectations for sustained earnings growth and was a key catalyst for the stock’s advance. Encompass Health climbs after Q3 results top expectations and guidance is raised
• Neutral Sentiment: Recent analyst price targets include $125 from TD Cowen and $140 from Barclays, with a reported median target of $132.50. The range suggests some upside potential but also indicates that valuation expectations are becoming important after the rally.
• Negative Sentiment: Insider trading data shows eight open-market sales and no purchases by company insiders over the past six months, including sales by the CEO and CFO. These transactions may temper investor enthusiasm, although they can also reflect scheduled or personal liquidity decisions.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the company. Barclays lifted their price target on Encompass Health from $144.00 to $151.00 and gave the company an “overweight” rating in a research note on Thursday. Wall Street Zen lowered Encompass Health from a “buy” rating to a “hold” rating in a report on Saturday, October 17th. TD Cowen increased their price objective on Encompass Health from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. Weiss Ratings raised Encompass Health from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Finally, Truist Financial boosted their target price 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 analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, Encompass Health currently has an average rating of “Buy” and an average target price of $149.67.

Encompass Health Stock Up 7.9%

The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.19. The company has a market capitalization of $13.00 billion, a price-to-earnings ratio of 20.58, a price-to-earnings-growth ratio of 2.47 and a beta of 0.74. The firm’s 50-day simple moving average is $122.58 and its two-hundred day simple moving average is $109.81.

Encompass Health (NYSE:EHC) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $1.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.16. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.60 billion. Encompass Health had a net margin of 10.17% and a return on equity of 18.62%. The company’s revenue for the quarter was up 8.9% on a year-over-year basis. During the same period last year, the firm earned $1.23 EPS. Sell-side analysts predict that Encompass Health Corporation will post 6.08 EPS for the current fiscal year.

Encompass Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Monday, January 4th will be paid a $0.21 dividend. This represents a $0.84 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Monday, January 4th. Encompass Health’s dividend payout ratio (DPR) is presently 13.68%.

Insider Buying and Selling at Encompass Health

In other Encompass Health news, CEO Mark Tarr sold 173,148 shares of the business’s stock in a transaction on 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 sale, the chief executive officer directly owned 267,814 shares in the company, valued at approximately $33,602,622.58. The trade was a 39.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 value 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 $9,451,413.95. This trade represents a 10.61% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 186,912 shares of company stock valued at $23,434,845. 1.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Encompass Health

Several hedge funds have recently added to or reduced their stakes in EHC. Transamerica Financial Advisors LLC purchased a new stake in shares of Encompass Health in the second quarter valued at about $29,000. Toth Financial Advisory Corp purchased a new position in shares of Encompass Health during the 3rd quarter worth approximately $38,000. Persistent Asset Partners Ltd purchased a new position in shares of Encompass Health during the 2nd quarter worth approximately $36,000. Keating Financial Advisory Services Inc. acquired a new position in shares of Encompass Health during the 2nd quarter worth approximately $39,000. Finally, Root Financial Partners LLC acquired a new position in shares of Encompass Health during the 3rd quarter worth approximately $52,000. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

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.