Equities Analysts Offer Predictions for EHC FY2026 Earnings

Encompass Health Co. (NYSE:EHC - Free Report) - Equities research analysts at Leerink Partnrs increased their FY2026 earnings per share (EPS) estimates for Encompass Health in a research report issued to clients and 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 prior forecast 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.

Encompass Health (NYSE:EHC - Get Free Report) last released 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. The company had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.33 billion. Encompass Health had a return on equity of 17.60% and a net margin of 8.10%. The firm's revenue was up 11.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.86 earnings per share.

A number of other analysts have also recently commented on the company. UBS Group lifted their target price on Encompass Health from $100.00 to $110.00 and gave the stock a "buy" rating in a research report on Wednesday, September 25th. KeyCorp increased their price target on shares of Encompass Health from $115.00 to $117.00 and gave the stock an "overweight" rating in a report on Tuesday, October 29th. Leerink Partners initiated coverage on Encompass Health in a report on Wednesday, July 10th. They issued an "outperform" rating and a $100.00 price objective on the stock. Truist Financial reiterated a "buy" rating and set a $116.00 target price (up previously from $108.00) on shares of Encompass Health in a research report on Wednesday, October 30th. Finally, Barclays raised their price target on Encompass Health from $109.00 to $116.00 and gave the company an "overweight" rating in a report on Tuesday, October 29th. Nine investment analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $107.11.

Encompass Health Stock Up 1.3 %

Shares of EHC traded up $1.32 during midday trading on Monday, reaching $100.23. The stock had a trading volume of 866,865 shares, compared to its average volume of 641,776. 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 company's fifty day simple moving average is $94.66 and its two-hundred day simple moving average is $89.09. The company has a market cap of $10.09 billion, a price-to-earnings ratio of 24.21, a PEG ratio of 1.32 and a beta of 0.88. Encompass Health has a 1-year low of $62.58 and a 1-year high of $102.36.

Encompass Health Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Thursday, January 2nd will be given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 0.68%. The ex-dividend date of this dividend is Thursday, January 2nd. Encompass Health's dividend payout ratio is presently 16.43%.

Encompass Health declared that its Board of Directors has initiated a stock buyback plan on Wednesday, July 24th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 5.4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Insider Transactions at Encompass Health

In other news, CFO Douglas E. Coltharp sold 12,260 shares of Encompass Health stock in a transaction that occurred on Tuesday, August 13th. The stock was sold at an average price of $86.34, for a total transaction of $1,058,528.40. Following the sale, the chief financial officer now owns 136,227 shares of the company's stock, valued at approximately $11,761,839.18. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 2.10% of the company's stock.

Institutional Investors Weigh In On Encompass Health

A number of institutional investors and hedge funds have recently bought and sold shares of EHC. Magnetar Financial LLC grew its stake in Encompass Health by 1,176.6% during the 2nd quarter. Magnetar Financial LLC now owns 744,836 shares of the company's stock valued at $63,899,000 after acquiring an additional 814,018 shares in the last quarter. Thrivent Financial for Lutherans boosted its position in shares of Encompass Health by 2,302.7% in the second quarter. Thrivent Financial for Lutherans now owns 603,558 shares of the company's stock valued at $51,780,000 after acquiring an additional 578,438 shares during the period. Price T Rowe Associates Inc. MD increased its stake in Encompass Health by 614.8% during the first quarter. Price T Rowe Associates Inc. MD now owns 540,519 shares of the company's stock valued at $44,637,000 after acquiring an additional 464,897 shares during the period. Scout Investments Inc. bought a new stake in Encompass Health in the 1st quarter valued at $29,356,000. Finally, TD Asset Management Inc raised its holdings in shares of Encompass Health by 16.0% in the 1st quarter. TD Asset Management Inc now owns 2,283,674 shares of the company's stock worth $188,586,000 after buying an additional 314,488 shares in the last quarter. 97.25% of the stock is owned by institutional investors and hedge funds.

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.