Encompass Health (NYSE:EHC) Lowered to “Hold” Rating by Wall Street Zen

Wall Street Zen cut shares of Encompass Health (NYSE:EHC) from a buy rating to a hold rating in a report released on Saturday.

A number of other research firms have also recently commented on EHC. TD Cowen initiated coverage on shares of Encompass Health in a research note on Thursday, May 28th. They set a “buy” rating and a $125.00 target price for the company. Weiss Ratings cut Encompass Health from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, June 26th. Truist Financial boosted their price objective on Encompass Health from $140.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday. UBS Group increased their target price on Encompass Health from $150.00 to $155.00 and gave the company a “buy” rating in a report on Friday. Finally, Barclays raised their target price on Encompass Health from $140.00 to $144.00 and gave the company an “overweight” rating in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $146.57.

Encompass Health Trading Up 0.5%

Shares of EHC stock opened at $125.39 on Friday. Encompass Health has a 1-year low of $92.77 and a 1-year high of $127.99. The company has a market cap of $12.44 billion, a price-to-earnings ratio of 20.42, a PEG ratio of 2.68 and a beta of 0.72. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.19 and a quick ratio of 1.17. The stock has a 50 day simple moving average of $106.91 and a 200-day simple moving average of $104.59.

Encompass Health (NYSE:EHC) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. The firm had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.57 billion. Encompass Health had a net margin of 10.01% and a return on equity of 18.08%. The firm’s revenue for the quarter was up 9.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.40 EPS. Encompass Health has set its FY 2026 guidance at 6.020-6.250 EPS. On average, equities research analysts expect that Encompass Health will post 6.07 EPS for the current fiscal year.

Encompass Health Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be given a dividend of $0.21 per share. The ex-dividend date is Thursday, October 1st. This is a boost from Encompass Health’s previous quarterly dividend of $0.19. This represents a $0.84 dividend on an annualized basis and a yield of 0.7%. Encompass Health’s dividend payout ratio (DPR) is presently 12.69%.

Insider Transactions at Encompass Health

In other Encompass Health news, EVP Patrick William Tuer sold 682 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $104.56, for a total value of $71,309.92. Following the completion of the sale, the executive vice president owned 24,755 shares in the company, valued at approximately $2,588,382.80. This represents a 2.68% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

A number of large investors have recently made changes to their positions in EHC. WPG Advisers LLC boosted its stake in Encompass Health by 73.3% during the fourth quarter. WPG Advisers LLC now owns 324 shares of the company’s stock worth $34,000 after buying an additional 137 shares during the last quarter. Flagship Harbor Advisors LLC acquired a new stake in shares of Encompass Health in the 4th quarter worth $37,000. Persistent Asset Partners Ltd acquired a new stake in shares of Encompass Health in the 2nd quarter worth $36,000. Caitong International Asset Management Co. Ltd raised its holdings in shares of Encompass Health by 36,200.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 363 shares of the company’s stock worth $46,000 after acquiring an additional 362 shares during the period. Finally, Assetmark Inc. boosted its position in shares of Encompass Health by 89.6% during the 1st quarter. Assetmark Inc. now owns 455 shares of the company’s stock valued at $44,000 after acquiring an additional 215 shares during the last quarter. 97.25% of the stock is currently owned by hedge funds and other institutional investors.

About Encompass Health

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.