Leerink Partnrs Has Bullish Estimate for EHC FY2026 Earnings

Encompass Health Co. (NYSE:EHC) – Equities researchers at Leerink Partnrs lifted their FY2026 EPS estimates for Encompass Health in a report released on Wednesday, October 30th. Leerink Partnrs analyst W. Mayo now anticipates that the company will post earnings of $5.00 per share for the year, up from their prior estimate of $4.71. Leerink Partnrs currently has a “Strong-Buy” rating on the stock. The consensus estimate for Encompass Health’s current full-year earnings is $4.28 per share.

Other equities analysts have also issued research reports about the company. KeyCorp raised their price target on Encompass Health from $115.00 to $117.00 and gave the company an “overweight” rating in a research note on Tuesday, October 29th. Barclays boosted their price target on shares of Encompass Health from $109.00 to $116.00 and gave the company an “overweight” rating in a report on Tuesday, October 29th. Truist Financial reiterated a “buy” rating and set a $116.00 price objective (up from $108.00) on shares of Encompass Health in a research note on Wednesday, October 30th. Stephens restated an “overweight” rating and set a $105.00 target price on shares of Encompass Health in a report on Tuesday, August 6th. Finally, UBS Group lifted their price target on Encompass Health from $100.00 to $110.00 and gave the company a “buy” rating in a report on Wednesday, September 25th. Nine analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $107.11.

Encompass Health Trading Down 0.6 %

EHC opened at $98.91 on Monday. Encompass Health has a 52 week low of $62.58 and a 52 week high of $102.36. The company has a market capitalization of $9.95 billion, a P/E ratio of 23.89, a PEG ratio of 1.32 and a beta of 0.88. The stock’s fifty day moving average is $94.47 and its two-hundred day moving average is $88.94. The company has a quick ratio of 1.35, a current ratio of 1.04 and a debt-to-equity ratio of 0.88.

Encompass Health (NYSE:EHC) last issued its 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 business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.33 billion. During the same period in the prior year, the firm earned $0.86 EPS. The company’s revenue for the quarter was up 11.9% compared to the same quarter last year.

Institutional Investors Weigh In On Encompass Health

Hedge funds have recently added to or reduced their stakes in the business. UMB Bank n.a. lifted its holdings in shares of Encompass Health by 387.7% in the 3rd quarter. UMB Bank n.a. now owns 317 shares of the company’s stock valued at $31,000 after buying an additional 252 shares during the period. V Square Quantitative Management LLC raised its position in Encompass Health by 53.0% during the third 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 in the last quarter. Oakworth Capital Inc. acquired a new position in Encompass Health in the second quarter valued at approximately $40,000. Benjamin F. Edwards & Company Inc. grew its stake in shares of Encompass Health by 58.9% during the 2nd quarter. Benjamin F. Edwards & Company Inc. now owns 534 shares of the company’s stock worth $46,000 after purchasing an additional 198 shares during the period. Finally, Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of Encompass Health during the 2nd quarter valued at approximately $58,000. 97.25% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

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

Encompass Health announced that its board has approved a stock buyback plan on Wednesday, July 24th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to buy up to 5.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Encompass Health Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Thursday, January 2nd will be paid a dividend of $0.17 per share. The ex-dividend date is Thursday, January 2nd. This represents a $0.68 annualized dividend and a yield of 0.69%. Encompass Health’s payout ratio is presently 16.43%.

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.