Research Analysts Set Expectations for EHC FY2026 Earnings

Encompass Health Co. (NYSE:EHC) – Investment analysts at Leerink Partnrs boosted their FY2026 earnings per share estimates for shares of Encompass Health in a note issued to investors on Wednesday, October 30th. Leerink Partnrs analyst W. Mayo now forecasts that the company will earn $5.00 per share for the year, up from their previous forecast of $4.71. Leerink Partnrs has a “Strong-Buy” rating on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $4.28 per share.

A number of other research firms also recently issued reports on EHC. Leerink Partners began coverage on shares of Encompass Health in a research note on Wednesday, July 10th. They set an “outperform” rating and a $100.00 price objective on the stock. Truist Financial reaffirmed a “buy” rating and issued a $116.00 price objective (up previously from $108.00) on shares of Encompass Health in a research report on Wednesday, October 30th. Barclays increased their target price on shares of Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a research report on Tuesday, October 29th. KeyCorp upped their price target on Encompass Health from $115.00 to $117.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 29th. Finally, Stephens restated an “overweight” rating and set a $105.00 target price on shares of Encompass Health in a research note on Tuesday, August 6th. Nine research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $107.11.

Encompass Health Stock Up 1.0 %

NYSE:EHC opened at $101.27 on Monday. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.04 and a quick ratio of 1.35. The firm has a market cap of $10.19 billion, a PE ratio of 24.48, a price-to-earnings-growth ratio of 1.31 and a beta of 0.88. The company has a 50-day moving average of $94.66 and a 200 day moving average of $89.09. Encompass Health has a 1-year low of $62.58 and a 1-year high of $102.36.

Encompass Health (NYSE:EHC) last posted its quarterly earnings results on Monday, October 28th. The company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.09. Encompass Health had a net margin of 8.10% and a return on equity of 17.60%. The firm had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.33 billion. During the same period in the prior year, the business posted $0.86 earnings per share. The business’s revenue for the quarter was up 11.9% on a year-over-year basis.

Encompass Health announced that its board has approved a share repurchase program on Wednesday, July 24th that authorizes the company to buyback $500.00 million in shares. This buyback authorization authorizes the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Encompass Health Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Thursday, January 2nd will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.67%. The ex-dividend date is Thursday, January 2nd. Encompass Health’s dividend payout ratio is presently 16.43%.

Insider Transactions at Encompass Health

In related news, CFO Douglas E. Coltharp sold 12,260 shares of the stock in a transaction that occurred on Tuesday, August 13th. The shares were sold at an average price of $86.34, for a total value of $1,058,528.40. Following the transaction, the chief financial officer now owns 136,227 shares in the company, valued at approximately $11,761,839.18. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 2.10% of the company’s stock.

Institutional Investors Weigh In On Encompass Health

Several hedge funds have recently added to or reduced their stakes in the business. Commonwealth Equity Services LLC grew its holdings in Encompass Health by 1.3% in the second quarter. Commonwealth Equity Services LLC now owns 9,845 shares of the company’s stock valued at $845,000 after purchasing an additional 123 shares during the period. V Square Quantitative Management LLC grew its stake in Encompass Health by 53.0% in the 3rd quarter. V Square Quantitative Management LLC now owns 404 shares of the company’s stock valued at $39,000 after acquiring an additional 140 shares during the period. O Shaughnessy Asset Management LLC increased its holdings in Encompass Health by 3.9% in the 1st quarter. O Shaughnessy Asset Management LLC now owns 4,246 shares of the company’s stock worth $351,000 after acquiring an additional 160 shares in the last quarter. Verdence Capital Advisors LLC raised its position in Encompass Health by 4.6% during the third quarter. Verdence Capital Advisors LLC now owns 3,670 shares of the company’s stock worth $355,000 after acquiring an additional 160 shares during the period. Finally, Mount Yale Investment Advisors LLC lifted its holdings in Encompass Health by 6.6% during the second quarter. Mount Yale Investment Advisors LLC now owns 2,749 shares of the company’s stock valued at $236,000 after purchasing an additional 170 shares in the last quarter. 97.25% of the stock is owned by hedge funds and other institutional investors.

About Encompass Health

Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions.