KeyCorp Increases Earnings Estimates for Encompass Health

Encompass Health Corporation (NYSE:EHC) – Equities research analysts at KeyCorp upped their FY2026 earnings per share (EPS) estimates for shares of Encompass Health in a report issued on Thursday, October 29th. KeyCorp analyst M. Gillmor now forecasts that the company will earn $6.33 per share for the year, up from their prior forecast of $6.18. KeyCorp has an “Overweight” rating and a $150.00 price objective on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $6.28 per share. KeyCorp also issued estimates for Encompass Health’s Q4 2026 earnings at $1.65 EPS, Q1 2027 earnings at $1.66 EPS, Q2 2027 earnings at $1.74 EPS, Q3 2027 earnings at $1.64 EPS, Q4 2027 earnings at $1.75 EPS and FY2027 earnings at $6.80 EPS.

Encompass Health (NYSE:EHC) last posted its quarterly earnings data 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 for the quarter, compared to analyst estimates of $1.60 billion. Encompass Health had a net margin of 10.17% and a return on equity of 18.62%. The business’s quarterly revenue was up 8.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.23 earnings per share.

Other equities research analysts also recently issued research reports about the stock. Mizuho set a $155.00 price target on shares of Encompass Health in a research note on Monday. 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. UBS Group upped their price objective on shares of Encompass Health from $155.00 to $165.00 and gave the company a “buy” rating in a research report on Friday. Truist Financial restated a “buy” rating and set a $156.00 target price (up from $150.00) on shares of Encompass Health in a research note on Friday. Finally, Wall Street Zen raised Encompass Health from a “hold” rating to a “buy” rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Encompass Health has an average rating of “Buy” and an average price target of $154.25.

Encompass Health Price Performance

Shares of EHC stock opened at $137.28 on Monday. The company has a market capitalization of $13.54 billion, a PE ratio of 21.45, a price-to-earnings-growth ratio of 2.47 and a beta of 0.74. The firm has a fifty day simple moving average of $123.23 and a 200-day simple moving average of $110.17. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.76. Encompass Health has a twelve month low of $92.77 and a twelve month high of $138.35.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Gamco Investors INC. ET AL lifted its holdings in Encompass Health by 2.0% in the first quarter. Gamco Investors INC. ET AL now owns 4,813 shares of the company’s stock worth $466,000 after purchasing an additional 94 shares during the period. GAMMA Investing LLC increased its stake in shares of Encompass Health by 2.7% during the second quarter. GAMMA Investing LLC now owns 3,969 shares of the company’s stock valued at $401,000 after acquiring an additional 106 shares during the period. Childress Capital Advisors LLC raised its holdings in Encompass Health by 5.1% during the third quarter. Childress Capital Advisors LLC now owns 2,189 shares of the company’s stock worth $266,000 after purchasing an additional 106 shares in the last quarter. Versant Capital Management Inc raised its holdings in Encompass Health by 21.8% during the second quarter. Versant Capital Management Inc now owns 720 shares of the company’s stock worth $73,000 after purchasing an additional 129 shares in the last quarter. Finally, QRG Capital Management Inc. lifted its position in Encompass Health by 1.5% in the first quarter. QRG Capital Management Inc. now owns 8,639 shares of the company’s stock worth $836,000 after purchasing an additional 130 shares during the period. Institutional investors own 97.25% of the company’s stock.

Insider Transactions at Encompass Health

In related news, CEO Mark Tarr sold 173,148 shares of the 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 sale, 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP John Darby sold 4,858 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $121.09, for a total value of $588,255.22. Following the sale, the executive vice president owned 75,041 shares in the company, valued at $9,086,714.69. The trade was a 6.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 186,912 shares of company stock valued at $23,434,845. Insiders own 1.80% of the company’s stock.

Encompass Health Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Monday, January 4th will be paid a dividend of $0.21 per share. The ex-dividend date is Monday, January 4th. This represents a $0.84 annualized dividend and a yield of 0.6%. Encompass Health’s payout ratio is presently 13.12%.

About Encompass Health

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.